Accredited Solutions Secures Agreement to Limit Share Dilution
TL;DR
Accredited Solutions has reached an agreement to avoid dilution of shares, giving them a competitive edge in the market.
The interim agreement allows Accredited Solutions to use proceeds from its Reg A offering to redeem convertible securities, thus avoiding additional share issuance.
Accredited Solutions' agreement demonstrates commitment to creating shareholder value and avoiding dilution, ultimately benefiting its stakeholders.
Accredited Solutions' strategy to avoid share dilution and achieve its growth plan makes it an exciting opportunity for investors.
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Accredited Solutions, Inc. (OTC: ASII), the parent company of Diamond Creek Water, has announced a significant agreement with holders of its outstanding variable price conversion securities. The agreement implements a 60-day lock-up and 6-month leak-out on all conversions, marking a crucial step towards full cash redemption of these instruments.
This interim agreement is part of Accredited Solutions' strategy to completely redeem all outstanding variable price convertible instruments, thereby avoiding the issuance of significant additional shares. The company plans to use proceeds from an upcoming Reg A offering to redeem these securities, eliminating the need for conversion into common stock. This approach aims to achieve a lower cost of capital and significantly limit shareholder dilution.
Eduardo Brito, CEO of Accredited Solutions, expressed gratitude for the renewed trust from financing partners, stating that the agreement demonstrates their confidence in the company's long-term vision. The move is expected to provide a cost-effective solution for managing the company's capital structure and support its ambitious 5-year growth plan, which targets $750 million in annual revenue through strategic acquisitions and organic expansion in the telco/fintech and beverage divisions.
The agreement's implications extend beyond immediate financial restructuring. It positions Accredited Solutions to pursue its acquisition strategy while strengthening its financial foundation. This balance-sheet-friendly approach could enhance the company's ability to attract future investments and execute its growth plans more effectively.
For investors and market watchers, this development signals a potential shift in Accredited Solutions' financial strategy, focusing on minimizing dilution and optimizing capital structure. It may also indicate increased confidence in the company's future prospects from its financial partners.
As Accredited Solutions moves forward with this agreement, the market will likely watch closely for its impact on the company's financial performance and ability to execute its ambitious growth plans. The success of this strategy could set a precedent for other companies looking to manage convertible securities while minimizing shareholder dilution.
Curated from NewMediaWire
