Here are this week's key IPOs:
Erayak Power Solution Group Inc.
This business is expected to go public on 1 December 2022 through an offering of 3 million shares of its common stock at an expected price of $4 each. This would raise $12m for the company.
The business is joining the NASDAQ index under the ticker 'RAYA.'
What Does Erayak Power Solution Group Do?
Erayak specializes in the manufacturing, research and development, and wholesale and retail of power solution products.
Having been founded in 2019, the business operates through its wholly owned subsidiaries, Zhejiang Leiya and Wenzhou New Focus, primarily in China.
The business says its product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery and smart chargers, and custom-designed products. It says these products are used principally in agricultural and industrial vehicles, recreational vehicles, electrical appliances and outdoor living products.
The business says it already serves a large customer base in China and wishes to expand its reach to international clients. To this end, the business' products are already sold in Japan, England, Germany, France, Spain, Switzerland, Sweden, the Netherlands, the US, Canada, Mexico, Australia, Dubai, and nine other countries.
Erayak's goal is to be the premier power solutions brand and a solution for mobile life and outdoor living.
Who is Leading the RAYA IPO?
The listing is being headed by Craft Capital Management and RF Lafferty & Co, Inc.
Use of RAYA IPO Proceeds
The company has signaled that it expects to use the net proceeds as follows:
Approximately 40% for product research and development.
Around 20% for marketing and business development objectives.
13.3% for international management and operations.
26.7% for automation and the construction of a production workshop, with a goal of reducing man-powered workload and improving production efficiency.
BullFrog AI Holdings
This business is listing 1,317,647 units, with each of these consisting of one common stock and one warrant to purchase a share of common stock at an as-yet-unknown exercise price before expiry five years from issuance.
The company anticipates that its IPO price will be $6.375 per unit. Its stock will be listed on the NASDAQ under the BFAI ticker.
What Does BullFrog AI Do?
BullFrog AI uses artificial intelligence and machine learning to advance medicines for both internal and external projects. The company says one of the key drivers behind its approach is the fact that most new therapeutics fail at some point in their development, with high costs being a primary reason for this.
As such, the company's mission is to increase the probability of success and decrease the time and cost involved in developing therapeutics.
BullFrog says its platform technology, named bfLEAP, is an analytical Ai and machine learning platform which is able to surmount the challenges of scalability and flexibility currently hindering researchers and clinicians by providing a more precise, multi-dimensional understanding of their data.
The business says it is deploying bfLEAP for use at several critical stages of development for internal programs and through strategic partnerships and collaborations with the intention of streamlining data analytics in therapeutics development, decreasing development costs and impacting the lives of patients that may otherwise not receive the therapies they need.
Who is Leading the BFAI IPO?
The company's IPO is being headed by Viewtrade Securities and Wallachbeth Capital.
Use of BFAI IPO Proceeds
BullFrog says it intends to use the net proceeds for investing in research and development (25%), the repayment of debt (10%) and the remainder for working capital and general corporate purposes.
Adamas One Corp
This company is offering 3.15 million shares of common stock as part of its IPO, while an additional 4.02 million shares are being sold by selling stockholders.
Adamas says it anticipates that the initial public offering price of its common stock will be between $4.50 and $5.00 per share. The company is joining the NASDAQ index under the ticker symbol 'JEWL'.
What is Adamas One Corp?
Adamas produces diamonds and diamond materials using a process that it refers to as its diamond technology. The business says its lab-grown diamonds are not considered synthetic or simulant diamonds like cubic zirconia and moissanite.
The company intends to sell its products wholesale and retail. Adamas says it is in the initial phases of commercializing diamonds and diamond materials, and its primary mission is the development of a profitable and sustainable commercial production model for the manufacture and sale of diamonds and diamond materials.
By its own admission, the business currently has limited available commercial products and has sold minimal diamonds or diamond materials. Its current operations are dedicated to the research and development of its technology and the exploration of markets that it may exploit in the future.
Adamas says it is unable to predict the timing of its entry into any market in the future.
The business was incorporated in September 2018 in the state of Nevada.
Adamas and Scio Diamond
In 2019, the company acquired all the assets of Scio Diamond Technology Corporation. These consisted primarily of proprietary diamond-growing chemical reactors, patents and all intellectual property related. These were acquired for an aggregate of 1,500,000 shares of Adamas' common stock and payment to certain lenders of Scio of an aggregate of $2.1m in cash.
According to Adamas, Scio spent "tens of millions" of dollars on developing its technology but ran out of money before successfully commercializing its product.
Scio had been listed on the OTC market under the ticker 'SCIO,' but its registration was suspended by the SEC in August 2019 after failing to file reports.
Addressing Scio's failings, Adamas' IPO prospectus said:
It is our understanding and belief that the commercialization issues experienced by Scio were related to Scio’s inability to raise sufficient capital at reasonable rates. Scio also attempted to shift its production from solely industrial diamond materials to rough diamond gemstones and did not have the time or capital to fully make that shift in its production.
We have benefited from Scio’s development efforts on diamond gemstones and have a strategy to deliver finished diamond gemstones (as opposed to rough diamond gemstones) to the market, enabling us to participate in a higher margin sector with a better product. We believe that Scio did not have that option due to their capital constraints.
Who is Leading the JEWL Stock IPO?
The listing is being helmed by Alexander Capital LP.
JEWL IPO Use of Proceeds
Of the net proceeds from this offering, the company said it expected to use:
At least $8.1m for construction management and operating expenditures, including preparation and leasehold improvements at a 23,485-square-foot manufacturing and production facility already under lease in Greenville, South Carolina.
Around $0.6m for continued research and development related to developing new products and maintaining and seeking improvements to existing products.
Approximately $1.5m to upgrade sales and marketing capabilities.
The remainder is for working capital and other general corporate purposes.
