SOURCE: Rennova Health, Inc.

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October 30, 2017 09:20 ET

Rennova Health, Inc. Announces $4,000,000 Funding From Private Placement of Convertible Preferred Stock

WEST PALM BEACH, FL--(Marketwired - October 30, 2017) - Rennova Health, Inc. (OTCQB: RNVA) (OTCQB: RNVAW), a vertically integrated provider of industry-leading diagnostics and supportive software solutions to healthcare providers, which opened its first rural hospital in Oneida, Tennessee on August 8, 2017, announces that it has entered into a Securities Purchase Agreement (the "Purchase Agreement") with certain existing institutional investors of the Company. Pursuant to the Purchase Agreement, the Company has agreed to issue $4,960,000 in aggregate stated value of Convertible Preferred Stock. The Purchase Agreement contains certain customary representations, warranties and covenants. Proceeds from the Purchase Agreement are expected to be $4,000,000. The closing of the offering is expected to occur on or about October 30, 2017 and is subject to, among other things, receiving certain consents and other customary closing conditions.

The Preferred Stock may be converted into common stock at any time at a conversion price equal to the lower of 85% of the market price or $1.00. The Preferred Stock does not include any security interest in assets of the Company or any fixed dividend rights and the Company is not required to file a registration statement for the shares of common stock underlying the Preferred Stock.

The securities offered and sold in the private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration under the Securities Act and applicable state securities laws.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any securities of the Company.

"This equity investment combined with the granting of our previously announced CMS number for our hospital, enabling us to bill and collect for hospital services rendered, is expected to provide adequate capital to complete the repayment of certain debts and enable the Company to get its current business to cash flow break-even without need of further investment," said Seamus Lagan, CEO of Rennova Health, Inc. "We have worked to complete the turnaround and refocus of our business model and have throughout 2017 stated our belief that we could achieve a cash flow break-even before the year end. We continue to believe that will be achieved and look forward to continued growth of existing businesses and consideration of further acquisitions in the rural hospital sector."

About Rennova Health, Inc.
Rennova provides industry-leading diagnostics and supportive software solutions to healthcare providers, delivering an efficient, effective patient experience and superior clinical outcomes. Through an ever-expanding group of strategic brands that work in unison to empower customers, we are creating the next generation of healthcare. For more information, please visit www.rennovahealth.com.

Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Additional information concerning these and other risk factors are contained in the Company's most recent filings with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

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