IPO Preview: SAVU, KWE, BFAI

By Duncan Ferris

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The upcoming IPOs in focus this week include lab-grown organ outfit BioLife4D Corp, non-lethal weapons developer Kwesst and AI healthcare specialists BullFrog AI.

Photo by jesse orrico on Unsplash

Here are some upcoming IPOs worth taking a look at:

BioLife4D Corp

This business is seeking to offer 2,419,354 units to investors. Each of these consists of one share of common stock and two warrants to each purchase one share of common stock.

The initial public offering price per unit is expected to be between $5.20 and $7.20. Meanwhile, the exercise price of the warrant will be $5.95.

The listing will see the company's stock joining the NASDAQ index under the ticker symbol 'SAVU'. The date of the company's IPO is currently unknown.

What Does BioLife4D Do?

In short, BioLife4D wants to build human hearts. The company intends to transform heart disease treatment and the organ transplantation process with its technology.

The business says it hopes to be able to construct fully-functioning patient-specific hearts through a 3D bioprinting process that uses the patient's own cells. It argues that this will eliminate long waiting times for transplants, as well as the risk of organ rejection from the recipient.

In order to achieve this goal, BioLife4D says it does not need to invent new technology but rather improve, adopt, and optimize current technologies to create a commercially viable and sustainable process.

However, BioLife4D's hearts are not flying off the shelves just yet.

The company has yet to make any significant revenues and remains at the research and development stage. Its current focus is on the development of a functional mini-heart that can be utilized for cardiotoxicity testing.

The company does acknowledge that it is "impossible" to predict the exact amount of time it will take to fully optimize this process. It notes that the FDA approval process is a particularly difficult part of predicting the path ahead.

Who is Leading the SAVU IPO?

The underwriter behind the offering is Aegis Capital Corp.

Use of SAVU IPO Proceeds

When it comes to using the proceeds from its IPO, BioLife4D says $4.2m will go towards additional lab equipment. The business estimates that $2.2m will be needed for lab equipment for pre-mini heart testing and $2m for post-mini heart testing.

A further $3m will be needed for the mini-heart's raw materials, while $1.8m will be necessary for lab expenses and testing.

Next, $1.3m is earmarked for additional staff, consultants, advisors, intellectual property research, filings, defense, security and investor relations. A further $1.1m will be used to repay a working capital loan.

Finally, $1.3m will be reserved as working capital and a further $600,000 is expected to be required for additional expenses related to compliance. 

Kwesst Micro Systems Inc

This business plans to join the NASDAQ index with an IPO of 2,323,232 common units. Each of these units will consist of one share of common stock and one warrant. Kwesst estimated the offering price range for the IPO to be between $4.71 and $5.21 per common unit.

The warrants are expected to have an exercise price equal to 125% of the public offering price of one common unit and expire five years from the date of issuance.

The date of the IPO is currently unknown.

While the IPO will see the company joining the NASDAQ index under the ticker symbol 'KWE', it has already publicly listed its stock in other countries. Stock is already traded on the TSX Venture Exchange under the symbol 'KWE.V', the Frankfurt Stock Exchange under the symbol '62U' and the OTCQB Venture Market under the symbol 'KWEMF'. 

It's also worth noting that, in addition to its stateside offering, the company is hoping to raise a further $3m from a Canadian listing on the TSX.

What Does Kwesst Do?

Kwesst is primarily concerned with the development and manufacture of non-lethal weapons. The company says its goal is to provide professionals and consumers with reliable, safer and non-lethal alternatives to the use of firearms. 

Kwesst says its products are designed to offer customers effective solutions for personal, family and community protection that do not require the use of lethal force and are intended for both the consumer and security professional markets. 

At present, the company's non-lethal product suite includes a selection of launchers, firing systems and cartridges, which can contain irritant powders or color powders for marking belligerents.

The business also has a hand in digitization and counter-threat. These operations see Kwesst offering an app to improve soldiers' or security professionals' situational awareness, as well as electronic warfare devices.

Who is Leading the KWE IPO?

The listing is being led by ThinkEquity.

Use of KWE IPO Proceeds

Kwesst says it expects to use the net proceeds from this offering, including the Canadian offering, for working capital and other general corporate purposes. Further, the Canadian Offering proceeds will be used principally to repay part or all of two of the company's outstanding loans.

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.

Enjoyed this IPO coverage? Check out our preview of this week's earnings updates!

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In this article:

Topics:
Defense
Biotechnology
Industries:
Healthcare
Information Technology
Consumer Discretionary

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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