The IPO Buzz: Straddling the May-June Divide

Wall Street faces a short work week, with the U.S. stock markets closed Monday for Memorial Day and just two names on the IPO calendar. This week, the calendar also flips from May to June – with just one name on each side of the monthly divide. One deal, though, is not really an initial public offering. Let’s take a look.

The two names are Immuron Limited (IMRN – proposed) for May and KBL Merger Corp. IV (KBLMU – proposed) for June.

May’s Swan Song

Immuron, based in Victoria, Australia, is a clinical-stage biopharmaceutical company focused on the development and commercialization of a novel class of immunomodulator polyclonal antibodies to treat liver diseases, infectious diseases and other immune-mediated diseases such as colitis. Its lead product candidate, IMM-124E, targets non-alcoholic fatty liver disease, a condition linked to the high incidence of obesity in the United States.

OK: So far – so good.

Immuron’s prospectus says the company will offer 777,778 American Depositary Shares (ADS) at $10 to $12.50 each and 388,889 warrants at 1 cent each.

Now here’s where people have become confused.

Its prospectus also states: “Prior to this offering, the ADSs have not been listed on any stock exchange.” Some call this deal an initial public offering.

In fact, the prospectus also says that Immuron’s ordinary shares have traded on the Australian Securities Exchange (also known as the ASX) under the symbol “IMC” since April 30, 1999. This makes the deal a secondary offering.

Bankers plan to price the ADSs and warrants Tuesday evening, May 30, to trade Wednesday morning, May 31, on the NASDAQ Capital Market.

June’s Opening Act

KBL Merger, based in Newark, Delaware, was formed for the purpose of effecting a merger, capital stock exchange, stock purchase, asset acquisition or other similar business combination with focus on the health-care and related wellness industry.

The company is a “blank check” or special purpose acquisition company (SPAC) offering.

Bankers plan to price the SPAC late this week to trade on the NASDAQ Capital Market.

(For more information, please check the IPO profiles found on’s website.)

June’s Opening Days

This brings us to the week of June 5, 2017, and the calendar has two IPOs ready to be launched. But the month is young and waiting for the U.S. Securities and Exchange Commission to open on Tuesday morning. A lot could happen when the SEC’s filing window pops open again.

Stay tuned.


Disclosure: Neither the author nor anyone else on the staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and staff do not issue advice, recommendations or opinion.