TruGolf (TRUG, Financial) has successfully negotiated a significant financial restructuring by converting all of its outstanding convertible notes into a newly created Series A Preferred Stock. This move includes exchanging existing common stock warrants for a mix of the new preferred stock and additional warrants, potentially bringing in an extra $15.1 million if fully exercised by investors.
In a related development, the company's founders agreed to convert their accrued dividends into Class A and Class B common stock. This strategic restructuring eliminates approximately $9.3 million in debt, aiming to optimize TruGolf's capital structure. Moreover, the ability for noteholders to participate in future debt tranches has been discontinued.
These initiatives are part of TruGolf's broader strategy to comply with NASDAQ's listing requirements by improving its financial footing. The conversion of convertible notes and the issuance of Series A Preferred Stock remain contingent upon certain conditions, including obtaining shareholder consent. A vote seeking this approval will be scheduled in the future. Further details can be accessed in the company's Form 8-K filed on April 23, 2025.
