WallachBeth Announces Closing of KindlyMD's $6.8m IPO

Rhea-AI Summary

WallachBeth Capital announced the successful completion of KindlyMD's IPO, raising $6.8 million in gross proceeds. The IPO involved the sale of 1,240,910 units at $5.50 each. Each unit includes one share of common stock, one tradeable warrant, and one non-tradeable warrant. The shares and tradeable warrants began trading on Nasdaq under the symbols 'KDLY' and 'KDLYW'. Additionally, KindlyMD has granted underwriters a 45-day option to purchase up to an additional 186,136 shares and warrants to cover over-allotments. WallachBeth Capital served as the Sole Bookrunner for the offering.

Positive

• Successful IPO raising $6.8 million in gross proceeds.
• Units priced at $5.50 each, involving 1,240,910 units.
• KindlyMD's shares and tradeable warrants began trading on Nasdaq.
• WallachBeth Capital served as Sole Bookrunner, indicating strong institutional support.

Negative

• Gross proceeds figure does not account for underwriting discounts and offering expenses.
• Potential shareholder dilution due to the issuance of additional shares and warrants.
• Over-allotment option of 186,136 shares and warrants could further dilute shares.

Insights

Financial Analyst

The recent IPO of KindlyMD, Inc. (NASDAQ: KDLY) represents a significant milestone for the company, raising $6.8 million through the issuance of 1,240,910 units. The structure of this IPO is notable, with each unit comprising one share of common stock, a tradeable warrant and a non-tradeable warrant. Such a structure often aims to attract a broader range of investors by offering immediate opportunities to trade part of their investment while holding onto potential future gains via warrants.

From a financial perspective, the pricing of the units at $5.50 each, with warrants exercisable at $6.33, suggests that the company anticipates a higher future valuation. The inclusion of both tradeable and non-tradeable warrants is a strategic move to provide liquidity while ensuring some level of long-term investment commitment. Investors should be aware of the potential dilution effect if all warrants are exercised, which could impact the stock price in the future.

The gross proceeds of $6.8 million, prior to underwriting discounts and offering expenses, provide KindlyMD with necessary capital to expand its operations, particularly its integrated behavioral and alternative therapies segment. This infusion of capital could enhance its market position, especially if used efficiently in high-growth areas of healthcare.

The rating score for this news is 1 due to the positive implications of successful capital raising for the company's growth and operational expansion.

Healthcare Market Analyst

KindlyMD's IPO comes at an opportune time when the healthcare sector is increasingly integrating traditional and alternative approaches to treatment. The company's focus on blending primary care and pain management with behavioral and alternative therapies positions it uniquely in a market that is growing in consumer interest and acceptance. This holistic approach can cater to a broad demographic, from chronic pain sufferers to those seeking alternative treatment options.

The proceeds from the IPO will likely be channeled into expanding these integrated services, which could set KindlyMD apart in a competitive healthcare landscape. The immediate trading of shares and warrants under symbols 'KDLY' and 'KDLYW' respectively, allows investors to quickly engage with the stock, potentially driving initial market momentum.

Investors should monitor how the company deploys the new capital into its service offerings and whether it can maintain its unique position in the market. The effectiveness of its integrated care model will be a critical factor in its long-term success.

The rating score is 1 due to the strong market potential for the company's integrated healthcare services.

JERSEY CITY, N.J., June 3, 2024 /PRNewswire/ -- WallachBeth Capital LLC, a leading provider of capital markets and institutional execution services, announced today that KindlyMD, Inc. (NASDAQ: KDLY; KDLYW) a patient-first healthcare and healthcare data company uniquely integrating traditional primary care and pain management strategies with integrated behavioral and alternative therapies has completed its previously announced IPO of 1,240,910 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 one tradeable warrant to purchase one share of Common Stock at an exercise price of $6.33 per share, and one non-tradeable warrant 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 acted as 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 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 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 WallachBeth Capital LLC.

WallachBeth Capital offers a robust range of capital markets and investment banking services to the healthcare community. The firm's experience includes initial public offerings, follow-on issues, PIPE offerings, and private transactions. The firm's website is located at www.wallachbeth.com.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, 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.

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.

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SOURCE WallachBeth Capital LLC

FAQ

What was the outcome of KindlyMD's IPO?

KindlyMD's IPO raised approximately $6.8 million in gross proceeds.

What is the price of each unit in KindlyMD's IPO?

Each unit in KindlyMD's IPO was priced at $5.50.

What does each unit of KindlyMD's IPO consist of?

Each unit consists of one share of common stock, one tradeable warrant, and one non-tradeable warrant.

When did KindlyMD's shares and warrants start trading on Nasdaq?

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

What are the symbols for KindlyMD's shares and tradeable warrants on Nasdaq?

The symbols are 'KDLY' for shares and 'KDLYW' for tradeable warrants.

What is the over-allotment option offered by KindlyMD?

KindlyMD has granted a 45-day option to purchase up to an additional 186,136 shares and warrants to cover over-allotments.

Who was the Sole Bookrunner for KindlyMD's IPO?

WallachBeth Capital acted as the Sole Bookrunner for the offering.