LifeMD™ Completes $15M Debt Financing

Rhea-AI Summary

LifeMD, Inc. (NASDAQ: LFMD) successfully closed a $15 million debt financing with B. Riley Principal Investments, enhancing liquidity and supporting growth in its telehealth business. This marks LifeMD’s first debt financing and strengthens its balance sheet, aligning with its aggressive growth strategy through 2022. CFO Marc Benathen emphasized that the transaction validates LifeMD’s telehealth platform and enables further investment towards profitability. B. Riley views LifeMD as a promising investment, committing to leverage their banking platform for the company’s growth.

Positive

• Successfully closed $15 million debt financing.
• Significantly strengthens balance sheet.
• Supports aggressive growth strategy through 2022.
• First debt financing enhances liquidity.

Negative

• None.

Financing significantly bolsters liquidity position to support continued investment in growth of telehealth business

NEW YORK, June 03, 2021 (GLOBE NEWSWIRE) -- LifeMD, Inc. (“the Company”) (NASDAQ: LFMD), a leading direct-to-patient telehealth company, announced today that it has successfully closed a $15 million debt financing with B. Riley Principal Investments.

• Additional liquidity significantly strengthens balance sheet and supports the company’s aggressive growth plan through 2022
• Transaction represents the completion of LifeMD’s first debt financing

“We are very pleased to have completed this debt transaction with B. Riley Principal Investments. We believe this transaction is a strong validation of LifeMD’s telehealth platform and our continued investment in growth,” noted Marc Benathen, CFO of LifeMD. “As we noted previously, our management team has remained very focused on bolstering our balance sheet to support our aggressive growth strategy and pathway to profitability while doing so with the best interests of our shareholders in mind. By completing this debt financing, LifeMD not only enhances the cash on the balance sheet but forms a key partnership with a tremendous institution with strong capital markets capabilities and deep relationships in the space.”

"B Riley’s Principal Investment team uses the firm’s proprietary capital to make direct investments in companies with proven platform technologies with significant near-term growth potential,” noted Bryant Riley, Chairman and CEO of B. Riley. “We believe that LifeMD fits this profile and we are committed to leveraging the full power of our banking platform and network to support the growth of LifeMD.”

For more detailed information related to the terms of the debt financing please see LifeMD’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 3, 2021.

About LifeMD
LifeMD, Inc. is a rapidly growing direct-to-patient, telehealth company, offering cash-pay virtual medical care across all 50 states. LifeMD’s telemedicine platform enables virtual access to affordable and convenient medical treatment from licensed providers and, when appropriate, prescription medications and over-the-counter products delivered directly to the patient’s home.  To learn more, visit www.LifeMD.com.

Cautionary Note Regarding Forward Looking Statements
This news release includes 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, as amended, regarding, among other things our plans, strategies and prospects—both business and financial. While we believe that our plans, intentions, and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions, or expectations. Forward-looking statements are inherently subject to risks, uncertainties, and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as “believe,” “expect,” “anticipate,” “should,” “planned,” “will,” “may,” “intend,” “estimated,” and “potential,” among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. All forward-looking statements attributable to LifeMD, Inc. or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.

Company Contact
LifeMD, Inc. 
Marc Benathen, CFO
Email Contact 

Investor Relations Contact
Ashley Robinson
LifeSci Advisors, LLC
arr@lifesciadvisors.com  

FAQ

What is the significance of LifeMD's $15 million debt financing?

The $15 million debt financing significantly boosts LifeMD's liquidity, allowing for continued investment in its telehealth business and supporting its aggressive growth strategy through 2022.

Who was involved in LifeMD's debt financing?

LifeMD's debt financing involved B. Riley Principal Investments, which provided the funds to enhance LifeMD's balance sheet and support its growth.

When was LifeMD's debt financing completed?

LifeMD completed its $15 million debt financing on June 3, 2021.

What are the expected outcomes of LifeMD's debt financing?

LifeMD's debt financing is expected to validate its telehealth platform and enable further investments towards achieving profitability.