UPDATE — Quipt Announces Early Conversion of 2019 Convertible Debentures Strengthening its Balance Sheet


CINCINNATI, Aug. 09, 2022 (GLOBE NEWSWIRE) — Quipt Home Medical Corp. (“To leave“or the”Company”) (NASDAQ:QIPT; TSXV:QIPT), an American home medical equipment industry leader focused on end-to-end respiratory care, is pleased to announce that it has exercised its right ( the “Conversion right”) pursuant to the debenture dated March 7, 2019 (the “Indenture”), which governs all of the Corporation’s 8.0% unsecured convertible debentures issued on March 7, 2019 (the “Debentures“), to convert (the “Conversion“) all of the outstanding principal amount of the remaining Debentures as of September 8, 2022 (the “Conversion Date”) into ordinary shares of the Company (the “Ordinary actions”).

Pursuant to the terms of the Indenture, the Company may force the conversion of the unpaid principal amount (less any tax required to be deducted or withheld by law) of the Debentures into Common Shares at a conversion price of $5.20 per share common stock if the volume-weighted average trading price of the common shares on the TSX Venture Exchange (the “TSXV”) for 20 consecutive trading days is equal to or greater than $6.48.

As of the close of business on August 8, 2022, the volume-weighted average trading price of common shares listed on the TSXV exceeded $6.48 for a period of 20 consecutive trading days. Following the conversion, the estimated remaining aggregate of approximately $9,771,000 (par value) of the outstanding Debentures will be converted into approximately 1,879,038 Common Shares, and accrued and unpaid interest (less any required deductions or withholdings) will be paid by the Company in cash to the applicable holders of the Debentures.

Management commentary

“The conversion of this debenture is an exciting step for the Company as we continue to execute on our aggressive growth strategy. The debenture conversion further strengthens our balance sheet, eliminates interest payments associated with debentures, and simplifies our debt structure,” said Greg Crawford, president and CEO of Quipt. “Since April 2022, we have successfully completed four acquisitions, adding over 30,000 active patients, over $25 million in revenue and over $4.5 million in adjusted EBITDA. Additionally, we secured a national insurance contract with the largest payer in the United States, dramatically increasing patient accessibility, and recently announced a supply contract with Cardinal Health, which will provide expansion into new product offerings and will generate cost savings. overtime. As we continue to drive each area of ​​business, the conversion of this convertible debenture is another testament to our positive momentum.


The Company provides home monitoring and disease management services, including end-to-end respiratory solutions for patients in the United States healthcare market. It seeks to continue to expand its offerings to include the management of multiple chronic disease states with a focus on patients with heart or lung disease, sleep disturbances, reduced mobility and other chronic health conditions. The Company’s primary business objective is to create shareholder value by providing a broader range of services to patients requiring home monitoring and chronic disease management. The Company’s organic growth strategy is to increase annual revenue per patient by offering multiple services to the same patient, consolidating patient services and making life easier for the patient.

Notice to readers

Unless otherwise indicated, all dollar amounts in this press release are expressed in ‎Canadian dollars.‎

Neither the TSX Company Swap neither his Regulation Services Vendor (as this term is defined in the Strategies of the TSX Company Swap) accepted responsibility for the adequacy Where precision of this Release.

avant-garde Declarations

Certain statements contained in this press release constitute “forward-looking information” as that term is defined under applicable Canadian securities laws. The words “may”, “could”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “forecast”, “outlook” and similar expressions with respect to the Company, including statements regarding the proposed Conversion and the timing thereof, and the benefits to the Company as a result of the Conversion. All statements other than statements of historical fact may be forward-looking information. These statements reflect the Company’s current beliefs and intentions with respect to future events, as well as current information available to the Company, and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to differ from those described herein, should one or more of these risks or uncertainties materialize. Examples of such risk factors include, but are not limited to: credit; market (including stocks, commodities, currencies and interest rates); liquidity; operational (including technology and infrastructure); reputation; Insurance; strategic; regulatory; legal; environmental; capital adequacy; general business and economic conditions in the regions where the Company operates; the Company’s ability to execute on its key priorities, including successful acquisitions, business retention and strategic plans, and to attract, develop and retain key executives; difficulty integrating newly acquired businesses; the ability to implement business strategies and seize business opportunities; low profit market segments; disruptions or attacks (including cyberattacks) on the Company’s information technology, Internet, network access, or other voice or data communication systems or services; developments in various types of fraud or other criminal behavior to which the Company is exposed; failure by third parties to meet their obligations to the Company or its affiliates; the impact of new laws and regulations, changes or enforcement thereof; lower reimbursement rates; reliance on a few payers; possible discoveries of new drugs; a new business model; dependence on key suppliers; permitting and licensing in a highly regulated business; the challenging global litigation environment, including in the United States; increased competition; changes in exchange rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to continue operations; critical accounting estimates and changes to accounting standards, policies and methods used by the Company; the occurrence of catastrophic natural and unnatural events and claims resulting from such events; and risks related to COVID-19, including various recommendations, orders and measures by government authorities in an attempt to limit the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolation, shelter-in-place and social media. remoteness, disruptions in markets, economic activity, financing, supply chains and sales channels, and deterioration in general economic conditions, including a possible national or global recession; as well as the risk factors discussed or referred to in the Company’s disclosure documents filed with the United States Securities and Exchange Commission and available at www.sec.gov, and with the securities regulatory authorities of certain provinces of Canada and available at www.sedar. com. If any factor affects the Company in an unexpected way, or if the assumptions underlying the forward-looking information prove incorrect, the actual results or events could differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Further, the Company assumes no responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release, and the Company undertakes no obligation to publicly update or revise the forward-looking information, except as required by applicable law.

Non-GAAP Measures

This press release refers to “Adjusted EBITDA”, which is a non-GAAP, non-IFRS financial measure that does not have a standardized meaning prescribed by GAAP or IFRS. The Company’s presentation of this financial measure may not be comparable to similarly titled measures used by other companies. This financial measure is intended to provide additional information to investors regarding the performance of the Company. Adjusted EBITDA is defined as EBITDA excluding stock-based compensation. Adjusted EBITDA is a non-IFRS measure that the Company uses as an indicator of financial health and excludes several items that may be useful in reviewing the Company’s financial condition, as applicable, including interest, income taxes, amortization, amortization, stock-based compensation, impairment of goodwill and change in fair value of debentures and financial derivatives.

For more information, visit our website at www.Quipthomemedical.comor contact:

cole stevens
Vice President of Corporate Development
Quipt Home Medical Corp.
[email protected]

Gregory Crawford
Chief executive officer
Quipt Home Medical Corp.
[email protected]


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