The slight breeze in the August heat is coming from just a handful of deals on the IPO Calendar for the week of Aug. 8, 2022. Of seven deals on tap as of Monday afternoon, only three IPOs are in the mix – bioAffinity Technologies, Inc. (BIAF proposed), a biotech’s tiny unit IPO; Forza X1, Inc. (FRZA proposed), an electric boat start-up’s small-cap IPO, and CorpHousing Group, Inc. (CHG proposed), a short-term housing rental company’s small-cap IPO. A small SPAC IPO and three micro-cap uplisting/public offerings are also on the pricing roster. Bankers expect to raise about $130.7 million, if all seven deals get done. (Editor’s Note: This column, published Monday afternoon, Aug. 8, 2022, was updated Monday and Tuesday nights with pricing news.)
This week’s light IPO Calendar follows the trend for August. Only five deals were priced in the first week of August: Two IPOs, two SPAC IPOs and one tiny uplisting/public offering. Bankers raised $213 million.
The IPO market traditionally takes a break in August, especially during the last half of the month. This year – the slowest for IPO traffic since 2009 – that pattern has been varied slightly by the light and steady flow of small-cap deals from small to mid-sized investment banks.
Uplistings: Non-Bank Loans, COVID-19 Testing & Graphene
This week’s three uplisting/public offering deals represent a variety of industries, ranging from non-bank specialty lending to COVID-19 test kits and graphene products for lithium-ion batteries. Let’s take a look.
Mill City Ventures III, Ltd. (MCVT proposed) kicks off this sleepy week with its NASDAQ uplisting/public offering of just 1.25 million shares at $4.00 each to raise $5.0 million.
**Worth noting: After the market’s close on Monday, Mill City Ventures III, Ltd. priced its NASDAQ uplisting/public offering in sync with the terms in its recently revised prospectus: 1.25 million shares at $4.00 each. The offering raised $5.0 million, as expected.
The deal was a carry-over from last week.
Alexander Capital, L.P. is the sole book-runner of the Mill City Ventures III, Ltd. deal.
Mill City Ventures III, Ltd., based in Wayzata, Minnesota, has been involved since 2019 as a non-bank lender to businesses, associations and high net worth individuals. Its loans have an average interest rate of 22.4 percent and typically come due in nine months. Collateral is typically required for these loans. This type of lending is sometimes referred to as “hard money lending,” the prospectus says. The company was founded in 2006.
Ainos, Inc. (AIMD/AIMDW) priced its NASDAQ uplisting/public offering of units (stock and warrants) on Monday night (Aug. 8, 2022): 780,000 units at $4.25 per unit to raise $3.32 million. A 1-for-15 reverse stock split was declared effective at 8 p.m. on Aug. 8, 2022.
Maxim Group was the sole book-runner for the Ainos offering; Brookline Capital Markets was the co-manager.
Based in San Diego, Ainos, Inc. is a diversified medical technology (med tech) company. Ainos is focused on the development of novel point-of-care testing (POCT) products, including COVID-19 POCT products, as well as on low-dose non-injectable interferon therapeutics and synthetic RNA (SRNA)-driven preventive medicine.
Graphex Group Limited (GRFX proposed), a Hong Kong-based holding company for the Chinese manufacturer of graphene products for lithium-ion batteries, expects to price its NYSE American uplisting/public offering of 3.2 million American Depositary Shares (ADS) at $2.00 to $3.00 on Thursday night, Aug. 11, 2022, to trade Friday, Aug. 12. Estimated IPO proceeds are $8.0 million.
EF Hutton is the sole book-runner of the Graphex Group Limited deal.
Graphex Group’s customers include the makers of electric vehicle (EV) batteries and clean storage system batteries.
A fourth small-cap NASDAQ uplisting/public offering – for cannabinoid health and wellness products company Can B Corp. (CANB proposed and CANBW proposed) – may get priced sometime this week. The deal’s size: 2.03 million units at an assumed offering price of $5.05 each to raise $10.3 million. The company is based in Hicksville, N.Y.
H.C. Wainwright & Co. is the sole book-runner of the Can B Corp. deal.
IPOs: Biotech, Boats & Housing Rentals
A trio of small-cap IPOs this week offers a play on three different industries – biotech, electric sport boats and short-term housing rentals for individuals on business and leisure travel. Let’s take a look.
bioAffinity Technologies, Inc. (BIAF proposed), a biotech developing a noninvasive test to diagnose early stage lung cancer, expects to price its IPO of 1.2 million units at $6.00 on Tuesday night, Aug. 9th, to trade Wednesday, Aug. 10th. Estimated IPO proceeds are $7.1 million.
WallachBeth Capital is the sole book-runner of bioAffinity Technologies’ unit IPO.
Forza X1, Inc. (FRZA proposed), an electric sports boat start-up and subsidiary of Twin Vee Powercats Co. (VEEE), plans to price its IPO of 3.0 millon shares at $5.00 each on Wednesday night, Aug. 10th, to trade Thursday, Aug. 11. Estimated IPO proceeds are $15.0 million.
ThinkEquity is the only book-runner of Forza X1, Inc.’s IPO.
CorpHousing Group, Inc. (CHG proposed), a Miami-based company that offers short-term rental housing in major cities to business and leisure travelers, expects to price its IPO of 4.5 million shares at $4.00 to $5.00 on Thursday night, Aug. 11, to trade Friday, Aug. 12. CorpHousing’s rental property portfolio includes three- and four-star hotels and residential apartment buildings. Estimated IPO proceeds: $20.25 million.
Maxim Group is the book-runner, while Joseph Gunnar is the co-manager of CorpHousing’s deal.
Two SPAC IPOs in the Wings
As of Monday afternoon, just one SPAC IPO was scheduled for pricing this week. By Tuesday morning, another SPAC IPO was on the pricing roster.
Embrace Change Acquisition Corp. (EMCGU proposed), a San Diego-based SPAC that intends to pursue prospective targets in the technology, Internet and consumer sectors, plans to price its SPAC IPO of 6.5 million units at $10 each on Tuesday night, Aug. 9, to trade Wednesday, Aug. 10th. Note: This SPAC is incorporated in the Cayman Islands. Estimated proceeds: $65 million.
EF Hutton is the sole book-runner of Embrace Change Acquisition Corp.’s SPAC IPO.
After the market’s close on Tuesday, Embrace Change Acquisition Corp. priced its SPAC IPO on Tuesday night in line with the terms in its prospectus: 6.5 million units at $10 each to raise $65 million.
Aquaron Acquisition Corp. (AQUNU proposed), a New York-based SPAC focused on the new energy sector, joined the pricing line-up on Tuesday morning: 5 million units at $10 each. Pricing is expected Tuesday night, Aug. 9, to trade Wednesday, Aug. 10th. Estimated IPO proceeds: $50 million.
Chardan Capital Markets is the sole book-runner of Aquaron Acquisition’s SPAC IPO.
Stay tuned.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on IPOScoop.com’s website.)
Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board.
To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message.
Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.
Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums), is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.