Kindly MD stock tumbles after filing $5 billion ATM offering
Investing.com -- Kindly MD Inc. (NASDAQ:NAKA) stock plunged 21.9% after the healthcare services provider and Bitcoin treasury vehicle announced it has filed for an at-the-market (ATM) equity offering program of up to $5 billion.
The company said it intends to use the net proceeds from the ATM Program for general corporate purposes, including its Bitcoin Treasury Strategy, working capital, funding acquisitions, capital expenditures, and investing in existing and future projects.
The steep decline in share price reflects investor concerns about potential dilution from the significant size of the offering, which could substantially increase the company’s outstanding shares.
"The launch of the ATM Program represents a pivotal step in our long-term capital strategy," said David Bailey, Chief Executive Officer and Chairman of KindlyMD. "Following the successful completion of our merger between KindlyMD and Nakamoto just two weeks ago and our initial purchase of 5,744 Bitcoin, this initiative is the natural next phase of our growth plan."
The company noted that sales of shares under the ATM program will be made through various sales agents including TD Securities, Cantor, B. Riley Securities, and others. The timing and amount of any sales will be determined by factors considered by the company, with sales potentially made at prevailing market prices or prices related to prevailing market prices.
The ATM filing comes shortly after Kindly MD completed its merger with Nakamoto Holdings Inc., positioning the combined entity as both a healthcare services provider and a vehicle for Bitcoin investment.
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