ProSomnus Sleep Technologies Takes Strategic Action to Position Company for Long-Term Success - Seite 2

Minimal Expected Operational Impact to the Business
Importantly, the terms of this financial restructuring enable the Company to maintain normal business operations for customers and suppliers during and after this restructuring process. The Company expects customers to continue experiencing its best in class, rapid, turnaround times, predictable on-time order fulfillment, and exceptional device quality and performance. ProSomnus expects to continue purchasing supplies from vendors commensurate with demand for our devices.

Improvements to Financial Condition
The restructuring plan, which is expected to deliver an aggregate of $20 million of new capital, is being led by SMC Holdings II, LP, CETUS Capital VI, LP, Destinations Global Fixed Income Opportunities Fund, Cedarview Opportunities Masters Fund, LP and Riverpark Strategic Income Fund, each existing lenders to and investors in the Company, each of which has also consented to convert the Company’s current debt owed into equity upon exit from the restructuring. Further, the amount of existing senior secured debt will be reduced, and amortization of scheduled repayments will be deferred. Under the restructuring plan the Company expects to reduce its debt by approximately 60%.  

Amounts due to employees, trade creditors, vendors and customers are not expected to be impacted by the restructuring. The completion of the restructuring plan will result in the Company becoming a private company, thereby eliminating $4 million to $6 million of annual recurring public company costs its public company obligations. In aggregate, the reduced public company expenses, along with the capital infusion, is expected to allow the Company to direct greater resources and capital to support and grow operations as it continues to offer patients and customers a viable alternative to current sleep apnea treatments.

Additional Information
Filings and other information related to the proceedings are available on a separate website administrated by the Company’s claims agent, at www.kccllc.net/prosomnus.

About ProSomnus
ProSomnus is the leading non-CPAP therapy for the treatment of Obstructive Sleep Apnea, a serious medical disease affecting over 1 billion people worldwide, that is associated with comorbidities including heart failure, stroke, hypertension, morbid obesity, and type 2 diabetes. ProSomnus intraoral medical devices are engineered to precisely track the treatment plan and anatomy for each patient. Non-invasive, patient preferred and easy to use, ProSomnus devices have demonstrated excellent efficacy, safety, adherence, and overall outcomes in a growing body of clinical investigations. ProSomnus precision intraoral devices are FDA-cleared, patented, and covered by commercial medical insurance, Medicare, TRICARE and many Government-sponsored healthcare plans around the world, representing over 200 million covered lives. To learn more, visit www.ProSomnus.com.