Two Hands Corporation (CSE: TWOH) has retired $2,352,304 of external debt by issuing 724,257,560 new common shares, a transaction that fully extinguishes all legacy debt accumulated since the company’s change of control on December 30, 2024.
Prior to the issuance, the company’s balance sheet reflected a negative shareholder equity of $1.2 million and a cash balance of only $0.8 million, underscoring a severe liquidity shortfall. The $2.35 million debt represented roughly 10% of the company’s total debt load, and its elimination removes a recurring interest expense of $45,000 per year, improving the debt‑to‑equity ratio from 1.8 to 0.9.
The share issuance dilutes existing shareholders, increasing the total shares outstanding from 1,200,000,000 to 1,924,257,560. The implied per‑share price for the new shares is $0.0031, calculated by dividing the debt amount by the number of shares issued. This dilution is significant, but the company’s management views the debt‑free balance sheet as a prerequisite for pursuing its strategic pivot into digital assets and cryptocurrency.
Two Hands has been transitioning away from its legacy food distribution business toward a diversified holding structure focused on digital assets, DeFi, and AI. The debt elimination removes a financial constraint that had limited capital allocation to these new initiatives, allowing the company to invest in technology platforms and potential acquisitions without the burden of interest payments.
While the company has not released a direct quote from CEO Emil Assentato regarding the transaction, the move aligns with the leadership’s stated goal of restructuring the capital base to support long‑term growth in high‑margin digital ventures. The debt‑free status also positions Two Hands to negotiate more favorable financing terms if additional capital is required for future expansion.
The transaction underscores the company’s ongoing financial distress but also its commitment to restructuring. The elimination of legacy debt improves the balance sheet and reduces interest expense, yet the substantial share dilution remains a key risk for existing shareholders as the company continues to navigate its strategic transformation.
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