New York, June 5, 2026, 14:05 (EDT)
- Vivos shares jumped almost 36% on strong volume after striking a debt-for-equity deal with Streeterville Capital.
- The deal targets stockholders’ equity, which is a Nasdaq listing requirement the company hasn’t met.
- The deal is still waiting on new equity financing, so there’s still some risk for dilution and possible delisting.
Vivos Therapeutics shares surged Friday after the sleep apnea device company said its main lender will exchange as much as $4.5 million in debt for equity. The company said the deal is aimed at reducing balance sheet stress and helping it stay on the Nasdaq.
The stock jumped 35.7% to 94 cents at 1:49 p.m. EDT after reaching as high as $1.35 earlier. Volume topped 62 million shares. The company’s market cap was about $13.8 million.
This is important right now because Vivos is facing a Nasdaq compliance deadline. Back in April, the company disclosed in a filing that it had received a warning from Nasdaq for failing to meet Listing Rule 5550(b)(1), which sets a minimum stockholders’ equity of $2.5 million. Stockholders’ equity is the remainder for owners after taking liabilities out of assets. As of Dec. 31, 2025, Vivos had reported negative stockholders’ equity of around $1.55 million.
Streeterville Capital LLC is set to swap debt for a mix of perpetual, nonconvertible preferred stock and common shares under a new agreement. The preferred stock ranks ahead of common stock in some claims on the company, but since it’s nonconvertible, those preferred shares don’t convert to common under this deal.
Vivos said Streeterville will pause demands for debt repayment for 90 days and stop selling Vivos securities for 60 days after the exchange goes into effect. The company said the planned debt-for-equity conversion and new equity raise aim to boost stockholders’ equity and help its Nasdaq remediation plan.
There’s a catch—the exchange hinges on Vivos closing at least one qualifying equity financing that the company signs off on. Vivos said it can’t guarantee the financing will happen or that any debt will get swapped.
Vivos is making the balance sheet a bigger focus after a change to its business. In May, the company said first-quarter revenue jumped 70% to around $5.1 million, driven by sleep-testing services and the June 2025 buy of The Sleep Center of Nevada. Vivos also posted a $7.8 million net loss for the quarter, $2.1 million in cash, and a $1.1 million deficit in stockholders’ equity as of March 31.
Chief Executive Kirk Huntsman said in a May update the Nevada deal and shift in the business model “continues to drive patient volume and top-line revenue.” Huntsman also said the company was trying to “secure new funding” and “restructure our debt.” BioSpace
Vivos shares rallied on their own news, not as part of a wider sleep-apnea play. ResMed edged up 0.7%. Inspire Medical Systems dropped 1.7%. Small caps lagged too, with the iShares Russell 2000 ETF down 2.8%. Most of the action in Vivos was about the company itself.
Market pricing may be counting on relief too soon. If new equity gets issued, current holders could see their stakes shrink. Staying on Nasdaq also depends on listing standards. Vivos warned back in April that a delisting would hit its business, operations and reputation.
