Avenir Wellness Resolves Legal Disputes
Avenir Wellness Solutions announces a comprehensive settlement agreement and strategic financial restructuring.
December 27, 2024
Settlement Agreement Resolves Legal Disputes
Avenir Wellness Solutions, formerly Cure Pharmaceutical Holding Corp., has finalized a settlement agreement with Ionic Ventures to resolve multiple ongoing legal disputes. The agreement includes the partial conversion of outstanding debt and a mutual release of claims. The resolution allows both parties to avoid prolonged litigation and fosters a collaborative path forward.
The disputes arose from two cases initiated by Avenir Wellness: one in New York’s Supreme Court and another in California. The settlement concludes these cases, addressing claims related to convertible notes issued in 2020. This agreement underscores Avenir’s focus on maintaining constructive relationships with its creditors while ensuring financial stability.
Financial Restructuring Through Debt Conversion
Under the agreement, Ionic Ventures partially converted two subordinated convertible notes—totaling approximately $12.3 million—into common stock, receiving 4.1 million shares in the process. The remaining debt has been restructured into a $2.85 million senior secured note. This note features a two-year maturity, a 125% redemption premium for defaults, and secured claims ranking above other debts.
Avenir also secured additional bridge financing of $125,000 from Ionic Ventures. This financing could expand to $500,000 or more through collaborative efforts with other investors. The terms include a competitive interest rate, conversion options, and equity participation, enabling Avenir to improve liquidity and pursue strategic objectives.
Strategic Outlook
This financial restructuring positions Avenir to navigate future opportunities with greater flexibility. By resolving legal challenges and stabilizing its capital structure, the company can now focus on growth initiatives. The settlement aligns with Avenir’s commitment to shareholder value and long-term operational health.
The streamlined operations and stronger financial footing are expected to benefit stakeholders, enhancing the company’s ability to attract investors and drive innovation in wellness solutions.
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