IMAC Holdings, Inc. Enters into PIPE Financing Agreement for Series G Convertible Preferred Stock and Warrants

IMAC Holdings, Inc., a Delaware-based company operating in the healthcare industry, filed a Form 8-K with the U.S. Securities and Exchange Commission on November 12, 2024. The filing disclosed that the company had entered into a Securities Purchase Agreement for a Private Investment in Public Equity (PIPE) financing arrangement. The agreement, set forth between IMAC Holdings and accredited investors, involved the issuance and sale of 4,675 shares of Series G convertible preferred stock along with warrants, leading to total proceeds of $3,740,000.

This PIPE Financing is part of a strategic move by IMAC Holdings to strengthen its financial position. A portion of the proceeds, amounting to $2,240,000, has been utilized to retire outstanding promissory notes. The remainder of the funds will be allocated towards general corporate purposes, aiding in operational enhancements and potential growth initiatives.

The Series G Preferred Stock, as outlined in the filing, includes key features such as a stated value of $1,000 per share, ranking senior to other capital stocks within the company, and entitlement to dividends at a rate of 10% per annum. Holders of the Series G Preferred Stock are also granted conversion rights into common stock at a fixed Conversion Price of $1.57 per share, subject to adjustments based on specific events.

Moreover, IMAC Holdings detailed the terms of the warrants issued alongside the Series G Preferred Stock. The warrants have an exercise price of $1.44 per share, becoming exercisable after a specific period and expiring five years from the Initial Exercisability Date. Similar to the Series G Preferred Stock, the warrants are subject to adjustments based on certain triggering events.

Additionally, the filing highlighted that IMAC Holdings has agreed to secure Stockholder Approval before finalizing the issuance of securities related to the Series G Preferred Stock and warrants. This approval is essential for compliance with the regulatory framework of the Nasdaq Capital Market.

Alongside the PIPE Financing, IMAC Holdings also engaged in a Common Stock Purchase Agreement with an equity line investor. This agreement grants the company the option to sell up-to $60 million worth of Common Stock over a 36-month period under specified conditions.

The comprehensive disclosure in the Form 8-K sheds light on IMAC Holdings’ strategic financial decisions, emphasizing efforts to optimize its capital structure and fund corporate initiatives aimed at sustained growth and operational efficiencies. The company’s prudent approach to financing reflects its commitment to enhancing shareholder value and driving long-term success in the dynamic healthcare sector.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read IMAC’s 8K filing here.

About IMAC

IMAC Holdings, Inc owns, manages, and subleases a chain of innovative medical advancements and care regeneration centers in the United States. The company's outpatient medical clinics provide regenerative, orthopedic, and minimally invasive procedures and therapies to patients with sports injuries, ligament and tendon damage, and other related soft tissue conditions, as well as back, knee, and joint pains.