Healthy Choice Wellness Corp. Announces Closing of $4.0 Million Initial Public Offering

Rhea-AI Summary

Healthy Choice Wellness Corp. (NYSEAM: HCWC) has successfully closed its initial public offering, raising approximately $4.0 million in gross proceeds. The company offered 400,000 shares of Class A common stock at $10.00 per share. Trading began on September 16, 2024, under the symbol 'HCWC'. The underwriters have a 45-day option to purchase up to 60,000 additional shares to cover over-allotments. Maxim Group acted as the sole book-running manager for the offering.

HCWC plans to use the net proceeds for general corporate purposes, including working capital and potential strategic acquisitions. The company focuses on providing consumers with healthier daily choices in nutrition and lifestyle alternatives.

Positive

• Successfully raised $4.0 million in gross proceeds through IPO
• Shares began trading on NYSEAM under symbol HCWC
• Underwriters have option to purchase additional 60,000 shares
• Funds to be used for working capital and potential strategic acquisitions

Negative

• Potential dilution for existing shareholders due to new share issuance
• Class B common stock subject to 90-day lock-up period

Insights

Financial Analyst

Healthy Choice Wellness Corp.'s $4.0 million IPO marks a significant milestone, but it's relatively small in scale. The $10 per share price and 400,000 shares offered suggest cautious market entry. The additional 60,000 share option could boost proceeds by $600,000 if exercised. The dual-class stock structure, with Class B shares converting to Class A after 90 days, indicates a strategy to maintain insider control initially. Maxim Group as sole book-runner implies institutional interest. The broad use of proceeds for "general corporate purposes" lacks specificity, potentially signaling unclear growth strategy. Investors should watch for post-IPO performance and any strategic acquisitions to gauge the company's trajectory in the competitive wellness sector.

Market Research Analyst

HCWC's IPO taps into the growing wellness industry, valued at $1.5 trillion globally in 2021. The company's focus on "healthier daily choices" aligns with consumer trends towards preventative health and lifestyle improvements. However, the small IPO size may limit HCWC's ability to scale quickly in this competitive market. The NYSEAM listing provides visibility but may not attract the same level of investor attention as major exchanges. The 90-day lock-up for Class B shares could lead to volatility when it expires. Key metrics to watch include customer acquisition costs, retention rates and the company's ability to differentiate its offerings in a crowded market. HCWC's success will likely depend on effective marketing, strategic partnerships and innovative product development to capture market share.

Legal Expert

The IPO's compliance with SEC regulations, including the effective S-1 registration and final prospectus filing, demonstrates proper legal due diligence. The dual-class stock structure (Class A and B) is a notable governance feature, potentially giving founders or early investors disproportionate control. This structure has faced criticism from corporate governance advocates but remains legal. The 45-day over-allotment option is standard practice, providing price stabilization post-IPO. The broad "general corporate purposes" language for use of proceeds offers flexibility but less transparency for investors. The disclaimer about not constituting an offer to sell in certain jurisdictions is important for regulatory compliance. Investors should carefully review the prospectus for risk factors and detailed governance structures before making investment decisions.

HOLLYWOOD, FL, Sept. 17, 2024 (GLOBE NEWSWIRE) -- Healthy Choice Wellness Corp. (“HCWC” or the “Company”) (NYSEAM: HCWC), a holding company focused on providing consumers with healthier daily choices with respect to nutrition and other lifestyle alternatives, announced today the closing of its previously announced initial public offering of 400,000 shares of the Company’s Class A common stock, par value $0.001 per share, at an offering price of $10.00 per share, for gross proceeds of approximately $4.0 million, before deducting underwriting discounts and offering expenses (the “Offering”). In addition, HCWC has granted the underwriters a 45-day option to purchase up to an additional 60,000 shares of Class A common stock to cover over-allotments at the initial public offering price, less the underwriting discount.

The shares of Class A common stock began trading on the NYSEAM on September 16, 2024, under the symbol “HCWC”. The Class B common stock will not be listed on an exchange and will be subject to a 90-day lock-up period from the date of the distribution. Upon the expiration of the lock-up period, such shares of Class B common stock will automatically convert into shares of Class A common stock.

Maxim Group LLC acted as the sole book-running manager in connection with the Offering.

The Company intends to use the net proceeds of this Offering for general corporate purposes, which may include, among other things, funding for working capital needs and potential strategic acquisitions.

