With only a few days left for 2022 to end, there aren’t many initial public offerings scheduled for the rest of the year, which has witnessed a massive slowdown in public listings compared to last year. Going forward, technology and healthcare businesses are expected to dominate the IPO scene, as they did in recent months.
Recently, Nava Health MD LLC, a healthcare company focused on integrative wellness, revealed plans to go public through an initial public offering. As per the regulatory filing, the company intends to offer around two million common shares. Pursuant to the offering, the shares will trade on the Nasdaq Capital Market under the symbol NAVA. The IPO will be managed by WestPark Capital, Inc.
The Offering
At an estimated price of $6.0 per share, which is the midpoint of the price range set by the management, the offering is expected to generate net proceeds of up to $12 million. The funds will be used mainly for opening additional business locations, purchasing therapy equipment, investing in Nava Client, and for further brand development. A part of the proceeds will be used for expanding services and building talent infrastructure to support growth and for general corporate purposes.
In the nine months that ended September 2022, Nava’s revenues nearly doubled to $9.44 million. However, the bottom line slipped into negative territory due to a sharp increase in operating expenses. The company reported a net loss of $0.36 million for the period, compared to a profit last year. The company had a cash balance of $0.74 million at the end of September.
Unique Model
Nava, which was formed in June 2013, follows a business model that combines traditional, functional, holistic, and regenerative medicines, supported by a data-driven and personalized approach that helps optimize health and increase longevity. Currently operating four locations, Nava is planning to open up to eight new units by the end of 2023.
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The company looks to gain an edge over traditional healthcare providers by filling gaps in conventional healthcare that focuses on treating symptoms and diseases through evidence-based care and procedures. In contrast, Nava’s approach is to prevent diseases and address their underlying causes by integrating conventional medicine and complementary/alternative medicine.
Strategy
The focus of Nava’s growth strategy is to expand geographically, open additional locations, acquire wellness centers in new markets, and diversify into other lines of business for vertical integration. The main risks facing the company, in terms of achieving its goals, are unfavorable operating conditions due to economic uncertainties and geopolitical tensions.