Impact BioMedical Inc. Announces the Closing of its Initial Public Offering

Rhea-AI Summary

Impact BioMedical Inc. (NYSE American: IBO) has successfully closed its initial public offering of 1,500,000 common stock shares at $3.00 per share. Trading began on the NYSE American Market on September 16, 2024, under the ticker symbol 'IBO'. The company granted underwriters a 45-day option to purchase up to 225,000 additional shares. Revere Securities, served as the sole book-running manager and received warrants to purchase up to 75,000 shares (86,250 if over-allotment is fully exercised) at $3.75 per share. The warrants are exercisable from nine months after the offering's commencement until the third anniversary. The SEC declared the registration statement effective on September 13, 2024.

Positive

• Successful completion of initial public offering
• Raised $4.5 million through the sale of 1,500,000 shares
• Listing on NYSE American Market enhances visibility and liquidity
• 45-day option for underwriters to purchase additional 225,000 shares could raise extra capital

Negative

• Potential dilution of existing shareholders' value due to new share issuance
• Warrants issued to underwriters may lead to further dilution if exercised

Insights

Financial Analyst

Impact BioMedical's IPO marks a significant milestone, raising $4.5 million by offering 1.5 million shares at $3.00 each. This capital injection could fuel R&D and expansion efforts. However, the relatively small offering size suggests a cautious market approach. The $3.75 warrant price, 25% above the IPO price, indicates some optimism about future growth. Investors should note the dilutive effect of potential additional share issuances, both from the overallotment option and underwriter warrants. The NYSE American listing provides liquidity but also subjects the company to stricter regulatory scrutiny, potentially benefiting shareholders through increased transparency.

Market Research Analyst

The healthcare and wellness sector has been experiencing robust growth, making Impact BioMedical's IPO timely. However, the modest offering size may limit the company's ability to compete with larger, well-funded players. The $4.5 million raised could quickly be consumed in this capital-intensive industry. Investors should watch for:

• Post-IPO cash burn rate
• Pipeline progress
• Strategic partnerships

These factors will be important in determining the company's long-term viability. The IPO's success in the current market conditions could also signal investor appetite for biotech startups, potentially influencing future sector IPOs.

Legal Expert

The IPO's compliance with SEC regulations, including the effective Form S-1 registration, demonstrates proper due diligence. The 45-day overallotment option and underwriter warrants are standard practices, balancing risk for underwriters while potentially diluting existing shareholders. Investors should be aware that the 9-month lock-up period for underwriter warrants could create future selling pressure. The company's transition to public status brings increased reporting obligations and potential shareholder litigation risks. Management must now navigate the complex landscape of public company governance, including Sarbanes-Oxley compliance and regular SEC filings, which could strain resources but ultimately benefit shareholders through enhanced transparency.

NEW YORK, Sept. 17, 2024 (GLOBE NEWSWIRE) --  Impact BioMedical Inc. (NYSE American: IBO), a company discovering and developing new offerings in human healthcare and wellness, today announced the closing of its previously announced initial public offering of 1,500,000 shares of its common stock at a public offering price of $3.00 per share. The shares began trading on the NYSE American Market on September 16, 2024, under the ticker symbol “IBO”.

In addition, Impact has granted the underwriters a 45-day option to purchase up to 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 sole book-running manager for the offering.

We have issued to Revere Securities 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 are exercisable at $3.75 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, commencing nine months after the commencement of sales in the offering to the third anniversary thereof.

A registration statement on Form S-1 relating to the offering was filed with the Securities and Exchange Commission (the "SEC") (File Number: 333-275062) and was declared effective by the SEC on September 13, 2024. The offering was made only by means of a prospectus, forming a part of the registration statement. Copies of the final prospectus relating to the Offering may be obtained via the SEC's website at www.sec.gov. 

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

How much did Impact BioMedical Inc. (IBO) raise in its IPO?

Impact BioMedical Inc. (IBO) raised $4.5 million by selling 1,500,000 shares at $3.00 per share in its initial public offering.

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

Impact BioMedical Inc. (IBO) began trading on the NYSE American Market on September 16, 2024.

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

The ticker symbol for Impact BioMedical Inc. on the NYSE American Market is 'IBO'.

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

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