Luminar Media Group has undertaken significant financial restructuring to address legacy debt and protect shareholder interests, focusing on reducing potential stock dilution and enhancing the company’s financial position.
The company has successfully retired $150,232.34 of convertible notes, representing 32% of its inherited debt from a May 2024 reverse merger. By reassigning $110,000 of outstanding debt to new lenders with a six-month conversion moratorium, Luminar Media Group has further lowered immediate conversion risks by an additional 23%.
CEO Yoel Damas emphasized the strategic importance of these actions, noting that the company raised approximately $200,000 in new financing specifically targeted at debt reduction. The new financing includes extended repayment periods and restructured conversion features that align more closely with current market conditions.
Initially, the company had assumed $472,821.83 in convertible notes that were originally set to convert at $0.01 per share, which corresponded with the stock’s average trading price of $0.015 at the time. Recognizing the potential for excessive shareholder dilution, management proactively negotiated with legacy noteholders to delay and renegotiate conversion terms.
The company has secured commitments from remaining legacy noteholders representing $212,589.49, or 45% of the original total debt, to negotiate terms and delay conversions. This approach provides additional financial flexibility and demonstrates a disciplined approach to capital management.
Luminar Media Group, a fintech company specializing in financial solutions for underserved communities, particularly Latino and minority-owned businesses, remains committed to transparency and maximizing long-term shareholder value. The strategic debt reduction efforts reflect the company’s focus on prudent financial decision-making and risk management.
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