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

CINCINNATI, Aug. 09, 2022 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. (“Quipt” or the “Company”) (NASDAQ:QIPT; TSXV:QIPT), a U.S. based leader in the home medical equipment industry, focused on end-to-end respiratory care, is pleased to ‎announce that it has exercised its right (the “Conversion Right”) under the debenture indenture dated March 7, 2019 (the “Indenture”), which governs all of the Company’s 8.0% unsecured convertible debentures issued on March 7, 2019 (the “Debentures”), to convert (the “Conversion”) all of the principal amount outstanding of the remaining Debentures on September 8, 2022 (the “Conversion Date”) into common shares of the Company (the “Common Shares”).

Pursuant to the terms of the Indenture, the Company may force conversion of the outstanding principal amount (less ‎any tax required by law to be deducted or withheld) of the Debentures into Common Shares at the conversion price of $5.20 per Common ‎Share if the volume weighted average trading price of the Common Shares on the TSX ‎Venture Exchange (the “TSXV”) for 20 consecutive trading days equals or exceeds $6.48.

As of close of markets on August 8, 2022, the volume weighted average trading price of the Common Shares listed on the TSXV exceeded $6.48 for a period of 20 consecutive trading days. As a result of the Conversion, the estimated remaining total of approximately $9,771,000 (face value) of Debentures outstanding 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 milestone for the Company, as we continue to execute on our aggressive growth strategy. The conversion of the debentures further ‎strengthens our balance sheet, eliminates the interest payments ‎ associated with the debentures, and simplifies our debt structure,” said Greg Crawford, Chairman and CEO of Quipt. “Since April 2022, we have successfully ‎completed ‎four acquisitions adding over 30,000 active patients, over US$25 million in revenue and over US$4.5 million of Adjusted EBITDA. Additionally, we were awarded a national insurance contract with the largest payer in the United States dramatically increasing patient accessibility, and most ‎recently announced a supply contract with Cardinal Health, which will provide opportunities to expand into new product offerings as well as generate cost savings over time. As we continue to drive each area of the business, the conversion ‎of this convertible debenture is another testament to our positive momentum.”