Rennova Health Inc (RNVA)

[WHIP THE HORSE]

RNVA SPINOFF---Spin-offs are considered a distribution of dividends by the parent company and,
therefore, the only approval needed to complete a spin-off is that of the board of the parent
company. As the Board decides whether to spin off the subsidiary, the directors are bound by their
fiduciary duties to act in good faith, on an informed basis, and in the best interest of the Company
and its shareholders. In making a decision to spin off a wholly owned subsidiary, the board of
the parent company does not owe fiduciary duties to the newly spun-off company or to any
prospective shareholders of the spun-off company.