The balance of approximately $17.4M was raised from shareholders that were also institutional entities. That rights offering had a maximum raise amount of $100M, however, a total of $27.4M was raised, with approximately $10M coming from our then approximately 400,000 non-institutional shareholders.
The buyback amount of up to $5,000,000 represents approximately 27% of HCMC’s current capital reserves, and approximately half of the amount invested by non-institutional shareholders during our rights offering of July 2021. I will now explain each component of our plan in more depth. Therefore, at this time, rather than propose a shareholder vote to approve a sizable reverse split, which may or may not be successful (and even if successful may or may not result in added value to our shareholders), management and the board have decided upon a four-point plan that includes the following:Ī buyback of up to $5,000,000 of HCMC common stock.Ī spinoff of certain HCMC assets into a new publicly traded company (hereinafter referred to as “NewCo” until a name is announced).Ī stock dividend to HCMC shareholders of the stock in NewCo, on a to be determined record date, of 100% of the initially issued shares in the new public company, subject to certain dividend conditions.Įquity capital raises from institutional investors to strengthen and fund both HCMC and NewCo moving forward. Is projecting roughly doubling our year-over-year revenue from 2021 to 2022.īut these tremendous results have had no upward effect on the HCMC common stock price, the market capitalization of the Company, or the daily trading volume of our common stock.Īccordingly, management believes that as a part of HCMC, the retail grocery and wellness divisions, even with further growth and profitability, may not bring additional value to HCMC shareholders by having their success reflected in the stock price. Most recently reported a record setting 2nd quarter top line revenue, and Significantly expanding its grocery retail business,Īdding the Healthy Choice Wellness Center segment,Ĭreating a 46% increase in 1st quarter revenue this year, year-over-year, Over the past year HCMC has been successful in:
When addressing share structure, there are a limited number of ways to reduce the number of outstanding shares, with some of the most common being a reverse split or a buyback of shares by HCMC through a share repurchase program. Our share ownership structure has made this a complex and difficult task.
The letter follows below and can also be accessed from the Company's website at August 22, 2022Īt this time I would like to once again thank you for your continued loyalty and support.Īs I have previously indicated, HCMC management and its board of directors have been working diligently on a comprehensive plan in an attempt to bring meaningful added value to its shareholders. (OTC Pink: HCMC) today released a letter to the shareholders from Jeffrey Holman, its CEO, outlining HCMC’s four-point plan to increase their shareholder value.
HOLLYWOOD, FL, August 22, 2022 - Healthier Choices Management Corp. Plan includes (1) buyback of common stock, (2) subsidiary spinoff, (3) stock dividend, and (4) equity capital raises through institutional investors.
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