Synergy CHC Corp. Prices $10.35 Million Initial Public Offering

Rhea-AI Summary

Synergy CHC Corp, a provider of consumer health care, beauty, and lifestyle products, has announced the pricing of its initial public offering of 1,150,000 shares at $9.00 per share. Trading will commence on Nasdaq Global Market under symbol 'SNYR' on October 23, 2024. The company expects to receive $8.4 million in net proceeds, potentially reaching $9.9 million if underwriters exercise their option to purchase additional 172,500 shares. Proceeds will be used to repay related party promissory notes and for general corporate purposes. Roth Capital Partners is serving as the sole manager for the offering, which is expected to close on October 24, 2024.

Positive

• IPO provides immediate capital injection of $8.4 million
• Listing on Nasdaq Global Market increases visibility and trading access
• Additional $1.5 million possible from underwriter's option exercise

Negative

• Significant portion of proceeds allocated to debt repayment rather than growth
• Dilution of existing shareholders' equity
• Related party debt indicates previous internal financing needs

Insights

Financial Analyst

This IPO presents a modest-sized offering in the consumer health and beauty sector. The $10.35 million raise at $9.00 per share, resulting in $8.4 million in net proceeds, is relatively small for a Nasdaq listing. The immediate use of proceeds for debt repayment to related parties rather than growth initiatives raises some concerns about the company's financial position and future growth prospects.

The offering structure, including a 15% overallotment option and single underwriter setup, suggests institutional interest. The timing of the IPO during a challenging market environment for new listings indicates potential risks. Investors should carefully examine the company's financials and growth strategy, particularly given the competitive nature of the consumer health and beauty market.

Market Research Analyst

The consumer health and beauty sector has shown resilience but faces increasing competition from both established players and D2C brands. Synergy CHC's relatively small IPO suggests scale compared to industry leaders. The company's success will heavily depend on brand positioning, distribution channels and product differentiation in a crowded market.

The choice of Nasdaq listing provides visibility but comes with higher compliance costs and scrutiny. The modest size of the offering may impact trading liquidity and institutional coverage. Market participants should monitor post-IPO performance metrics including revenue growth, margins and market share gains to assess long-term viability.

WESTBROOK, Maine, Oct. 22, 2024 (GLOBE NEWSWIRE) -- Synergy CHC Corp. (“Synergy”), a provider of consumer health care, beauty, and lifestyle products, announced today the pricing of an initial public offering of 1,150,000 shares of its common stock at $9.00 per share. The shares are expected to begin 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 initial public offering price less underwriting discounts and commissions. The offering is expected to close on October 24, 2024, subject to customary closing conditions.

Synergy expects to receive approximately $8.4 million of net proceeds from the offering, or $9.9 million if the underwriters exercise their option to purchase additional shares in full. 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 is acting as the sole manager for the proposed offering.

The offering will be 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, when available, 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 will be filed pursuant to Rule 462(b) under the Securities Act of 1933, as amended, which will become 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 the closing of the public offering and 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

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

Synergy CHC Corp (SNYR) has priced its IPO at $9.00 per share.

When will Synergy CHC Corp (SNYR) start trading on Nasdaq?

Synergy CHC Corp (SNYR) shares are expected to begin trading on the Nasdaq Global Market on October 23, 2024.

How many shares is Synergy CHC Corp (SNYR) offering in its IPO?

Synergy CHC Corp is offering 1,150,000 shares, with an option for underwriters to purchase an additional 172,500 shares.

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

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