RNVA is in the triple zero price range. Is a reverse split coming?
Shares of Rennova Health Inc. continue their slide Tuesday and are trading in the triple zero price range. RNVA closed at .001 down another 9%. Volume was over 1 billion shares on just over 1500 trades. Trading ranged from the open at .0011 to the low of .0008 as sellers continue to put pressure on the stock.
RNVA FIles 8K
Rennova Health filed an 8K pre market Tuesday. Some of the hightlights include:
Item 1.01. Entry into a Material Definitive Agreement.
On May 10, 2021, Rennova Health, Inc. (the “Company”) closed an offering of shares of its newly-authorized Series O Convertible Redeemable Preferred Stock (the “Series O Preferred Stock”). The offering was pursuant to the terms of the Securities Purchase Agreement, dated as of May 10, 2021 (the “Purchase Agreement”), between the Company and certain existing institutional investors of the Company.
The Purchase Agreement provides for the issuance of up to 4,400 shares of Series O Preferred Stock at four closings of 1,100 shares each. If all such shares of Series O Preferred Stock are issued, the Company will receive proceeds of $4,000,000.
The first closing occurred on May 10, 2021. The Company issued 1,100 shares of Series O Preferred Stock and received proceeds of $1,000,000.
Item 5.03. Amendments to Articles of Incorporation or Bylaws; Changes in Fiscal Year.
On May 7, 2021, the Company filed a Certificate of Designation with the Secretary of State of the State of Delaware to authorize the issuance of up to 10,000 shares of Series O Preferred Stock. The following is a summary of certain terms of the Series O Preferred Stock.
Item 8.01 Other Events.
As a result of conversions of shares of the Company’s preferred stock, the Company currently has 10,000,000,000 shares of common stock issued and outstanding. The Company, therefore, has issued all of its authorized shares of common stock. It cannot issue additional shares of common stock unless and until it is able to amend its Certificate of Incorporation to increase its authorized common stock or it effects a reverse split. The Company needs immediate additional capital to execute on its business plan and without the ability to issue shares of common stock will have difficulty securing the capital required to continue in business.
RNVA continues to get crushed under the pressure of convertable financings. There does not appear to be an end in sight.
At this point, the company is out of shares which means they will file to increase the authorized soon. With the stock now trading in the triple zero range, there is a strong possibility of a reverse split.
Wash, Rinse, Repeat.