IMAC Holdings executives have secured some financing for their clinical trial of a proposed stem cell treatment for one of the main symptoms of Parkinson’s disease.
Brentwood-based IMAC last Thursday signed an agreement for a promissory note with Iliad Research & Trading, a Chicago-based investment firm that specializes in working with small publicly traded companies with which IMAC also struck a deal early this year. Per the new agreement, IMAC has received $2.5 million — the company is giving Iliad a $175,000 issue discount and paying about $15,000 in various costs — and will pay an annual interest rate of 7 percent. The note is scheduled to mature in April 2022.
The funding will go to various growth initiatives, with IMAC CEO Jeff Ervin and his team pointing specifically to their planned Phase I clinical trial of MSCTC-0010, a stem cell therapy for bradykinesia, a slowness of movement experienced by many Parkinson’s patients.
Word of the Iliad funding came shortly after Ervin announced he had recruited three new board members to replace those who last month submitted their resignations. Coming aboard are:
• Maurice “Mo” Evans, a former pro basketball player who was executive vice president of the National Basketball Players Association and founder of talent agency E.L.O.S. Sports Group
• Michael Pruitt, chairman and CEO of restaurant holding company Amergent Hospitality Group and a veteran investor and merchant banker
• Cary Sucoff, a former New York prosecutor and law school professor who has owned advisory and consulting firm Equity Source Partners since 2011 and has played a role in more than 100 public and private health care companies.
“The three new additions to the board will help bring additional guidance, direction, and leadership for IMAC during our continued growth phase,” Ervin said. “Maurice has successfully bridged his basketball career with outstanding business acumen and leadership, and we expect his unique perspective will be instrumental for our branding and brand ambassador program. Michael has been successful in both the finance and hospitality industries, so his experience in successfully growing a consumer-focused business will be beneficial to the company. Cary’s deep financial advisory experience and expertise in financing numerous health care and biotech companies will truly be valuable for IMAC.”
Shares of IMAC (Ticker: IMAC) on Wednesday morning were down about 1 percent to roughly 79 cents. They began the year around $1.70.