SELECTIS HEALTH, INC. Material Event - What Happened

Hey everyone, let's break down some important news from SELECTIS HEALTH, INC. in a way that makes sense, without all the confusing financial talk. Think of this as me explaining it to you over a cup of coffee.

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1. What happened? (The Big News)

Okay, so here's the big news: SELECTIS HEALTH, INC. has reached a new agreement with its lenders to change the terms of some significant loans (called "promissory notes") that the company owes.

This means they've modified their existing debt, which is a pretty significant development that could change things for the company.

2. When did it happen?

This all went down on December 30, 2025, with the changes officially becoming effective on December 31, 2025.

3. Why did it happen? (The Story Behind It)

So, why did this happen? Well, it boils down to the company needing more time and flexibility to repay its existing debt. SELECTIS HEALTH had about $1.775 million in these specific loans outstanding. To get the lenders to agree to more time, the company made some concessions:

• Extended Repayment Deadline: The original deadline to repay these loans was approaching, and the company needed an extension.
• Higher Interest Rate: To compensate lenders for the extension, the interest rate on these loans was increased.
• Lender Influence: The lenders also gained more direct influence over the company's direction by getting seats on the Board of Directors.

Basically, the company needed to manage its debt obligations and avoid a potential default, so they negotiated new terms with their lenders. The agreement mentions that the new repayment deadline is tied to either a specific date or the company completing a "Qualified Transaction," which suggests they might be looking for a major deal or new funding to pay off these loans.

4. Why does this matter? (The "So What?")

Alright, so why should you care about this? What's the big deal? This isn't just some small detail; it could really change things for SELECTIS HEALTH because:

• Breathing Room, But at a Cost: This agreement gives SELECTIS HEALTH more time to repay its debt, which is good as it avoids an immediate financial crisis. However, it comes at a higher cost, as the interest rate on these loans has increased from 11% to 13% per year. This means the company will be paying more in interest expenses.
• Lender Influence: The appointment of two new board members, Kent Lund and Lance Baller, who are likely connected to the lenders, means the lenders will have a more direct say in the company's strategic decisions.
• Future Funding Strategy: The mention of a "Qualified Transaction" as a way to repay the notes suggests the company is actively pursuing a significant event (like a major sale, merger, or new equity financing) to resolve its debt situation.
• Warrant Extension: The extension of the expiration date for stock options (warrants) previously given to the lenders means they have a longer window to potentially profit if the company's stock price increases.

5. Who is affected?

Who feels the ripple effect of this? Let's break it down:

• For Employees: While not directly impacted, the company's financial stability and strategic direction are influenced by debt management. If the company successfully navigates this, it's good for long-term stability.
• For Customers/Patients: For people who use SELECTIS HEALTH's products or services, there's likely no immediate change. This is primarily a financial and corporate governance event.
• For Investors/Shareholders: If you own stock in SELECTIS HEALTH, this news could:
  • Provide Relief: It prevents an immediate default on debt, which is generally positive.
  • Signal Financial Strain: The need for an extension and higher interest rates might indicate the company is facing financial challenges or has limited access to other, cheaper forms of financing.
  • Dilution Potential: The extended warrants mean there's a longer period during which new shares could be issued if the lenders exercise their options, potentially diluting the value of existing shares.
  • Governance Changes: The new board members could shift the company's priorities or strategic focus.
• For Competitors: Other companies in the health industry might be watching this closely to understand SELECTIS HEALTH's financial health and strategic direction, especially if the "Qualified Transaction" involves a significant market move.

6. What happens next? (The Road Ahead)

So, what's the game plan from here? What can we expect?

SELECTIS HEALTH will now operate under these new debt terms. Their immediate focus will likely be on:

• Repaying the Notes: They have until February 28, 2026 (or potentially longer under certain conditions) to repay the $1.775 million in principal plus the new 13% interest.
• Pursuing a "Qualified Transaction": The company will likely be actively working towards a major deal or financing event that would allow them to pay off these loans.
• Board Integration: The two new board members, Kent Lund and Lance Baller, will join the board effective January 1, 2026, and will contribute to the company's strategic decisions.

We'll need to keep an eye on any announcements regarding their financial performance, progress on a "Qualified Transaction," and how the new board members influence company strategy.

7. What should investors/traders know? (Your Takeaways)

For those of you who trade stocks or have money invested, here's the quick rundown of what to keep in mind:

• Mixed Signals: This event is a bit of a mixed bag. It's good that a potential default was avoided, but the terms (higher interest, board seats for lenders) suggest the company is under some financial pressure.
• Short Repayment Window: The new maturity date of February 28, 2026, is relatively soon. Investors should watch closely for how the company plans to meet this obligation.
• Watch for the "Qualified Transaction": This is a key phrase. Any news about a major deal, sale, or new funding could significantly impact the company's future and stock price.
• Governance Matters: The addition of lender-affiliated board members means their interests will be strongly represented.
• Do Your Homework: This news is one piece of the puzzle. It's always a good idea to look at the company's overall financial health and future plans before making any big decisions.

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Hopefully, this helps you understand what's going on with SELECTIS HEALTH, INC. and why it matters!