Intelligent Living America, Inc. Announces Elimination of $850,000 in Convertible Debt; Significantly Strengthens Balance Sheet
Recognizes $916,000 Gain on Transaction
Jan 20, 2015 (eTeligis.com via COMTEX) -- CORAL GABLES, FL, United States, via ETELIGIS INC., 01/20/2015 - - Intelligent Living America, Inc. (OTC Pink: ILIV) (PINKSHEETS: ILIV), announced today that it has completed a transaction to eliminate $850,000 of its convertible debt obligations, along with the related accrued interest payable of $72,314, in exchange for 4 million shares of its $0.001 par value common stock, pending the delivery of the stock certificate to escrow. The transaction equates to a conversion price of $0.229 per share, a significant premium of more than 14,200% to the closing price on Friday, January 16, 2015 of $0.0016.
As a result of the transaction, the Company has reduced its indebtedness by $922,300 and will recognize a gain on the extinguishment of debt of approximately $915,900 in the first quarter of fiscal 2015. When taken together with the recently announced Venturian Group, Inc. debt reductions, Intelligent Living America, Inc. has been able to reduce its outstanding debt by over $1.275 million. In addition, the Company is also renegotiating certain additional convertible notes to receive more favorable conversion terms on those obligations.
"This transaction substantially improves our capital structure by eliminating debt and eliminating a significant amount of potential dilution to common shares that would have resulted from its conversion. We have eliminated more than 46% of our convertible debt, reduced the overall debt on our balance sheet by over $1.275 million dollars, and positioned the Company to move forward aggressively with our business strategy. This is another milestone in the execution of our strategy to become a leading company in the IT/Cloud Technology and health and wellness industries," stated Mark Lucky, CFO of Intelligent Living America, Inc.
"This transaction is part of an ongoing effort to improve the company's long term outlook by reducing our outstanding debt obligations, strengthening the balance sheet, shedding unprofitable and/or non-core businesses, reducing overhead and improving operational efficiencies across all of our current subsidiary companies, to increase profitability," according to Paul Favata, President of Intelligent Living America, Inc.
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