IMAC Holdings, Inc. Takes Strategic Steps to Regain Compliance with Nasdaq's Equity Rule
IMAC Holdings, Inc. (NASDAQ:BACK) recently announced measures aimed at regaining compliance with Nasdaq's minimum stockholders’ equity requirement. The company, based in Franklin, Tennessee, had received a non-compliance notice from Nasdaq for falling below the $2.5 million equity threshold.
To address this issue, IMAC Holdings made strategic decisions, including abandoning a proposed merger with Theralink Technologies, Inc. due to Theralink's inability to meet its debt obligations. Instead, IMAC Holdings acquired certain Theralink assets through a settlement of defaulted indebtedness, strengthening its position in the market.
Furthermore, IMAC Holdings secured essential licenses from George Mason University and Vanderbilt University to support its acquired proteomics business. The company also expanded its business model by hiring key former Theralink employees and obtaining additional international licenses.
While Nasdaq will continue to monitor IMAC Holdings for compliance, the company's proactive measures have brought it back in line with Nasdaq's Equity Rule. Failure to demonstrate compliance in the next Quarterly Report could lead to delisting.
In addition to these strategic moves, IMAC Holdings made changes to its leadership team and accounting practices. The company expanded its Board of Directors and engaged a new independent registered public accounting firm, Marcum, LLP.
InvestingPro Insights:
- Market capitalization: $2.07 million
- Negative P/E ratio: -0.34
- Gross profit deficit: $0.86 million
- Negative earnings per share: -5.01 USD
- 30.5% drop in stock price total return over the last month
Analysts are not optimistic about the company's profitability in the near term, reflecting its challenges in generating sufficient margins. Investors looking for a detailed analysis can access InvestingPro Tips using the coupon code PRONEWS24 for up to 10% off a yearly subscription.
In conclusion, IMAC Holdings' strategic moves and financial data highlight the company's efforts to regain compliance and navigate a challenging financial landscape. Understanding these developments can help investors make informed decisions about their finances and investments.