By MATT BLOIS
A Brentwood health care company specializing in regenerative medicine has finalized a deal that would allow it to issue more shares in order to buy new clinics.
IMAC performs minimally invasive treatments and regenerative medicine for injuries or diseases that restrict movement at 14 clinics across the U.S.
The company raised about $4.4 million in an initial public offering earlier this year. Now, the company could issue even more shares.
Over the summer, IMAC signed a deal that would allow it to sell shares to Chicago-based Lincoln Park Capital Fund. The deal gives IMAC the ability to choose when to issue stock.
Lincoln Park will get the stock at a discount, and IMAC will have easy access to cash when needed. That should make it easier for IMAC to acquire new clinics.
CEO Jeff Ervin said this arrangement could be cheaper than buying clinics with stock, which is how it has acquired several clinics in the past.
“It gives the company full control on when to issue stock and the company’s policy internally is to use this financing vehicle for acquisitions when the economics are favorable,” he said.
Over the course of three years the company could raise $10 million through this deal, but hasn’t announced plans to raise any money this way yet.