The three independent board members of IMAC Holdings have told the Brentwood-based company they will resign by Nov. 30, citing disagreements with CEO (and fellow director) Jeff Ervin and his team.
Each of the three directors have held their seats on the board of the operator of orthopedic treatments clinics for less than two years. Two — veteran local health insurance exec Deke Ellwanger and Currax Pharmaceuticals CEO George Hampton — were elected in February of last year when IMAC completed its initial public offering while the third, former HealthStream CFO Gerry Hayden, came aboard this past February. In a regulatory filing, IMAC said the trio will make way before the end of November if Ervin can line up successors prior to then.
Ervin told the Post Monday he couldn’t get into the details of why the directors are stepping down — the five-week heads up suggests the split, while in no way a positive, has still been somewhat constructive — but expressed confidence he will be able to identify successors in the next five weeks.
Doing so will keep IMAC in decent regulatory standing with Nasdaq officials, who this month gave the company six months to get its stock price consistently above $1. As the only independent board representatives — along with the resigning trio and Ervin, the other member is company co-founder and COO Matt Wallis — the three resigning directors make up its key audit, compensation and governance committees.
Ervin and his team will report IMAC’s third-quarter earnings the week of Nov. 9. In the first six months of this year, the company lost $4.0 million on revenues of $5.9 million. The company has regularly raised fresh capital (or filed papers to do so) this year, including via the Paycheck Protection Program. Its shares (Ticker: IMAC) were down nearly 3 percent to about 82 cents Monday afternoon.