KindlyMD Announces Pricing of $6.8 Million Initial Public Offering

Rhea-AI Summary

KindlyMD has announced the pricing of its Initial Public Offering (IPO) at $5.50 per unit, totaling approximately $6.8 million in gross proceeds. Each unit contains one share of common stock, one tradeable warrant, and one non-tradeable warrant. The common stock and tradeable warrants will start trading on NASDAQ under the symbols 'KDLY' and 'KDLYW' on May 31, 2024. The offering is expected to close on June 3, 2024, subject to customary conditions. KindlyMD has also granted underwriters a 45-day option to purchase additional shares and warrants to cover over-allotments. WallachBeth Capital is the sole bookrunner for the offering.

Positive

• IPO priced at $5.50 per unit, raising $6.8 million.
• Common stock and tradeable warrants to start trading on NASDAQ on May 31, 2024.
• Offering includes a 45-day option for underwriters to cover over-allotments.

Negative

• The units have no stand-alone rights and will not be certificated as stand-alone securities.
• Each unit's components are immediately separable, potentially leading to shareholder dilution.
• Warrants expire five years from the date of issuance, introducing long-term exercise uncertainty.

Financial Analyst

KindlyMD's initial public offering (IPO) pricing at $5.50 per unit, totaling approximately $6.8 million, is a significant milestone for the company. The issuance of both tradeable and non-tradeable warrants signifies strategic financial planning. Each tradeable warrant allows the purchase of one share at an exercise price of $6.33, while each non-tradeable warrant covers half a share at the same exercise price. This creates an incentive for investors to engage, as it offers potential for future gains if the stock price appreciates.

However, potential investors should consider the relatively modest size of the offering. Compared to larger IPOs, this amount indicates a smaller scale operation, which might come with higher volatility in stock performance. The use of proceeds has not been detailed, which raises questions about the company's immediate financial strategies. Additionally, the over-allotment option provided to underwriters suggests confidence in the demand for these shares, which could be a positive signal.

In the short term, the IPO could generate liquidity and potentially boost share price if demand is strong. Long term, success will depend on how KindlyMD leverages the capital raised for growth and scaling operations.

Market Research Analyst

The healthcare sector, especially companies integrating traditional and alternative therapies like KindlyMD, offers a unique market opportunity. The inclusion of medical cannabis in treatment plans aligns with growing acceptance and legalization trends which could attract a specific investor demographic looking for exposure to this niche. Additionally, the combined focus on primary care, pain management and behavioral therapies positions KindlyMD in a competitive, yet expanding market segment.

Investors should also be aware of the regulatory landscape, as changes in state and federal laws regarding medical cannabis could significantly impact operations. Furthermore, the competitive nature of the healthcare market means KindlyMD must continue to innovate and prove its business model to sustain long-term growth.

Short-term, the IPO's pricing and structure could lead to initial volatility, but the company's unique positioning might offer substantial growth potential if they can effectively navigate regulatory hurdles and market demands.

SALT LAKE CITY, UT / ACCESSWIRE / May 31, 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 pricing of its 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. 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.

Once the securities comprising the units begin separate trading, the shares and Tradeable Warrants are expected to begin trading on the Nasdaq Capital Market on May 31, 2024, under the symbols "KDLY" and "KDLYW," respectively. The offering is expected to close on or about June 3, 2024, subject to customary closing conditions.

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 is the IPO price for KindlyMD (KDLY)?

The IPO price for KindlyMD is $5.50 per unit.

How much does KindlyMD aim to raise from the IPO?

KindlyMD aims to raise approximately $6.8 million from the IPO.

When will KindlyMD shares start trading on NASDAQ?

KindlyMD shares will start trading on NASDAQ on May 31, 2024.

What symbols will KindlyMD's common stock and tradeable warrants trade under?

KindlyMD's common stock will trade under the symbol 'KDLY', and its tradeable warrants under the symbol 'KDLYW'.

What options have been granted to underwriters in KindlyMD's IPO?

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

When is the offering expected to close?

The offering is expected to close on June 3, 2024, subject to customary conditions.