WallachBeth Capital Announces Pricing of KindlyMD's $6.8 Million IPO

Rhea-AI Summary

KindlyMD (NASDAQ: KDLY; KDLYW) announced the pricing of its $6.8 million IPO on May 31, 2024. The IPO consists of 1,240,910 units priced at $5.50 per unit, each unit comprising one share of common stock, one tradeable warrant, and one non-tradeable warrant. The tradeable warrants and non-tradeable warrants both have an exercise price of $6.33 per share. The shares and tradeable warrants will trade on Nasdaq under the symbols 'KDLY' and 'KDLYW,' respectively. The offering is expected to close around June 3, 2024, subject to customary conditions. WallachBeth Capital is the sole bookrunner for this offering, and the underwriters have a 45-day option to purchase additional securities to cover over-allotments.

Positive

• KindlyMD raised $6.8 million through its IPO.
• Each unit priced at $5.50, showing strong market confidence.
• Shares and tradeable warrants will list on Nasdaq, enhancing liquidity.
• Offering is expected to close promptly by June 3, 2024, demonstrating a well-organized process.
• WallachBeth Capital , a reputable firm, is the sole bookrunner.

Negative

• Dilution risk due to the addition of 1,240,910 units to the market.
• Warrants might create future selling pressure with an exercise price of $6.33.
• High underwriting discounts and commissions could impact net proceeds.
• Dependency on a 45-day option for additional securities may indicate potential under-subscription.

Insights

Financial Analyst

The announcement of KindlyMD's $6.8 million IPO is a significant milestone for the company, particularly as it attempts to carve out a niche in the healthcare industry by integrating traditional primary care with innovative pain management and behavioral therapies. Raising $6.8 million through the initial public offering provides the company with important capital to potentially expand its operations and further develop its unique healthcare model.

However, a couple of points warrant attention. Firstly, the per-unit price of $5.50 reflects the market's initial valuation of KindlyMD. This figure will serve as a benchmark for future market performance. Each unit comprises one share and warrants, which can be seen as a strategic move to attract various types of investors.

In the short term, KindlyMD's stock and warrants might experience volatility. Investors should be aware that IPOs generally come with a degree of uncertainty as the market adjusts to the new entrant. In the long term, the success of KindlyMD will heavily depend on its ability to scale its business model effectively, navigate regulatory landscapes, particularly in the realm of medical cannabis and demonstrate significant growth metrics.

Moreover, the fact that WallachBeth Capital LLC is the sole bookrunner signifies the level of confidence the underwriter has in KindlyMD's business strategy and market potential. This partnership may also provide market stability during the initial trading days.

In summary, while the IPO offers promising potential, investors must cautiously monitor how KindlyMD utilizes the IPO proceeds and manages market expectations. The company's ability to meet its strategic goals will be a key factor in its stock performance.

Market Research Analyst

KindlyMD's approach to combining primary care with novel pain management strategies, including the use of medical cannabis, positions it in a growing market with substantial opportunities. The integration of behavioral and alternative therapies aligns with current healthcare trends focusing on holistic and patient-centered care.

From a market perspective, KindlyMD's success will depend on its ability to differentiate itself within a competitive landscape. The healthcare sector is highly regulated and the inclusion of medical cannabis in treatment plans adds another layer of complexity. Investors should consider the company's regulatory compliance history and its ability to navigate future legislative changes.

The healthcare market is increasingly leaning towards integrated and comprehensive care solutions. KindlyMD's model could attract a specific segment of patients looking for alternative treatments, potentially driving market share growth. However, the company's ability to scale while maintaining quality care will be scrutinized. The $6.8 million raised through the IPO will be instrumental in this scaling process, particularly in enhancing technological capabilities and expanding service offerings.

Given the rising interest in alternative therapies and the growing acceptance of medical cannabis, KindlyMD could be well-positioned for growth. However, market acceptance and patient adoption rates will be critical factors to watch.

JERSEY CITY, N.J., May 31, 2024 /PRNewswire/ -- KindlyMD, Inc. (NASDAQ: KDLY; 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 WallachBeth Capital LLC

WallachBeth Capital offers a robust range of capital markets and investment banking services to the healthcare community, connecting corporate clients with leading institutions. The firm's experience includes initial public offerings, follow-on issues, PIPE offerings, and private transactions

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 is the date for KindlyMD's $6.8 million IPO?

KindlyMD's IPO pricing was announced on May 31, 2024.

What is included in each unit of KindlyMD's IPO?

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

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

KindlyMD's shares will trade under 'KDLY' and tradeable warrants under 'KDLYW'.

What is the exercise price for the warrants in KindlyMD's IPO?

The exercise price for the warrants is $6.33 per share.

When is the expected closing date for KindlyMD's IPO?

The offering is expected to close on or around June 3, 2024.

Who is the sole bookrunner for KindlyMD's IPO?

WallachBeth Capital is the sole bookrunner for the offering.