IPO Outlook: BIAF, HPCO, WLDS

By Duncan Ferris

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The week ahead's IPOs previewed here are bioAffinity Technologies (NASDAQ: BIAF), Hempacco (NASDAQ: HPCO) and Wearable Devices (NASDAQ: WLDS).

bioAffinity Technologies (NASDAQ: BIAF)

This business is listing 1,285,325 units for an expected initial public offering (IPO) price of between $6.00 and $6.25.

Each unit consists of one share of common stock, one tradeable warrant to purchase common stock at an anticipated exercise price of $7.35 per share, and one non-tradeable warrant to purchase common stock at an anticipated exercise price of $7.656 per share.

What Does bioAffinity Do?

Founded in 2014, bioAffinity Technologies is a Delaware-incorporated company that seeks to address the need for non-invasive diagnosis of early-stage cancer and lung diseases and targeted cancer treatment. 

The business develops proprietary non-invasive diagnostic tests and cancer therapeutics. Identifying cancer at early stages can drastically improve survivability. According to bioAffinity, detecting cancer at stage 1 and then proceeding with treatment produces a ten-year survival rate of 92%, compared with a five-year survival rate of just 21% for stage 2 to stage 4 detection.

As well as its development of diagnostic testing kits, bioAffinity has a wholly owned subsidiary, OncoSelect Therapeutics. This business is focused on expanding its broad platform technologies to create targeted therapeutics to fight cancer, which the company says have wide appeal. 

Who is Leading the BIAF IPO?

The IPO's underwriters are WallachBeth Capital and Craft Capital Management.

Use of BIAF IPO Proceeds

The company says it intends to use the net proceeds for working capital and for general corporate purposes, which may include product and test development, general or administrative matters and capital expenditures.

Additionally, the business may also use a portion of the net proceeds for the acquisition of, or investment in, technologies, solutions or businesses that complement its business. 

BIAF expects the proceeds, together with anticipated sales of its diagnostic LDT test, should be sufficient for the company to complete the de novo pivotal clinical trial and, if results are positive, to submit and obtain FDA marketing authorization of CyPath Lung for sale and enter the EU market for the sale of CyPath Lung as a CE-marked IVD (In Vitro Diagnostic) test.

Wearable Devices (NASDAQ: WLDS)

Wearable Devices is offering 3,600,000 units comprised of one ordinary share and one warrant for the purchase of an ordinary share. The company anticipates that its share's initial public offering price will be between $5.20 and $7.20 per unit. As such, the business expects to receive approximately $18.7m from the IPO.

The exercise price of each warrant included in the unit will be 100% of the public offering price per unit.

What Does Wearable Devices Do?

This Israeli company is focused on developing a non-invasive neural input interface in the form of a wrist wearable band for controlling digital devices using subtle finger movements. 

Wearable Devices works with Business-to-Business, or B2B, and Business to Consumer, or B2C, customers as part of its push-pull strategy. The business is now in the transition phase from research and development to commercialization of its technology into B2B products.

At the same time, Wearable Devices is in the final stage of manufacturing its first B2C product, the "Mudra Band," an aftermarket accessory band for the Apple Watch, which allows touchless operation and control of the watch and iPhone.

Our company says its vision is to create a world in which the user's hand becomes a universal input device for touchlessly interacting with technology, while it also believes that its technology is setting the standard input interface for the Metaverse.

Who is Leading the WLDS IPO?

Aegis Capital Corp is set to act as the listing's sole book-running manager.

Use of WLDS IPO Proceeds

Approximately $1.95m of the proceeds of the IPO will go towards the manufacture of the Mudra Band for the Apple Watch product. A further $2.4m will go towards marketing for the Mudra Band product.

Around $3.3m is earmarked for the continued research and development of the company's Mudra technology, while approximately $2.1m is for sales and support of B2B customers and for the integration and licensing of Mudra technology into B2B customers' products.

Smaller amounts will be put towards a cash payment to Alpha as compensation for their consent to this offering, as well as working capital and general corporate purposes.

Hempacco (NASDAQ: HPCO)

This business is offering 1,000,000 shares of its common stock with an estimated initial public offering price of $6.00 per share.

After completion of the offering, public investors from the offering will own approximately 4.3% of the company's common stock, other investors will own approximately 15.7%, and approximately 79.9% will be owned by Green Globe International, Inc., a Delaware corporation.

What Does Hempacco Do?

Hempacco is focused on disrupting the tobacco industry by manufacturing and selling nicotine-free and tobacco-free alternatives to traditional cigarettes. The business utilizes a proprietary, patented spraying technology for terpene infusion and patent-pending flavored filter infusion technology to manufacture hemp and herb-based smokable alternatives.

The company's operating segments include private label manufacturing and sales, intellectual property licensing, and the development and sale of in-house brands using patented counter displays.

Its in-house brands are currently sold in over 200 retail locations located in the San Diego, California, area, and it currently owns approximately 600 kiosk vending machines.

The company's hemp cigarette production facility, located in San Diego, California, has the capacity to produce up to 30 million cigarettes monthly.

Who is Leading the HPCO IPO?

The IPO is being led by underwriter Boustead Securities.

Use of HPCO IPO Proceeds

Around a quarter of the listing's proceeds are projected to be used for sales, marketing and advertising initiatives, while another quarter is set to go towards acquisitions of companies and technologies aligned and synergistic with the business' manufacturing technologies and growth objectives.

The remainder will be used for upgrades to manufacturing, research and development, staffing, legal fees, general expenses and general working capital.

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In this article:

Topics:
IPO
Healthcare Supplies
Food, Beverage and Tobacco
Industries:
Information Technology

Author: Duncan Ferris

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Duncan Ferris does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Duncan Ferris has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.

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