Avalon GloboCare Eliminates Majority of Debentures Through $2.6 Million Conversion, Strengthening Balance Sheet, Reduces Overhang

Core Insights - The company has successfully converted the majority of its outstanding debentures, significantly strengthening its balance sheet and enhancing shareholder value [1][3][4] Financial Overview - The debentures originated from a June 2024 financing round with an aggregate principal amount of $2.8 million, of which $288 thousand was repaid in cash and $2.6 million was converted into common stock [2] - The conversion eliminates the majority of Avalon's outstanding debt, improving financial transparency and supporting long-term shareholder value creation [2][3] Strategic Implications - The conversion is viewed as a meaningful milestone that strengthens the company's capital structure, enhances capital efficiency, and improves overall financial flexibility [4] - This progress aligns with the company's recent return to compliance with Nasdaq's minimum stockholders' equity requirement, positioning it to execute strategic growth initiatives with greater confidence [4] Company Profile - Avalon GloboCare Corp. focuses on developing precision diagnostic consumer products and advancing intellectual property in generative AI publishing and software [5] - The company is currently marketing the KetoAir™ breathalyzer device, which is registered as a Class I medical device with the U.S. FDA, and plans to develop additional diagnostic uses for this technology [5]