IMAC Holdings, Inc., a specialty outpatient facilities provider with a market capitalization of just $2.73 million, is confronting the potential delisting of its securities from the Nasdaq Capital Market. According to InvestingPro data, the company's overall Financial Health Score stands at a concerning 1.71 out of 10, rated as WEAK.
On Monday, the company received a notice from Nasdaq's Listing Qualifications Department stating it failed to meet the minimum stockholders' equity requirement of $2.5 million. This development follows a prior compliance issue in May 2023, which had been resolved by July 2024, subjecting the company to a one-year Panel Monitor period.
The current equity shortfall means IMAC Holdings is ineligible to propose a plan for an extension to regain compliance, leading Nasdaq to plan for the suspension of the company's securities at the beginning of business on January 30, 2025.
InvestingPro analysis reveals concerning liquidity metrics, with a current ratio of just 0.08, indicating short-term obligations significantly exceed liquid assets. IMAC Holdings has until January 28, 2025, to appeal this decision to a Hearings Panel. If an appeal is filed, trading of the company's common stock on Nasdaq will continue during the appeal process.
The company also addressed a separate compliance issue regarding periodic reporting. They had previously delayed filing their Quarterly Report for the quarter ended September 30, 2024, which resulted in non-compliance with Nasdaq's Periodic Reporting Listing Rule. However, this matter was rectified with the filing of the report on January 17, 2025, and Nasdaq confirmed on January 21, 2025, that IMAC Holdings had regained compliance in this area.
These statements, which include plans to appeal the delisting determination, are considered forward-looking and are based on current expectations. The outcome of such plans and the company's ability to meet Nasdaq's continued listing requirements are subject to change. This information is based on the latest 8-K filing with the U.S. Securities and Exchange Commission. Track IMAC's financial health metrics and get access to 7 additional key insights with InvestingPro, your essential tool for comprehensive company analysis.
In other recent news, IMAC Holdings has regained compliance with Nasdaq's audit committee requirements, following the appointment of Jeffrey Busch to its audit committee. The company also resolved another compliance matter with Nasdaq related to the timely filing of periodic financial reports with the SEC. IMAC Holdings has secured $3.74 million through a private investment in public equity (PIPE) financing, which has been partly used to repay $2.24 million of its outstanding promissory notes.
In addition, the company has entered into a Common Stock Purchase Agreement with an equity line investor, potentially selling up to $60 million in common stock shares, contingent upon SEC approval and other conditions. IMAC Holdings has also welcomed Jeffrey Busch, a seasoned professional in medical and pharmaceutical investments, to its Board of Directors.
This follows the acquisition of certain assets from Theralink Technologies and the expansion of its board with the addition of Dr. Peter Beitsch and Dr. Matthew Schwartz, both experts in the oncology field. These developments are part of IMAC Holdings' ongoing efforts to meet regulatory obligations and strengthen its governance and financial oversight.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.