A registration statement on Form S-1 (File No. 333-274435) relating to the Offering was filed with the U.S. Securities and Exchange Commission (“SEC”), as last amended on September 13, 2024, and subsequently declared effective by the SEC on September 13, 2024. A final prospectus relating to the Offering was filed with the SEC on September 16, 2024, and is available on the SEC’s website at http://www.sec.gov. The Offering is being made only by means of a prospectus forming part of the effective registration statement. Electronic copies of the prospectus relating to this Offering may also be obtained from Maxim Group LLC, 300 Park Avenue, 16th Floor, New York, New York 10022, Attention: Syndicate Department, by telephone at (212) 895-3745 or by email at syndicate@maximgrp.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Healthy Choice Wellness Corp.

Healthy Choice Wellness Corp. is a holding company focused on providing consumers with healthier daily choices with respect to nutrition and other lifestyle alternatives. 

Through its wholly owned subsidiaries, the Company operates:

		Ada’s Natural Market, a natural and organic grocery store offering fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products and natural household items (www.Adasmarket.com).
		Paradise Health & Nutrition’s three stores that likewise offer fresh produce, bulk foods, vitamins, and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products and natural household items (www.ParadiseHealthDirect.com).
		Mother Earth’s Storehouse, an organic and health food and vitamin store in New York’s Hudson Valley, which has been in existence for over 40 years (www.MotherEarthStorehouse.com).
		Greens Natural Foods’ eight stores in New York and New Jersey, offering a selection of 100% organic produce and all-natural, non-GMO groceries and bulk foods; a wide selection of local products; an organic juice and smoothie bar; a fresh foods department, which offers fresh and healthy “grab & go” foods; a full selection of vitamins & supplements; as well as health and beauty products. (www.Greensnaturalfoods.com).
		Ellwood Thompson’s, an organic and natural health food and vitamin store located in Richmond, Virginia (www.ellwoodthompsons.com). GreenAcres Market, an organic and natural health food and vitamin chain with five store locations in Kansas and Oklahoma. GreenAcres Market is a chain of premier natural foods stores, offering organic and all natural products and vitamins from both top national brands as well as locally sourced specialty brand (www.greenacres.com).

• Through its wholly owned subsidiary, Healthy Choice Wellness, LLC, the Company operates a Healthy Choice Wellness Center in Kingston, NY and has a licensing agreement for a Healthy Choice Wellness Center located at the Casbah Spa and Salon in Fort Lauderdale, FL. The Company continues to seek out locations for new Healthy Choice Wellness Centers but there are not currently any agreements in place for the opening of any new locations.
  
  
• Through its wholly owned subsidiary, Healthy U Wholesale, the Company sells vitamins and supplements, as well as health, beauty and personal care products on its website www.TheVitaminStore.com.
  

Forward Looking Statements

This press release contains forward-looking statements within the meaning of that term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Additional written or oral forward-looking statements may be made by the Company from time to time in filings with the Securities and Exchange Commission (SEC) or otherwise. Statements contained in this press release that are not historical facts are forward looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are based on management’s estimates, assumptions and projections and are not guarantees of future performance. The Company assumes no obligation to update these statements. Forward looking statements may include, but are not limited to, projections or estimates of revenue, income, or loss, exit costs, cash flow needs and capital expenditures, statements regarding future operations, expansion or restructuring plans, including our recent exit from, and winding down of our wholesale distribution operations. In addition, when used in this release, the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” and “plans” and variations thereof and similar expressions are intended to identify forward looking statements.

Factors that may affect our future results of operations and financial condition include, but are not limited to, fluctuations in demand for our products, the introduction of new products, our ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of our liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in our filings with the SEC.

Contact Information

Healthy Choices Wellness Corp.
3800 North 28th Way, Hollywood, FL 33020
305-600-5004
Email: ir@hcwc1.com

FAQ

How much did Healthy Choice Wellness Corp (HCWC) raise in its IPO?

Healthy Choice Wellness Corp (HCWC) raised approximately $4.0 million in gross proceeds from its initial public offering.

What was the offering price for HCWC's IPO shares?

The offering price for HCWC's IPO shares was $10.00 per share.

When did HCWC's shares begin trading on the NYSEAM?

HCWC's shares began trading on the NYSEAM on September 16, 2024.

What is the ticker symbol for Healthy Choice Wellness Corp?

The ticker symbol for Healthy Choice Wellness Corp is HCWC.

How does HCWC plan to use the proceeds from its IPO?

HCWC plans to use the net proceeds for general corporate purposes, including funding for working capital needs and potential strategic acquisitions.