Synergy CHC Corp. Announces Closing of Initial Public Offering

Rhea-AI Summary

Synergy CHC Corp (NASDAQ: SNYR) has completed its initial public offering of 1,150,000 shares of common stock at $9.00 per share. Trading began on the Nasdaq Global Market on October 23, 2024, under ticker 'SNYR'. The company raised approximately $8.4 million in net proceeds after deducting underwriting costs. Underwriters have a 30-day option to purchase up to 172,500 additional shares. The funds will be used to repay related party promissory notes and for general corporate purposes. Roth Capital Partners served as the sole manager for the offering.

Positive

• Successfully completed IPO raising $8.4 million in net proceeds
• Achieved Nasdaq Global Market listing
• Secured underwriter option for additional 172,500 shares

Negative

• Significant portion of proceeds allocated to debt repayment rather than growth initiatives
• Small offering size may limit institutional investor interest
• Potential dilution from underwriter's option exercise

Insights

IPO Analyst

This IPO marks a significant milestone for Synergy CHC Corp, raising $8.4 million in net proceeds through the offering of 1,150,000 shares at $9.00 per share. The relatively modest size of the offering and immediate allocation of proceeds toward debt repayment suggests a strategic focus on strengthening the balance sheet rather than aggressive growth initiatives.

The company's decision to list on the Nasdaq Global Market provides enhanced visibility and access to capital markets, though the float size may initially result in higher volatility. The underwriter's option for additional shares could provide some price stability if exercised. The involvement of Roth Capital Partners as sole manager, while reputable, indicates a smaller-scale offering typical of emerging growth companies.

Financial Analyst

The immediate use of proceeds to repay related party promissory notes warrants attention, as it signals potential prior funding constraints and reliance on insider financing. While debt reduction improves the balance sheet, investors should note that only a portion of the outstanding debt will be addressed, leaving remaining obligations. The allocation of funds between debt repayment and working capital will be important for operational flexibility.

The pricing at $9.00 per share appears strategic, balancing accessibility for retail investors while maintaining institutional interest. However, the free float of just over 1 million shares could lead to significant price movements on relatively low trading volume.

WESTBROOK, Maine, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Synergy CHC Corp. (NASDAQ: SNYR) (“Synergy”), a provider of consumer health care, beauty, and lifestyle products, announced today the completion of its initial public offering of 1,150,000 shares of its common stock at $9.00 per share. The shares of common stock began trading on the Nasdaq Global Market on October 23, 2024 under the ticker symbol “SNYR.” In addition, Synergy granted the underwriters a 30-day option to purchase up to an additional 172,500 shares of common stock at the public offering price less underwriting discounts and commissions.

The net proceeds received by Synergy from the offering (after deducting underwriting discounts and commission and estimated offering expenses) were approximately $8.4 million. Synergy intends to use the net proceeds of this offering to repay a portion of outstanding amounts under certain related party promissory notes and for general corporate purposes, including working capital.

Roth Capital Partners acted as the sole manager for the offering.

The offering was made only by means of a prospectus contained in Synergy’s registration statement on Form S-1, as amended. Copies of the prospectus relating to the offering may be obtained from Roth Capital Partners, 888 San Clemente Drive, Newport Beach, CA 92660, Attn: Prospectus Department, telephone: 800-678-9147, or email at rothecm@roth.com.

A registration statement on Form S-1 relating to this offering was declared effective by the Securities and Exchange Commission (the “SEC”) on October 22, 2024 and an additional registration statement on Form S-1 relating to the offering was filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended, which became automatically effective upon filing. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any 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 Synergy CHC Corp.

Synergy CHC Corp. is a provider of consumer health care, beauty, and lifestyle products. Synergy’s current brand portfolio consists of two marquee brands, FOCUSfactor, a clinically-tested brain health supplement that has been shown to improve memory, concentration and focus, and Flat Tummy, a lifestyle and wellness brand that provides a suite of nutritional products to help women achieve their weight management goals.

Cautionary Statement Concerning Forward-Looking Statements

Certain statements contained in this press release constitute “forward-looking statements.” These forward-looking statements, including statements regarding Synergy’s use of proceeds from the offering, represent Synergy’s expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, which are set forth in Synergy’s registration statement on Form S-1, as amended, many of which are outside of Synergy’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.

Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Synergy does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Synergy to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the prospectus filed with the SEC in connection with Synergy’s public offering. The risk factors and other factors noted in Synergy’s prospectus could cause its actual results to differ materially from those contained in any forward-looking statement.

Investor Relations Contact:

Gateway Group
Cody Slach and Alex Thompson
949.574.3860
SNYR@gateway-grp.com

FAQ

How much did Synergy CHC Corp (SNYR) raise in its IPO?

Synergy CHC Corp raised approximately $8.4 million in net proceeds through its IPO after deducting underwriting discounts and commissions.

What was the IPO price for Synergy CHC Corp (SNYR) shares?

Synergy CHC Corp's IPO was priced at $9.00 per share.

When did Synergy CHC Corp (SNYR) begin trading on Nasdaq?

Synergy CHC Corp began trading on the Nasdaq Global Market on October 23, 2024.

How will Synergy CHC Corp (SNYR) use its IPO proceeds?

The company plans to use the proceeds to repay a portion of outstanding related party promissory notes and for general corporate purposes, including working capital.