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Sustainable product maker Med-X slashes proposed valuation by 78% ahead of $9 million IPO

October 26, 2022

Med-X, which manufactures natural pesticides and other green products under various brands, revised the terms for its upcoming IPO on Wednesday. In its latest filing, the company also added Craft Capital Management as an underwriter, and disclosed the approval of a 1-for-60 reverse stock split to be effected prior to the closing of this offering. 

The Canoga Park, CA-based company now plans to raise $9 million by offering 2.1 million shares at $4.00. The company had most recently filed to offer 1.7 million shares at a range of $4.00 to $4.30. At the revised terms, Med-X will raise 21% more in proceeds than previously anticipated but command a market value of $18 million (-78% vs. previous terms).

Because the company's post-IPO market cap is below $50 million, Med-X will be excluded from Renaissance Capital's 2022 IPO stats.

Med-X is primarily engaged in the business of supplying environmentally friendly health and wellness products to various industries. The company's Nature-Cide products are all-natural essential oil blends for indoor and outdoor pesticide, insecticide, and/or repellent developed for professional commercial and residential pest control, turf care, janitorial, hospitality, transportation, vector control, as well as school districts and agriculture, including the cannabis and hemp industries. The company also produces heating and cooling packs (Thermal-Aid brand) as well as essential oil pain management cream (Malibu brand).

Med-X was founded in 2014 and booked $1 million in revenue for the 12 months ended June 30, 2022. It plans to list on the Nasdaq under the symbol MXRX. EF Hutton and Craft Capital Management are the joint bookrunners on the deal.