An investor and former member of West Palm Beach, Fla.-based Rennova Health's board now owns a controlling stake of the hospital operator, according to WBIR, which cited a July 8 filing with the Securities and Exchange Commission.
Christopher Eric Diamantis now owns a 51 percent stake in Rennova Health. The SEC filings show Mr. Diamantis will receive 22,000 shares of preferred stock at a rate of $1,000 per share.
Mr. Diamantis will take a majority stake in the company in exchange for forgiving more than $18 million Renova owed him, according to WBIR.
Mr. Diamantis was one of four members of Rennova's board, but he resigned Feb. 26. Mr. Diamantis had guaranteed loans and lent Rennova millions of dollars for purchases throughout the last two years.
Rennova's hospitals have faced financial challenges in recent years. In a June financial filing, Rennova said that it owed creditors $49 million and spent $2 for each $1 it makes.
In addition, Rennova's hospitals have experienced payroll delays and critically low supplies. Rennova closed its hospital in Jamestown, Tenn., in June 2019.