Item 1.02
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Entry into Termination of a Material Definitive Agreement.
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Redemption of Certain Previously Issued Convertible Notes
As a part of its recently announced initiative to eliminate its convertible note financings, on May 13, 2020 Mitesco, Inc. f.k.a. True Nature Holding, Inc. (the “Company”) paid in full a previously issued convertible note with Power Up Lending Group, LTD (“Power Up”). The Power Up Convertible Bridge Note dated November 11, 2019, whose face amount was $73,000 was paid in full for $115,980, including all accrued interest. There are no further notes outstanding with Power Up Lending, LTD.
Settlement of Certain Legal Matters and Settlement of Obligations
The Company has reduced its liabilities by approximately $345,000 including interest through the following transactions, resulting in the use of $35,000 in cash.
National Council for Science and the Environment, Inc.(“NCSE”)
On September 23, 2016, the Company had agree to settle this $177,270 obligation, which resulted from issues with the prior educational software business in 2015, with an agreement to pay $48,500 to NCSE if paid by November 4, 2016, and $75,000 if paid later. The Company had not paid the amounts and had recorded the obligation at $75,000 at March 31, 2020.
On May 15, 2020 the Company entered into a settlement agreement with NCSE whereby the Company paid $5,000 in cash for full settlement and release of all obligations. As such, the Company has no further obligations to NCSE.
Carlton Fields Jorden Burt, P.A.(“Carlton Fields”)
This action was filed in May 2017 by a law firm that had represented the Company prior to 2016 with the intent of collecting past due invoices in the aggregate amount of $241,828. The Company had recorded a liability in the amount of $266,319 on its balance sheet at March 31, 2020.
On May 15, 2020 the Company entered into a settlement agreement with Carlton Fields whereby the Company paid $30,000 in cash for full settlement and release of all obligations. As such the Company has no further obligations here.