IMAC Holdings Acquires Assets of Theralink to Continue Precision Medicine Business

Rhea-AI Summary

IMAC Holdings, Inc. (NASDAQ: BACK) has acquired the assets of Theralink in a settlement agreement, excluding certain assets, to resolve outstanding debt issues. A merger with Theralink is no longer necessary, and a termination agreement has been entered into. The Registration Statement on Form S-4 has been withdrawn. The acquisition aims to continue the precision medicine business, focusing on advancements in breast cancer diagnostics.

Positive

• The acquisition of Theralink's assets allows BACK to expand its precision medicine business.
• The settlement agreement resolves outstanding debt issues for Theralink and BACK.
• The termination of the merger agreement streamlines the process for shareholders and business operations.
• Transitioning key employees and utilizing proteomic analysis expertise positions BACK to capitalize on precision medicine success.

Negative

• The lengthy regulatory approval process for the transaction may have impacted operational efficiency and shareholder confidence.

Insights

Financial Analyst

IMAC Holdings, Inc.'s strategic move to acquire Theralink's assets rather than pursuing a full merger is a cost-efficient decision, especially considering the cancellation of the merger avoids a complex regulatory process. This transaction provides BACK with immediate access to valuable diagnostics technology, which could potentially enhance their product portfolio and accelerate their entry into the breast cancer diagnostics market. The decision to issue preferred stock in the future based on a third-party valuation ensures that current shareholders are not immediately diluted and that the value of Theralink will be fairly assessed. From a financial perspective, this could protect shareholder value in the short-term while providing growth opportunities in the long-term. As the market for precision medicine is expanding, BACK's move could position them well within a high-growth sector, potentially increasing their market share and generating future revenue streams. The emphasis on commercialization indicates a shift towards revenue generation, which is an important factor for investors seeking growth. If BACK manages to seamlessly integrate Theralink's technology and staff, they could leverage existing infrastructure and expertise to optimize the new diagnostics services. For investors, the key factors to watch will be the speed of commercialization, the market response to the new services and the integration of Theralink’s team and technology into BACK's business model.

Healthcare Industry Analyst

The acquisition of Theralink’s assets by BACK is notable for its implications in the precision medicine and diagnostics sector. Theralink's proteomic analysis technology, specialized in breast cancer diagnostics, is likely to give BACK a competitive edge in the personalized healthcare market. As precision medicine becomes increasingly important in oncology, possessing advanced diagnostic capabilities can allow for more targeted and effective treatments. BACK's move to streamline the acquisition process and focus on commercialization of services could expedite market entry and adoption, an essential factor in the fast-paced medical technology field. The potential integration of Theralink’s diagnostic services into BACK's offerings aligns with industry trends towards consolidating personalized treatment options, which could result in enhanced patient outcomes and stronger demand for BACK's expanded services. One of the main challenges for BACK will be the transition of Theralink's key employees; retaining talent is critical to ensuring the continuity and advancement of the acquired technology. Investors will be interested in how BACK manages this transition and how quickly they can scale the services. Furthermore, they should monitor the execution of the commercial strategy and market penetration, as these will be important for long-term profitability and success in the competitive healthcare market.

FRANKLIN, Tenn., May 07, 2024 (GLOBE NEWSWIRE) -- On May 1, 2024, as previously announced, pursuant to that certain Settlement and Release Agreement, by and between IMAC Holdings, Inc. (NASDAQ: BACK) (“BACK”) and Theralink Technologies, Inc. (“Theralink”), BACK acquired the assets of Theralink, other than certain excluded assets, in settlement of the default by Theralink of certain outstanding debt and BACK’s agreement to issue certain shares of preferred stock of BACK to Theralink and/or certain holders of debt of Theralink, as applicable, in the future following the completion of a third party valuation of Theralink’s business.

With BACK already in possession of such assets of Theralink, and a merger with Theralink no longer necessary to acquire such assets, on May 6, 2024, BACK, IMAC Merger Sub, Inc. (“Merger Sub”) and Theralink entered into a Termination Agreement, which immediately terminated the Agreement and Plan of Merger, dated May 26, 2023, by and between BACK, Merger Sub and Theralink (“Merger Agreement”).

BACK is formally withdrawing the corresponding Registration Statement on Form S-4, in connection with such termination of the Merger Agreement.

“Considering the lengthy regulatory approval process the transaction has already incurred, BACK found a more efficient direction for shareholders going forward. We believe this settlement allows Theralink’s incredible advancements for breast cancer diagnostics to survive and thrive in its new home at BACK, as commercialization of the services kicks off in an unobstructed direction,” said Jeff Ervin, Chief Execuitve Officer of IMAC Holdings, Inc. “We are in the process of transitioning key employees to stabilize the business operations and capitalize on the team’s significant proteomic analysis and precision medicine success.”

About IMAC Holdings, Inc.

IMAC Holdings, Inc. is a clinical research and commercialization company focused on Innovative Medical Advancements and Care in the oncology, neurological, and orthopedic medical specialties. For more information visit www.imacholdings.com.

IMAC Investor Contact:
jeff@imacholdings.com

FAQ

What assets did IMAC Holdings acquire from Theralink?

IMAC Holdings acquired the assets of Theralink, excluding certain assets, in a settlement agreement.

What is the stock symbol of IMAC Holdings?

The stock symbol of IMAC Holdings is BACK.

When did the acquisition of Theralink's assets take place?

The acquisition of Theralink's assets by IMAC Holdings took place on May 1, 2024.

Who is the Chief Executive Officer of IMAC Holdings?

Jeff Ervin is the Chief Executive Officer of IMAC Holdings, Inc.