Accredited Solutions, Inc. (OTC: ASII), the parent company of Diamond Creek Water, has announced a pivotal financial strategy development by securing an agreement with all its variable price conversion security holders. This agreement includes a 60-day lock-up and a 6-month leak-out on all conversions, marking a critical step towards the company's objective of redeeming all outstanding variable price convertible instruments in cash. This move underscores the confidence of Accredited Solutions' financing partners in the company's long-term vision and growth strategy, effectively minimizing potential shareholder dilution.
Eduardo Brito, CEO of Accredited Solutions, Inc., highlighted the significance of this agreement, noting it reflects the strong relationships and commitment to shareholder value. The company intends to use proceeds from its forthcoming Reg A offering to redeem these securities, thereby avoiding their conversion into common stock. This strategy is anticipated to lower the cost of capital and significantly reduce dilution for existing shareholders, aligning with the company's ambitious 5-year growth plan targeting $750 million in annual revenue through strategic acquisitions and organic expansion.
The implications of this agreement are profound, not just for Accredited Solutions but for the broader market. It represents a potential shift in managing debt and equity structures, showcasing a proactive capital management approach that could inspire other growth-oriented companies. Particularly in the OTC market, where challenges related to convertible debt and dilution are prevalent, Accredited Solutions' strategy may encourage similar approaches, fostering more stable and appealing investment opportunities.
As Accredited Solutions advances with its growth initiatives, the effectiveness of this agreement in delivering tangible benefits will be closely monitored. The company's upcoming 8-K filing is expected to provide further details, with its progress towards revenue targets and acquisition strategy execution serving as key indicators of this financial maneuver's long-term impact. For more information, visit https://www.diamondcreekwater.com.
