Wellgistics Health Inc. (NASDAQ: WGRX) announced that President and Interim Chief Executive Officer Prashant Patel and a board director converted approximately $2 million in accrued compensation into common stock at $0.20 per share. The company stated this price represents a premium to recent trading levels.

The conversion resulted in the issuance of approximately 10 million shares of common stock. Additionally, Wellgistics issued 10 million warrants with an exercise price of $0.01 per share as part of the transaction. The warrants are exercisable immediately and expire in five years.

The company's disinterested board directors approved the conversion. The newly issued shares are subject to a six-month lock-up agreement restricting transfers, with customary exceptions.

"I believe Wellgistics has the potential to build upon its vision and bring long lasting value to all healthcare stakeholders," Patel said in the announcement. "This conversion reinforces my unwavering belief in our team, our mission, and the transformative impact we will have on the future of healthcare."

Wellgistics operates a health information technology platform that integrates pharmacy dispensing optimization and blockchain-enabled smart contracts. The company connects over 6,500 pharmacies and 200 manufacturers through its network, providing wholesale distribution, digital prescription routing, and direct-to-patient delivery services.

The information is based on a company press release statement.