IMAC Holdings, Inc. (NASDAQ:BACK), a specialty outpatient facilities provider with a market capitalization of $2.03 million, has announced that it regained compliance with Nasdaq’s audit committee requirements.
On Monday, the company was notified by Nasdaq that it had successfully reconstituted its audit committee with the necessary number of members, following the appointment of Jeffrey Busch on December 11, 2024. According to InvestingPro data, the company’s stock has experienced significant volatility, declining over 55% in the past six months.
The company had previously fallen out of compliance with Nasdaq Listing Rule 5605, which mandates that companies listed on the Nasdaq Capital Market maintain an audit committee of at least three members.
The rule is designed to ensure that listed companies adhere to certain governance standards, including oversight of the company’s accounting and financial reporting processes. InvestingPro analysis reveals that IMAC Holdings faces financial challenges, with its current ratio of 0.27 indicating that short-term obligations exceed liquid assets.
In addition to resolving the audit committee issue, IMAC Holdings addressed another compliance matter with Nasdaq. The company had received a notice on August 21, 2024, for not meeting Nasdaq Listing Rule 5250(c)(1), which requires timely filing of periodic financial reports with the SEC. IMAC Holdings delayed filing its Form 10-Q for the quarter ended June 30, 2024, leading to noncompliance. However, the company filed the overdue Form 10-Q on December 18, 2024, and plans to file its next quarterly report for the quarter ended September 30, 2024, promptly. The company believes that once this filing is made, it will regain full compliance with the periodic reporting requirements.
This announcement is based on a press release statement and reflects the company’s efforts to meet the regulatory obligations of the Nasdaq Capital Market. The company, headquartered in Franklin, Tennessee, operates under the trading symbol NASDAQ:BACK and continues to focus on its specialty outpatient services, with its corporate governance now back in alignment with Nasdaq’s listing standards. InvestingPro subscribers can access additional insights, including 8 more key tips about IMAC Holdings’ financial health and market position. The platform’s analysis suggests the stock is currently trading slightly below its Fair Value.
In other recent news, IMAC Holdings secured a significant $3.74 million through a private investment in public equity (PIPE) financing.
The deal, which involved the sale of Series G convertible preferred stock and accompanying warrants, allowed the company to repay $2.24 million of its outstanding promissory notes.
Remaining funds are set aside for general corporate purposes. In a parallel development, IMAC Holdings 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.
On the governance front, IMAC Holdings has welcomed Jeffrey Busch, a seasoned professional in medical and pharmaceutical investments, to its Board of Directors. This followed the acquisition of certain assets from Theralink Technologies. The company has also expanded its board with the addition of Dr. Peter Beitsch and Dr. Matthew Schwartz, both experts in the oncology field.
In terms of compliance, IMAC Holdings regained its standing with Nasdaq’s minimum stockholders’ equity requirement, following strategic measures including the Theralink Technologies asset acquisition. However, the company will be under a one-year monitoring period by Nasdaq to ensure ongoing compliance.
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