AppYea Announces Equity Financing Transaction to Accelerate Commercial Launch

Transaction expected to streamline capital structure and ultimately result in the elimination of all Company debt

GAN YAVNE, ISRAEL / ACCESSWIRE / August 3, 2023 / AppYea Inc. (OTC:APYP), a healthtech company focused on the development of accurate wearable monitoring solutions to treat sleep apnea and snoring, today announced the recent signing of an equity financing transaction with a group of strategic investors.

The financing is expected to help accelerate the commercial launch of the Company's DreamIT biofeedback snoring treatment wristband, which is used in combination with its SleepX App. Additionally, the financing is expected to support additional regulatory activities related to the DreamIT PRO wristband and SleepX PRO app for the treatment of Sleep Apnea.

In connection with the transaction, the strategic investors plan to purchase all the outstanding Company notes from prior noteholders, substantially extend their maturity period and amend the conversion price into a fixed conversion price instead of a discounted variable rate mechanism. The new note holders have agreed not to convert their notes until all of the prior notes have been purchased. Most of the original outstanding notes have already been purchased by the strategic investors.

In addition, Mr. Boris (Bary) Molchadsky, the control person of the Company, committed to lock all his shares for at least the next three years, unless required in connection with a potential uplisting to the NYSE.

The total investment by the strategic investors, including both the equity investment and repurchase of outstanding notes and preferred shares is expected to total up to $4 million. The Company ultimately expects these transactions to provide working capital, enhance the capital structure and should ultimately result in the elimination of all Company debt.

"Despite the challenging financial markets, we view this transaction with long-term fundamental investors as a strong endorsement and vote of confidence in the Company's activities and its potential. It is important to note that this transaction significantly enhances our capital structure and should help unlock value for shareholders as we rapidly advance our commercial activities," commented AppYea's Chairman, Boris (Bary) Molchadsky. "I also would like to thank our CFO, Asaf Porat, for leading the entire financing process from inception to its final execution."