Impact BioMedical Inc. Announces Pricing of Initial Public Offering

Rhea-AI Summary

Impact BioMedical Inc. (NYSE American: IBO), a company focused on human healthcare and wellness, has announced the pricing of its initial public offering. The company is offering 1,500,000 shares of common stock at $3.00 per share. Trading is expected to begin on the NYSE American Market on September 16, 2024, under the ticker symbol 'IBO'. The offering is set to close on September 17, 2024, subject to customary conditions. Impact has also granted underwriters a 45-day option to purchase an additional 225,000 shares. Revere Securities, is the book-running manager for the offering. The company has agreed to issue underwriter warrants to purchase up to 75,000 shares (86,250 if over-allotment is exercised), exercisable at 125% of the IPO price.

Positive

• Initial public offering provides capital infusion for the company
• Listing on NYSE American Market increases visibility and liquidity
• Underwriter option for additional shares could potentially increase capital raised

Negative

• Potential dilution of existing shareholders' equity
• Issuance of underwriter warrants may lead to further dilution in the future
• Market volatility could affect the stock price post-IPO

Insights

Financial Analyst

Impact BioMedical's IPO pricing at $3.00 per share for 1.5 million shares indicates a modest initial valuation, potentially reflecting cautious investor sentiment or the company's early-stage status. The $4.5 million raised (excluding over-allotment) provides a capital infusion, which may constrain near-term R&D and operational expansion. The 45-day over-allotment option for an additional 15% of shares could bring in up to $675,000 more if exercised. The underwriter warrants at 125% of the IPO price suggest confidence in potential share price appreciation. However, the relatively small offering size and the 5% warrant allocation to underwriters might indicate challenges in generating strong institutional interest.

Market Research Analyst

The biotech IPO market has been challenging recently, making Impact BioMedical's public debut noteworthy. The $3.00 share price sits at the lower end of typical biotech IPOs, possibly reflecting current market conditions or the company's early-stage pipeline. Investor appetite for speculative biotech stocks remains tepid, which could affect post-IPO performance. The NYSE American listing provides visibility but also subjects the company to stringent reporting requirements. The nine-month lock-up period for underwriter warrants may help stabilize the stock price initially. However, the relatively small float of 1.5 million shares could lead to higher volatility. Monitoring trading volume and price action in the first few months will be important to gauge market reception and long-term viability.

NEW YORK, Sept. 16, 2024 (GLOBE NEWSWIRE) -- Impact BioMedical Inc. (NYSE American: IBO), a company discovering and developing new offerings in human healthcare and wellness today announced the pricing of its initial public offering of 1,500,000 shares of its common stock at a public offering price of $3.00 per share. The shares are expected to begin trading on the NYSE American Market on September 16, 2024, under the ticker symbol “IBO.”

The offering is expected to close on September 17, 2024, subject to the satisfaction of customary closing conditions. In addition, Impact has granted the underwriters a 45-day option to purchase an additional 225,000 shares of its common stock at the public offering price, less underwriting discounts, and commissions. All of the shares of common stock are being offered by Impact Biomedical. Revere Securities, LLC is the book-running manager for the offering.

We have agreed to issue to the underwriter warrants to purchase up to 75,000 shares of our common stock (or 86,250 shares assuming the over-allotment option is exercised in full), representing five percent (5%) of the number of shares of our common stock sold in each offering. The warrants will be exercisable at a price per share equal to 125% of the initial public offering price per share at any time and from time to time, in whole or in part, from (9) months after the commencement of sales in this offering to the third anniversary thereof.

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.

About Impact BioMedical Inc.:
Impact BioMedical Inc. (“IBO”) discovers, confirms, and patents unique science and technologies resulting in new offerings in human healthcare and wellness. Once available, IBO works closely with licensing, co-development, joint ventures, and other relationships to bring these offerings to market. For more information, visit Impact Biomedical, Inc. | Reverse Engineering Nature (impactbiomedinc.com).

Safe Harbor Disclosure:
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that may cause actual results or events to differ materially from those projected. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date.

Media Contact:
Emily Martin
Email: emartin@impactbiomedinc.com

Investor Relations:
info@impactbiomedinc.com 

FAQ

What is the IPO price for Impact BioMedical Inc. (IBO) shares?

Impact BioMedical Inc. (IBO) has priced its initial public offering at $3.00 per share.

How many shares is Impact BioMedical Inc. (IBO) offering in its IPO?

Impact BioMedical Inc. (IBO) is offering 1,500,000 shares of its common stock in the initial public offering.

When will Impact BioMedical Inc. (IBO) start trading on the NYSE American Market?

Impact BioMedical Inc. (IBO) shares are expected to begin trading on the NYSE American Market on September 16, 2024.

What is the ticker symbol for Impact BioMedical Inc. on the NYSE American Market?

Impact BioMedical Inc. will trade under the ticker symbol 'IBO' on the NYSE American Market.

Who is the book-running manager for Impact BioMedical Inc.'s (IBO) IPO?

Revere Securities, is the book-running manager for Impact BioMedical Inc.'s (IBO) initial public offering.