Callan JMB Announces Partial Exercise of Underwriters’ Over-Allotment Option in Connection with its Initial Public Offering

Rhea-AI Summary

Callan JMB (NASDAQ: CJMB) announced that underwriters have partially exercised their over-allotment option from its initial public offering, issuing an additional 163,569 shares at $4.00 per share, generating additional gross proceeds of $654,276.

Following this partial exercise, the total IPO has reached 1,443,569 shares with aggregate net proceeds of approximately $4.73 million after deducting underwriting discounts, commissions, and offering expenses. Alexander Capital served as the managing underwriter and sole book runner, with Paulson Investment Company and Bancroft Capital as co-managers.

Positive

• Successfully completed IPO raising $4.73 million in net proceeds
• Additional market demand demonstrated through over-allotment exercise
• Multiple underwriter support indicating institutional backing

Negative

• Relatively small IPO size may limit institutional investor interest
• Over-allotment option only partially exercised, suggesting excess demand
• Additional shares from over-allotment create minor dilution for existing shareholders

Insights

Financial Markets Analyst

The partial exercise of Callan JMB's IPO over-allotment option reveals nuanced market dynamics worth examining. The underwriters' decision to exercise only a portion of their option suggests moderate but not overwhelming demand for the company's shares. The additional $654,276 in gross proceeds, while beneficial for the company's capital position, represents a partial utilization of the available over-allotment capacity.

The total net proceeds of $4.73 million positions Callan JMB with a reasonable capital base to execute its business strategy in the healthcare logistics sector. However, the moderate size of the offering and partial over-allotment exercise may indicate cautious investor sentiment toward smaller-cap healthcare logistics companies in the current market environment.

The involvement of multiple underwriters - Alexander Capital as lead, alongside Paulson Investment and Bancroft Capital - demonstrates a structured approach to market-making and distribution, though the relatively modest offering size suggests a targeted rather than broad market approach. The $4.00 per share pricing point and current trading levels will establish important benchmarks for future capital raising activities.

For investors, this transaction structure provides important insights:

• The partial over-allotment exercise suggests balanced price discovery in the IPO process
• The modest offering size indicates a focused growth strategy rather than aggressive expansion plans
• The multi-underwriter syndicate provides broader market support despite the offering's smaller scale

SPRING BRANCH, Texas, Feb. 07, 2025 (GLOBE NEWSWIRE) -- Callan JMB Inc. (NASDAQ: CJMB) (“Callan” or the “Company”), an integrative logistics company empowering the healthcare industry and emergency management agencies through exceptional fulfillment, storage, monitoring, and cold chain logistics services, today announced that the underwriters of its previously announced initial public offering of shares of its common stock (“Common Stock”) have partially exercised their over-allotment option, resulting in the issuance of an additional 163,569 shares of Common Stock (the “Option Shares” or “Share”) at a public offering price of $4.00 per Share for additional gross proceeds of $654,276. After giving effect to the partial exercise of the over-allotment option, an aggregate of 1,443,569 shares of Common Stock have been issued in the initial public offering (the “Offering”) for aggregate net proceeds of approximately $4,729,319.78, after deducting underwriting discounts, commissions and offering expenses payable by the Company.

Alexander Capital L.P. (“Alexander”) acted as the managing underwriter and sole book runner for the Offering, and Paulson Investment Company, LLC and Bancroft Capital, LLC acted as co-managers for the Offering. Sichenzia Ross Ference Carmel LLP served as counsel to the Company, and Sullivan & Worcester LLP served as counsel to Alexander in connection with the Offering.

A registration statement on Form S-1, as amended (File No. 333-282879), relating to the shares of Common Stock described above was filed with the U.S. Securities and Exchange Commission (“SEC”) and was declared effective on February 4, 2025. The Offering was made only by means of a prospectus. A copy of the final prospectus relating to the Offering may be obtained from Alexander Capital, L.P., via email: info@alexandercapitallp.com, or by calling +1 (212) 687-5650, or by standard mail at Alexander Capital L.P., 10 Drs James Parker Blvd, Suite 202 Red Bank, New Jersey 07701, Attention: Equity Capital Markets. In addition, a copy of the final prospectus relating to the Offering may be obtained via the SEC’s website at www.sec.gov.

Before you invest, you should read the prospectus and other documents the Company has filed or will file with the SEC for more complete information about the Company and the Offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations, or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About Callan JMB
Callan JMB is an integrative logistics company empowering the healthcare industry and emergency management agencies through exceptional fulfillment, storage, monitoring, and cold chain logistics services to secure medical materials and protect patients and communities with compliant, safe, and effective medicines. Our combined expertise in supply chain logistics, thermodynamics, biologics, inventory management, regulatory compliance and emergency preparedness is unparalleled in the industry. We offer the excellence in client experience with customizable interfaces, next-level reliability in shipping and environmental sustainability in our specialty packaging.

Forward Looking Statements:
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs, such as “will,” “should,” “would,” “may,” and “could,” are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance, or achievements to be materially different from any anticipated results, performance, or achievements for many reasons. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company's forward-looking statements, please see the Company's Registration Statement Under the Securities Act of 1933 on Form S-1, including but not limited to the discussion under “Risk Factors” therein, which the Company filed with the SEC and which may be viewed at http://www.sec.gov/.

Investor Contacts:
Valter Pinto, Managing Director
KCSA Strategic Communications
CallanJMB@kcsa.com
212.896.1254

FAQ

How much did Callan JMB (CJMB) raise in their February 2025 IPO including over-allotment?

Callan JMB raised approximately $4.73 million in net proceeds from their IPO, including the additional shares from the partial exercise of the over-allotment option.

What was the IPO price for Callan JMB (CJMB) shares in February 2025?

The IPO price for Callan JMB shares was $4.00 per share.

How many additional shares were issued through CJMB's over-allotment option?

The over-allotment option resulted in the issuance of an additional 163,569 shares.

What is the total number of shares issued in Callan JMB's IPO after the over-allotment?

After the partial exercise of the over-allotment option, a total of 1,443,569 shares were issued in the IPO.

Who were the underwriters for Callan JMB's February 2025 IPO?

Alexander Capital was the managing underwriter and sole book runner, with Paulson Investment Company and Bancroft Capital acting as co-managers.