Affluence Corporation (OTCID: AFFU), a diversified global technology company focused on Smart City, Industrial IoT, and security software solutions, announced that it has entered negotiations with the holders of the majority of its outstanding convertible debt to restructure these obligations into long-term preferred equity instruments. This initiative represents the next phase of the company’s broader balance sheet restructuring strategy, which targets eliminating legacy liabilities and reducing the impact of dilutive convertible instruments.
Management is actively engaged in discussions with convertible debt holders to exchange instruments into structured preferred equity, designed to align investor interests with the company’s long-term growth trajectory. As part of these negotiations, Affluence will seek to implement structured leak-out arrangements potentially tied to a future national market listing. These provisions aim to support share price stability and minimize market disruption.
The company believes that the recent approval of its reverse stock split marks a significant milestone, strengthening its capital structure and positioning it for a potential uplisting to a national securities exchange. This development has contributed to constructive engagement with debt holders, who increasingly recognize the company’s improved outlook. While no definitive agreements have been finalized, management remains optimistic.
“We are entering what we believe to be one of the most important and exciting phases in the Company’s evolution,” said Oscar Brito, President of Affluence Corporation. “With the reverse stock split now approved and our balance sheet restructuring efforts commencing, we are aligning all key stakeholders around a long-term vision for value creation.” He added that the company remains focused on advancing previously announced acquisition opportunities to further accelerate growth.
This restructuring effort is crucial for improving shareholder equity and meeting the financial and structural requirements necessary for a potential national exchange listing. Affluence Corporation, through its operating subsidiaries including Mingothings, delivers AI-enabled IoT platforms, data visualization, and intelligent infrastructure solutions to enterprise, industrial, and municipal clients worldwide. The company expects to provide additional updates as negotiations progress.
