Transaction expected to streamline capital structure and ultimately result in the elimination of all Company debt

GAN YAVNE, ISRAEL / ACCESSWIRE / August 3, 2023 / AppYea Inc. (OTC:APYP), a healthtech company focused on the development of accurate wearable monitoring solutions to treat sleep apnea and snoring, today announced the recent signing of an equity financing transaction with a group of strategic investors.

The financing is expected to help accelerate the commercial launch of the Company's DreamIT biofeedback snoring treatment wristband, which is used in combination with its SleepX App. Additionally, the financing is expected to support additional regulatory activities related to the DreamIT PRO wristband and SleepX PRO app for the treatment of Sleep Apnea.

In connection with the transaction, the strategic investors plan to purchase all the outstanding Company notes from prior noteholders, substantially extend their maturity period and amend the conversion price into a fixed conversion price instead of a discounted variable rate mechanism. The new note holders have agreed not to convert their notes until all of the prior notes have been purchased. Most of the original outstanding notes have already been purchased by the strategic investors.

In addition, Mr. Boris (Bary) Molchadsky, the control person of the Company, committed to lock all his shares for at least the next three years, unless required in connection with a potential uplisting to the NYSE.

The total investment by the strategic investors, including both the equity investment and repurchase of outstanding notes and preferred shares is expected to total up to $4 million. The Company ultimately expects these transactions to provide working capital, enhance the capital structure and should ultimately result in the elimination of all Company debt.

"Despite the challenging financial markets, we view this transaction with long-term fundamental investors as a strong endorsement and vote of confidence in the Company's activities and its potential. It is important to note that this transaction significantly enhances our capital structure and should help unlock value for shareholders as we rapidly advance our commercial activities," commented AppYea's Chairman, Boris (Bary) Molchadsky. "I also would like to thank our CFO, Asaf Porat, for leading the entire financing process from inception to its final execution."

"We anticipate this financing transaction will enable the Company to move to the commercial phase of the first product for the treatment of snoring in the coming months, and accelerate the development of follow-on products, including clinical trials, for FDA approval," said Adi Shemer, AppYea's CEO. "I could not be more excited about the outlook for the business, and believe we now have a solid foundation in place to execute on a number of important upcoming milestones."

About SleepX

SleepX is an Israeli research and development company, recently acquired by AppYea. The company had developed a unique product for monitoring and treating sleep apnea and snoring. The technology is protected by several international patents and the company plans to start serial production of its flagship product DreamIT in the coming weeks.

About AppYea

AppYea is a healthtech company commercializing breakthrough wearable technology for the treatment of snoring and developing wearable solutions to diagnose and treat sleep apnea. The company's solutions are based on its proprietary IP portfolio of AI and sensing technologies for the tracking and analysis of breathing patterns, vital signs and other physiological parameters during sleep, designed for greater accuracy at lower and affordable cost.

Cautionary Note Regarding Forward-Looking Statements

Statements included in this press release, which are not historical in nature, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements relating to the future performance of AppYea are subject to many factors including, but not limited to, the sufficiency or working capital and our ability to raise the capital needed to fund our development efforts, timing of product development, FDA approval/clearance of products in development, customer acceptance of our products in the market, the introduction of competitive products, the impact of any product liability or other adverse litigation, commercialization and technological difficulties, and the other risks identified in in our annual report on From 10-K for the year ended December 21, 2022 which was filed on March 31, 2023. Such statements are based upon the current beliefs and expectations of management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof, and we do not undertake any obligation to update any forward-looking statements, whether as a result of future events, new information, or otherwise.

Contact:

Crescendo Communications, LLC
Tel: (212) 671-1020
Email: APYP@Crescendo-IR.com

SOURCE: AppYea Inc.