Mitesco Announces $8 Million Debt Restructuring and Expansion of Advisory Board to Drive 2025 Growth

Mitesco, Inc. has finalized the restructuring of over $8 million in debt and senior equity, with plans to eliminate virtually all obligations by December 31, 2024. The company also announced the addition of two professionals to its advisory board and progress in evaluating cloud computing solutions through its Vero Technology Ventures arm, including development of an AI-based sales automation application. CEO Mack Leath stated that the company is working aggressively to eliminate legacy liabilities to reduce costs and position for meaningful expansion in 2025, with holders of over $8 million in debt and senior securities converting into common stock at $4 per share.

Regarding Mitesco's Centore data services division and the newly-formed Vero Technology Ventures subsidiary, Leath explained that the data center business is making progress establishing itself in the market. The company expects to accelerate gains in key accounts and data center operations with the newly appointed directors. The Vero Technology Ventures arm is actively reviewing potential early-stage cloud computing solution vendors and developing its own artificial intelligence-based application set, including the new 'Robo' application that utilizes AI to promote more efficient sales and marketing.

The advisory board expansion includes executives with expertise in data center business development and systems software. Gabriel Crawford brings over 20 years of experience in data center development from site selection to hyperscale and AI co-location leasing, having previously worked with companies including Center Square DC and Digital Fortress. Jim Clifton is a senior sales and marketing executive focused on systems software, data analytics, and innovative implementation, with experience at companies such as Alteryx, VMware, and Citrix. Both have been issued 75,000 shares of restricted common stock for their 12-month advisory term.

The restructuring involves creating a new Series A Amortizing Preferred stock for accredited institutional investors that bears no interest and provides for redemption with cash or restricted common stock, or conversion over the next 36 months. These investors provided funding during FY2024 for the company's rebuilding process, and their continued support is expected to strengthen business plans moving forward. The company's progress in debt elimination and strategic expansion into cloud computing and AI applications represents a significant shift in its operational focus and financial stability.