Stock Ticker $RDGL - News - ivos Inc. Issues Letter to Its Shareholders

Richland WA, Feb. 01, 2019 (GLOBE NEWSWIRE) -- Vivos, Inc. (OTC PINK: RDGL). The Board of Directors of Vivos Inc. (RDGL), a pharmaceutical company in the process of researching and developing minimally invasive treatments to combat cancer in animals and humans, addresses its shareholders through this press release.

2018 was very challenging and yet a year full of accomplishments, which have been detailed in previous press releases. Specifically, we are looking forward to the opening of our pilot vet clinic in Kennewick, Washington this coming April, now that we have the FDA classification to use IsoPet® to treat solid tumors in animals. We expect the opening of the treatment center at Vista Clinic to be covered by significant press which should result in good publicity.

Unfortunately, the company is not where it needs to be financially in order to proceed with further studies, ramp up new vet clinics, and eventually proceed to human trials. As many shareholders know, our financial troubles were due to the legacy toxic debt created before Dr. Korenko became CEO. Since last autumn, we worked tirelessly to negotiate our way out of this debt and obtain enough equity financing to get out from under the mercy of the debt holders. That we were able to accomplish this goal is a tribute to the skill and hard work of our officers, especially our CEO, Dr. Mike Korenko and our Corporate Advisor, George Sharp.

Unfortunately, the conversion of our debt to equity has made our current share structure untenable. Currently there are funders looking to help raise the $5 million required for our continued progress through equity financing. However, these funders are concerned about the current share structure. There is still much stock for sale from our converted toxic debt, even though the rate of selling is controlled by agreement. Vivos has always resisted executing a reverse split, as it has no desire to dilute or wipe out the retail shareholders or recent equity financiers. 

After much discussion, deliberation and hand wringing, we have decided on a course of action that includes a gentle reverse split of one new share for eight old shares coupled with a reduction in the number of authorized shares. This decision has received the approval of the recent equity funders who supplied the necessary funds to make Vivos a viable company again. We believe that under the proposed reverse split ratio, the current shareholders will not only maintain a strong position in Vivos, but that they will benefit for the following reasons;

• Shareholder holdings will not be diluted or wiped out under a one for eight split
• Selling by those who hold shares converted from debt will be tempered
• Equity funding can be obtained under much more favorable terms now that there are fewer shares to sell
• The reduced number of shares for sale will enable the share price to rise since a massive number of shares will not be offered by the lenders who convert their debt
• The ability of the company to perform with new financing will increase shareholder value

Under the proposed reverse split, the number of shares outstanding on a fully diluted basis will be reduced to about 250 million shares and the overhang of converted debt to shares will be reduced to about 60 million shares. Under the previously announced Path Forward Agreement negotiated with the toxic lenders last autumn, those shares cannot be sold at a rate of more than 15% per month. Also, the authorized number of shares will be reduced to 950 million, although we do not expect it to be necessary to issue that many new shares in the foreseeable future.

Reducing the number of new shares to be sold every month should reduce the selling pressure. This should allow the price to rise. Of course, there are no guarantees. Still, there is a tremendous amount of interest in Vivos shares as is evidenced by the absorption of the large number of shares sold by the toxic lenders over the last year. Vivos is now committed to avoiding toxic debt financing.

The management of Vivos thanks its loyal shareholders for their support. We are trying to increase shareholder value and to build a legacy with a viable treatment for cancerous tumors with little residual effect. We strongly feel that we are at the cusp of great things.

On behalf of the Board of Directors,

Carlton M. Cadwell, D.D.S.
Chairman of the Board

About Vivos Inc. (RDGL)

Vivos, Inc. is a pharmaceutical company researching and developing minimally invasive treatments to combat cancer in humans and animals. It has developed an Yttrium-90 based brachytherapy injectable device, for the treatment of tumors in animals (IsoPet®) and in humans (Radiogel™). Brachytherapy uses highly localized radiation to destroy cancerous tumors by placing a radioactive isotope directly inside the treatment area using the company’s proprietary hydrogel formulation. The injection delivers therapeutic radiation from within the tumor without the entrance skin dose and associated side effects of treatment that characterize external-beam radiation therapy. This feature allows safe delivery of higher doses needed for treating both non-resectable and radiation-resistant cancers.