Genesis Holdings, Inc. (OTCID: GNIS) announced the completion of a debt-to-equity restructuring, converting two-thirds of outstanding convertible promissory notes into newly designated Series D Preferred Stock. The exchange, finalized as Phase I of the balance sheet restructuring announced in May 2026, aims to capitalize legacy debt and reposition the company's capital structure ahead of its next growth phase.
CEO Oscar Brito emphasized the restructuring's impact, stating, "This restructuring fundamentally cleans up our balance sheet. We have taken a substantial majority of our outstanding convertible debt and capitalized it into preferred equity. Just as importantly, in doing so we have eliminated the conversion discounts, price-based kickers, and other dilutive features that came with the legacy convertible notes - which materially reduces our go-forward cost of capital and removes a significant overhang for our shareholders."
As a result, the company's pro forma balance sheet as of June 30, 2026, shows total stockholders' equity of approximately $901,550, compared to a deficit as of December 31, 2025 - a swing of roughly $3.0 million. Total liabilities were reduced to approximately $42,745 from convertible debt and other current liabilities. The pro forma balance sheet, available in the press release, is unaudited and may differ from final financial statements.
Brito added, "With our capital structure now substantially cleaned up, we are entering the next phase of our business from a position of real strength. This restructuring was completed ahead of the planned launch of our first digitally structured funds through our partnership with Aurami Capital and Miami Real Investment (MRI), and we believe it positions Genesis and our partners to engage investors from a much stronger footing."
The restructuring follows the strategic partnership between Travaleo, Genesis' wholly owned digital investment platform, and Aurami Capital, announced in April 2026. Under that partnership, the companies have been working together - including with established manager relationships in Mexico - to bring branded luxury real estate investment opportunities to market through structured, digitally structured fund offerings. Although no assurance can be given, the company expects to launch its first two funds under the Travaleo / Aurami Capital partnership within the next 45 days.
Genesis Holdings is a publicly traded holding company focused on the development, acquisition, and management of operating businesses and real-asset-related initiatives. The company emphasizes disciplined capital allocation, sound governance practices, and long-term value creation for shareholders. More information is available at https://www.regen.digital/.
