With an assets/liabilities ratio below one and negative gross profit margin, IMAC Holdings (IMAC) should not be selling shares at 3.93x sales. Other companies operating in the same sector show positive gross profit margins and trade at 1.3x-3.7x sales. In addition, it is not ideal that IMAC will use some proceeds from the IPO to pay its debt. Furthermore, the company is selling warrants, which could lead to stock dilution risk in the future. Shareholders should be careful. With all this in mind, IMAC does not seem a clear buy.
Source: Prospectus
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