ProSomnus Sleep Technologies Takes Strategic Action to Position Company for Long-Term Success

Announces Plan for $20 million in Aggregate New Financing to Support Daily Operations, Restructuring, Strategic Initiatives, and Advocacy

Company Enters into Voluntary Chapter 11 Restructuring Process Which Will Take Company Private, Reduce Debt and Enable Execution of Key Initiatives

Minimal Expected Operational Impact to Business, Company Wil Continue Serving Customers and Delivering Products

PLEASANTON, Calif., May 08, 2024 (GLOBE NEWSWIRE) -- ProSomnus, Inc. (the “Company”), the leading non-CPAP Obstructive Sleep Apnea (OSA) therapy, announced it has initiated a voluntary restructuring process under Chapter 11 of the U.S. Bankruptcy Code to reorganize and strengthen its capital structure going forward, improve financial flexibility and better position the company for long-term success. In connection with this process, the Company has secured the support of multiple existing key investors and lenders under a plan that is designed to deliver an aggregate of approximately $20 million of new capital into the Company. Such Capital will support ongoing operations and the development of strategic initiatives including the company’s next generation sensor device.

In connection with this restructuring, ProSomnus intends to retain the ability to fully maintain ongoing operations, including the payment of the Company’s employees, customers, and vendors in the ordinary course of business during and after the restructuring.

“The voluntary restructuring announced today will enable us to move ahead as a stronger company,” said Len Liptak, Chief Executive Officer for ProSomnus Sleep Technologies. “This very difficult decision was reached after conducting several extensive processes to identify alternatives. Reestablishing a healthy financial foundation for our company, with the support of our lenders, we expect to leave the process with more cash, less debt, less expense, and more time to focus on devices, customers and patients. This renewed foundation will place ProSomnus in a position to realize our mission and develop our next generation sensor device technology. I am grateful for the support of our customers, suppliers, and employees as we work through this process.”