Infinite Group (OTCQB:IMCI) has filed to uplist its shares to Nasdaq and conduct a $15M initial public offering in part to fund its planned acquisition of fellow cybersecurity firm Pratum.
The company, which provides cybersecurity software and consulting services, said it plans to offer $15M in units, with each unit consisting of one common share plus one warrant to buy one share. No other terms were disclosed.
Infinite’s shares are currently traded OTC under the symbol IMCI, with the company having a market capitalization of $5M at the end of Monday. Aegis Capital is serving as lead bookrunner.
The company hopes to list its shares on Nasdaq under the same symbol and plans to institute a reverse stock split in the range of 3-to-1 to 75-to-1 in advance of the offering.
For 2021, the company reported a net loss of $1.6M on revenue of $7.2M. Its auditors also said they had concerns about the company’s ability to remain in business unless it improved its operating cash flow, managed the settlement dates of its obligations, and arranged for alternative equity or long-term financing to replace current obligations.
Infinite said that it believes its planned acquisition of Pratum will help increase cash flow. Pratum had sales of $4.4M in 2021. Infinite plans to pay $8.5M in cash for the company. The deal is expected to close in the first half of 2022.
Source : https://seekingalpha.com/news/3820588-cybersecurity-firm-infinite-group-files-to-uplist-to-nasdaq-raise-15m-in-ipo