Murray, Utah-based KindlyMD Raises $6.8 Million in Gross Proceeds Through a "Nano Cap" Initial Public Offering

Self-described as a "pain management clinic and healthcare data company," KindlyMD "... is also one of the largest providers of medical evaluation and management services related to treatment recommendations within (Utah's) medical cannabis program ..."

Five-year-old KindlyMD "... offers direct health care to patients integrating prescription medicine and behavioral health services to reduce opioid use in the chronic pain patient population."

And, as of 10 June 2024, KindlyMD has entered into a collaboration agreement with market leader, Curaleaf, to expand patient education on "medical cannabis care" in Utah.

Surprise, surprise — Utah now has a publicly traded company in the "medical marijuana" space. Kind of.

On 3 June 2024, Murray, Utah-based KindlyMD (NASDAQ:KDLY) (NASDAQ:KDLYW) announced that it had raised $6.8 million in gross proceeds through an initial public offering by selling ~1.24 million units at $5.50 per unit.

According to KindlyMD's news release, each unit sold (in what I consider to be a "nano-capitalization" IPO) was comprised of

• One share of KindlyMD's common stock,
• One tradeable warrant to purchase one share of KindlyMD common stock at an exercise price of $6.33 per share, and
• One non-tradeable warrant to purchase one-half of one share of KindlyMD common stock at an exercise price of $6.33 per share. 

Additionally, the shares and tradeable warrants began trading on the Nasdaq Capital Market on 31 May 2024, under the symbols KDLY and KDLYW, respectively.

KindlyMD also offered its underwriter, WallachBeth Capital, a 45-day option "... to purchase, at the public offering price, up to an additional 186,136 shares of common stock and/or 186,136 tradeable warrants, and/or 186,136 non-tradeable warrants, or any combination thereof, at the public offering price per share of common stock and per warrant, respectively, less, in each case, underwriting discounts and commissions. ..."

A Brief Re-Introduction to KindlyMD

As noted in our 2023 writeup about the company, KindlyMD filed its initial paperwork with the U.S. Securities and Exchange Commission for an initial public offering last September.

As described in its final prospectus, KindlyMD defines itself as a "... pain management clinic and healthcare data company."

The company also writes that it is

"... one of the largest providers of medical evaluation and management services related to treatment recommendations within (Utah's) medical cannabis program ..."

According to its website, KindlyMD addresses patient care in such areas as

• Mental health,
• Pain management,
• Sleep support,
• Weight loss,
• Medication management, as well as
• Medical card issuance and renewal.

Regarding the last bullet point, patients interested in addressing their health conditions via so-called "medical marijuana" must be issued a "Medical Card" by a licensed Qualified Medical Provider.

According to the Utah Department of Health and Human Services website, QMPs are 

"Utah-licensed physicians (MDs and DOs), advanced practice registered nurses (APRNs), physician assistants (PAs), and podiatrists (DPMs) who are licensed to prescribe a controlled substance may receive approval from DHHS to recommend medical cannabis treatment for their patients."

As a Utah-licensed QMP, KindlyMD does NOT have on hand, or disperse, medical marijuana / cannabis products of any kind at any of its facilities.

In fact, as noted on its website, KindlyMD's professional providers also issue prescriptions for

• Pain medications, such as Percocet, OxyContin, etc.,
• Depression and anxiety medication, such as Prozac, Xanax, Ativan, Lexapro, etc.,
• ADHD medication and stimulants, such as Adderall, Vyvanse, etc.,
• Sleep medications, such as Lunesta, Ambien, etc.,
• Weight loss injections, such as Ozempic, Mounjaro, Semaglutide, etc., and yes, even
• Erectile dysfunction medications, such as Viagra, Cialis, etc.

Today, KindlyMD "... currently operates four centers including the largest alternative pain treatment center in Utah ..." and post-IPO, it plans to open between two to four new centers with monies raised via its offering.

The Curaleaf Collab

Two Mondays ago (10 June 2024), KindlyMD announced a strategic collaboration with one of the world's largest providers of consumer cannabis products, Curaleaf Holdings (TSX: CURA) (OTCQX: CURLF).

Under terms of the agreement,

"... KindlyMD and Curaleaf will work together to provide educational resources and information with a community perspective on holistic pain management and treatment ... (known as) ... the KindlyMD Complete Care program."

Specifically, the two firms will "co-host three charitable, community care events this summer," each at Curaleaf pharmacies in Utah County:

• June 25 at the Curaleaf pharmacy in Lehi, Utah;
• July 16 at the Curaleaf pharmacy in Provo, Utah; and
• August 6 at the Curaleaf pharmacy in Payson.

According to Tim Pickett, PA-C, Founder and CEO at KindlyMD:

"Our innovative collaboration with Curaleaf will provide more patients with access to pain management treatment options and alternative therapies, including, where appropriate, medical cannabis care in the state of Utah."

Hmmmm, so now to see how KindlyMD does with this modest injection of capital via its IPO.

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