Rennova Health Inc (RNVA)

[spshond]

A response from the CEO to myself voicing our concerns;

Let me know your thoughts and if you want anything added. I was in Florida last weekend and made a pit stop into their location.

From: Seamus Lagan <[e-mail]>
Sent: Friday, May 04, 2018 11:32 AM
To: WJ <[e-mail]>
Cc: Sebastien Sainsbury <[e-mail]>
Subject: Your message

Wilmer your message was forwarded to me.
This is an important matter and I appreciate your comments. I believe you will find from our filings that I am pretty vested in making this Company a success, having invested well in excess of $3M of personal money over the past few years. I believe the approvals as requested by the Board are necessary at this time and should be supported.

From filings:
Alcimede, of which Mr. Lagan is the sole manager..
"On February 3, 2015, the Company borrowed $3,000,000 from Alcimede. The note has an interest rate of 6% and was originally due on February 2, 2016. In February 2016, Alcimede agreed to extend the maturity date of the loan to February 2, 2017 and the maturity date has since been extended to February 2, 2018. On June 29, 2015, Alcimede exercised options granted in October 2012 to purchase one million shares of the Company’s common stock at an exercise price of $2.50 per share. The loan outstanding was reduced in satisfaction of the aggregate exercise price of $2,500,000. In August 2016, a portion of the remaining $500,000 balance was repaid by the Company through the issuance of shares of common stock."

The value of the Company for shareholders can only be increased in a reasonable time-frame by continued growth in revenue from acquisition.
The limited access to capital through what was a very difficult financial period meant that institutional investors were indeed able to leverage the Company for terms that have been protective to them but until the Company gets back to more significant revenues it will remain difficult to access cheaper capital. We have adopted a plan that should get us to that point later this year.
Meantime the unwillingness by shareholders to approve the increase in authorised share capital is actually counterproductive to their wish to secure value. If we cannot issue shares to secure capital or services or to make further acquisitions then the Company will be contained to being a small public company that will struggle to remain compliant with the filings to remain public and current revenue and cash flow without additional capital will likely not be adequate to sustain the Company as a going concern in its current form.

All shareholders have a right to decide what way they wish to vote and if they decide not to support the efforts and request from the Board of Directors that is their right. We would have hoped that shareholders recognise and support the efforts being made to create value and I can only ask that you reconsider your position.


Sincerely

Seamus Lagan



Seamus Lagan
CEO
Rennova Health, Inc.

e. [e-mail]
p. 561.855.1620
web. www.RennovaHealth.com

_____________________________
CONFIDENTIALITY NOTICE:
This message is intended only for the use of the individual or entity to which it is addressed, and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of the message is not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately and destroy this message.