IMAC Holdings Announces Exploration Of Strategic Alternatives To Maximize Shareholder Value

Author: Benzinga Newsdesk | July 26, 2022 09:15am

IMAC Holdings, Inc. (Nasdaq: IMAC) (“IMAC” or the “Company”), a provider of innovative medical advancements and care specializing in regenerative rehabilitation orthopedic treatments without the use of surgery or opioids, today announced that its board of directors has initiated an exploration of strategic alternatives. As part of this process, the board will consider a wide range of options for the company including, among other things, a potential merger, spin-off, sale, or other strategic transaction for one or more of its key business units or assets.

“As our company continues to expand into complementary revenue streams, we believe the time is right to investigate a range of strategic alternatives with the intent to pursue profitable growth and maximize shareholder value,” said Jeffrey Ervin, IMAC’s Chief Executive Officer. “We have developed a range of regenerative and organic applications for spinal health and wellness and expect to publish record revenue in our 2nd quarter filing as evidence of this progress. We simply see a disconnect between asset values we have developed and the value our assets may have to partners.”

IMAC Holdings was originally formed in 2015 to expand on the footprint of the IMAC Regeneration Center, which first opened in Kentucky in 2000. The company has since added additional avenues of business and now has three areas of focus:

IMAC Regeneration Centers – These centers combine life science advancements with traditional medical care for movement restricting diseases and conditions. IMAC owns or manages more than 10 outpatient clinics that provide regenerative, orthopedic and minimally invasive procedures and therapies.
The Back Space – In 2021, IMAC launched a pilot program with the placement of The Back Space retail chiropractic clinics within select Walmart stores across the U.S. These centers specialize in chiropractic adjustments and percussion tool therapies for soft tissue recovery and spinal wellness. In April 2022, the company announced the successful completion of the pilot program within Walmart with plans to triple its store count with at least 20 additional locations over the next 12 months.
Phase 1 Clinical Trial – In 2020, IMAC initiated a Phase 1 clinical trial for an investigative compound utilizing umbilical cord-derived allogenic mesenchymal stem cells for the treatment of bradykinesia due to Parkinson’s disease. According to Zion Market Research, the global Parkinson’s disease therapeutics market was $2.61 billion in 2018 and is expected to grow to $5.28 billion by 2025.

There can be no assurance that this process will result in the company pursuing a particular transaction or other strategic outcome. IMAC has not set a timetable for completion of this process, and it does not intend to disclose further developments unless and until it determines that further disclosure is appropriate or necessary.

IMAC has retained Joseph Gunnar & Co. LLC as its exclusive financial advisor to assist in the review process.

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