KindlyMD Announces Closing of $6.8 Million Initial Public Offering

Rhea-AI Summary

KindlyMD (NASDAQ:KDLY, KDLYW) has completed its initial public offering (IPO) of 1,240,910 units at $5.50 per unit, raising approximately $6.8 million in gross proceeds. Each unit includes one share of common stock, one tradeable warrant to purchase a share at $6.33, and one non-tradeable warrant to purchase half a share at $6.33. The shares and warrants began trading on Nasdaq on May 31, 2024. WallachBeth Capital is the sole bookrunner. KindlyMD has also granted underwriters a 45-day option to purchase additional shares and warrants to cover over-allotments.

Positive

• KindlyMD raised approximately $6.8 million in gross proceeds from its IPO.
• The shares and tradeable warrants started trading on Nasdaq on May 31, 2024.
• Units were sold at $5.50 each, indicating market interest and pricing success.
• WallachBeth Capital served as the sole bookrunner, adding credibility to the offering.

Negative

• Underwriting discounts and offering expenses will reduce the net proceeds from the $6.8 million gross raised.
• The IPO included non-tradeable warrants, which may be less attractive to some investors.
• There is an over-allotment option that could potentially dilute existing shareholders if exercised.

Insights

Financial Analyst

KindlyMD's IPO closure, raising approximately $6.8 million, is a significant milestone for the company, especially considering its innovative approach of integrating traditional primary care with alternative therapies. The immediate separability of the shares and warrants suggests a strategy to provide flexibility and liquidity to investors.

The use of warrants, with an exercise price of $6.33 per share, introduces an additional layer of potential revenue for the company. If the stock performs well, investors might exercise these warrants, providing KindlyMD with additional capital which can be important for a growing company in the healthcare sector.

However, it's essential to understand the underwriting discounts and offering expenses will reduce the net proceeds. The 45-day option granted to underwriters to purchase additional shares and warrants could also dilute existing shares if exercised. These factors create both opportunities and risks for investors.

Investors should monitor post-IPO trading performance closely and consider the impact of warrants on long-term share value.

Healthcare Market Analyst

KindlyMD's approach of combining traditional primary care with integrated behavioral and alternative therapies, including medical cannabis, places it in a unique position within the healthcare market. This strategy aligns with the growing demand for holistic and patient-centered care. The use of medical cannabis, while promising, comes with regulatory and societal challenges which can affect market acceptance and growth potential.

Investors should consider the regulatory environment, especially given the company's reliance on state-level legalization of medical cannabis. Any changes in legislation or public sentiment can significantly impact KindlyMD's business model and revenue streams.

Given the innovative nature of their services, KindlyMD could potentially capture a niche market, but market penetration and acceptance rates will be critical factors to watch.

SALT LAKE CITY, UT / ACCESSWIRE / June 3, 2024 / KindlyMD, Inc. (NASDAQ:KDLY)(NASDAQ:KDLYW) ("KindlyMD" or the "Company"), a patient-first healthcare and healthcare data company uniquely integrating traditional primary care and pain management strategies with integrated behavioral and alternative therapies, including the recommendation of medical cannabis in patient treatment plans in compliance with a legalized state medical cannabis regulatory scheme, today announced the closing of its previously announced initial public offering of 1,240,910 units (each, a "Unit," collectively, the "Units") at a price of $5.50 per Unit for a total of approximately $6.8 million of gross proceeds to the Company, prior to deducting underwriting discounts and offering expenses. Each Unit is comprised of one share of the Company's common stock with $0.001 par value per share ("Common Stock"), one tradeable warrant (each, a "Tradeable Warrant," collectively, the "Tradeable Warrants") to purchase one share of Common Stock at an exercise price of $6.33 per share, and one non-tradeable warrant (each, a "Non-tradeable Warrant," collectively, the "Non-tradeable Warrants") to purchase one-half of one share of Common Stock at an exercise price of $6.33 per share. The units have no stand-alone rights and will not be certificated or issued as stand-alone securities. The shares of Common Stock and the Warrants comprising the Units are immediately separable upon issuance and will be used separately in this offering. Each Warrant offered as a part of this offering is immediately exercisable upon issuance and will expire five years from the date of issuance.

The shares and Tradeable Warrants began trading on the Nasdaq Capital Market on May 31, 2024, under the symbols "KDLY" and "KDLYW," respectively.

In addition, KindlyMD has granted the underwriters a 45-day option to purchase, at the public offering price, up to an additional 186,136 shares of Common Stock and/or 186,136 Tradeable Warrants, and/or 186,136 Non-Tradeable Warrants, or any combination thereof, at the public offering price per share of Common Stock and per Warrant, respectively, less, in each case, underwriting discounts and commissions, on the same terms as set forth in this prospectus, solely to cover over-allotments, if any.

WallachBeth Capital LLC is the Sole Bookrunner for the offering.

The offering is being made only by means of a prospectus. A copy of the final prospectus related to the offering may be obtained, when available, from WallachBeth Capital, LLC, via email: cap-mkts@wallachbeth.com, or by calling +1 (646) 237-8585, or by standard mail at WallachBeth Capital LLC, Attn: Capital Markets, 185 Hudson St., Suite 1410, Jersey City, NJ 07311, USA. In addition, a copy of the final prospectus, when available, relating to the offering may be obtained via the Securities and Exchange Commission's ("SEC") website at www.sec.gov.

A registration statement on Form S-1, as amended (File No. 333-274606), relating to these securities was filed with the SEC and was declared effective on May 13, 2024. 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 KindlyMD

KindlyMD™️ is a patient-first healthcare and healthcare data company uniquely integrating traditional primary care and pain management strategies with integrated behavioral and alternative therapies to offer patients comprehensive care and reduce the addiction and dependency of opioid use in the U.S. KindlyMD currently operates four centers including the largest alternative pain treatment center in Utah. With a focus on holistic pain management through its specialty outpatient clinical services, including the recommendation of medical cannabis by KindlyMD healthcare providers, KindlyMD is providing better patient health outcomes.

For more information, please visit www.kindlymd.com.

Forward-Looking Statements

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as ‘'should,'' ‘'may,'' ‘'intends,'' ‘'anticipates,'' ‘'believes,'' ‘'estimates,'' ‘'projects,'' ‘'forecasts,'' ‘'expects,'' ‘'plans,'' and ‘'proposes.'' These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" in KindlyMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. KindlyMD, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. The information which appears on our websites and our social media platforms, including, but not limited to, Instagram and Facebook, is not part of this press release.

Investor Relations Contact:

Valter Pinto, Managing Director
KCSA Strategic Communications
(212) 896-1254
kindlymd@kcsa.com

SOURCE: KindlyMD, Inc

View the original press release on accesswire.com

FAQ

What did KindlyMD (KDLY) raise from its IPO?

KindlyMD raised approximately $6.8 million in gross proceeds from its IPO.

When did KindlyMD (KDLY) shares and warrants start trading on Nasdaq?

KindlyMD shares and tradeable warrants began trading on Nasdaq on May 31, 2024.

What is the exercise price for KindlyMD's warrants?

The exercise price for KindlyMD's tradeable and non-tradeable warrants is $6.33 per share.

Who managed KindlyMD's IPO?

WallachBeth Capital was the sole bookrunner for KindlyMD's IPO.

What options do underwriters have regarding additional shares and warrants for KindlyMD (KDLY)?

Underwriters have a 45-day option to purchase additional shares and warrants to cover over-allotments.