IMAC Holdings is returning to the capital markets for funding, this time filing papers that will let it raise up to $5 million through the sale of stock at market prices.
Brentwood-based IMAC, which runs orthopedic treatments clinics in five states, has contracted with California boutique investment bank Ascendiant Capital Markets to sell its shares. But the company can’t raise the full $5 million just yet: Its active shelf registration prohibits it from selling securities worth more than a third of its public float — currently nearly $13 million — over the course of a year.
And CEO Jeff Ervin and his team raised $2.6 million from a direct stock offering in June. That leaves a little more than $1.5 million available to them for now under the Ascendiant arrangement.
Proceeds from upcoming stock sales will go toward facility expansion, be that via development or acquisition. First though, IMAC will need to pay Ascendiant a 3 percent commission and direct $250,000 of every $1 million raised toward repaying a promissory note scheduled to mature next September.
IMAC posted a net loss of $4.1 million on revenues of $5.9 million in the first six months of this year. Ervin and his team have said they expect to continue to post losses as they look to scale the business.
Around noon Tuesday, shares of IMAC (Ticker: IMAC) were changing hands at 81 cents apiece, up 1.2 percent on the day. They began 2020 around $1.70 and fellow below 50 cents during March’s market bottom.