Rennova Health Inc (RNVA)

[powerbattles]

The decreasing in PPS that doesn't mean is a proven failed business plan. Matter of facts. They are doing extremely well. They acquired 3 Hospitals, pay off most of their debt, and restructure the remaining debt until Sep-2019. Their next step is to IPO SPIN-OFF Advanced Molecular Services Group, Inc. (AMSG). To date, they have invested more than $20 million in these businesses. The Spin-Off expected to reduce the stockholder's equity perhaps meet the requirement of NASDAQ.

Let's make no mistake: RNVA is a new startup Corp that taken over an old company which lacking management and a huge amount of debt. You should listen to the interview. They are on target breakeven in the year 2018.

Let's take a good look at their business model to see where and Why the trouble started.

$RNVA SUBSIDIARY MEDYTOX. Fast-Growing Chain of Labs, Medytox Diagnostics



Medytox (OTCBB: MMMS) This is the holding company.
Medytox Diagnostics, Inc., which owns and operates half a dozen clinical laboratories throughout the U.S.

On Apr 16, 2015 CollabRx (Nasdaq:CLRX) and Medytox have reached a definitive merger agreement.

"CollabRx posted revenues of $415,000 and a net loss of $4.3 million in 2014. Medytox recorded $57.9 million in revenues and a net income attributable to the firm of $7.8 million last year.
https://www.genomeweb.com/business-news/collabrx-medytox-reach-merger-agreement

On October 28, 2015 Medytox Solutions, Inc. Stockholders Approve Merger With CollabRx, Inc.
"Assuming completion of the transaction, the combined company will be known as Rennova Health, Inc. and trade under the symbol "RNVA" beginning at market open on November 3, 2015.

On December 19, 2016 Rennova Health, Inc. Prices $12,350,000 Public Offering Move to NASDAQ under the symbol RNVA.

Here's where the trouble started.

"an underwritten public offering of 12,350 shares of its Series H Convertible Preferred Stock at a per share price to the public of $1,000. The Series H Preferred Stock has a stated value of $1,000 per share with each share convertible into 11,111 shares of common stock, at a conversion price of $0.09 per share.

Since RNVA had a share structure that was so low, along with a conversion price of $0.09 per share, that is what caused the trouble to take place. The noteholders had no mercy. Massive conversion disasters occurred. RNVA failed to meet the NASDAQ requirements.

Because they needed to stay on NASDAQ, they had no other choice than to do the R/S. During the year 2017, they did two r/s.

Great news! RNVA the company was able to pay off most of the debt. They managed to restructure the remaining notes so the debt is not due until Sep 2019.

Good times ahead. The toxic notes disasters are no longer in effect. We are sitting at the bottom of the barrel. The downside is Min but the upside is virtually unlimited. IMHO:))