Akumin files for initial public offering – updated

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By Ted Liu

Akumin Inc. has filed a preliminary long form prospectus, qualifying the distribution 9,919,227 common shares upon the exercise of 9,407,223 special warrants and 512,004 broker warrants.

The special warrants were distributed on August 9, 2017, further to the conversion of an aggregate of 9,407,223 subscription receipts, previously issued in subsequent tranches on July 13, 2017 and July 27, 2017, at US $3.50 per subscription receipt for gross proceeds of US $32,925,280.50.

Net proceeds from the subscription recipient financing have been used to fund portion of the cash price of the US $94 million acquisition of Fort Worth, Texas based Preferred Medical Holdings, LLC.

Clarus Securities Inc. and PowerOne Capital Markets Limited acted as agents of the subscription receipt offering. Stikeman Elliott LLP and Borden Ladner Gervais LLP act as legal counsels to Akumin and the agents respectively.

Akumin will likely to seek listing of its common shares on the Toronto Stock Exchange (TSX).

Upon closing of the distribution, Akumin will have 50,848,875 common shares outstanding. Stan Dunford, Chairman & CEO of Tri-Line Carriers LP and CEO of Contrans Flatbed Group LP, is the largest shareholder, controlling 14.2% of the outstanding common shares.

Akumin is a provider of freestanding, fixed-site outpatient diagnostic imaging services in the United States with 71 centers owned, operated or managed by us located in Florida, Pennsylvania, Delaware, Texas, Illinois and Kansas as of September 30, 2017. Its services include MRI, CT, positron emission tomography (PET), radiology, ultrasound, diagnostic radiology (Xray), mammography, arthography and other related procedures. Akumin has no operating activities in Canada.

Akumin was formed on August 12, 2015 through the amalgamation of Elite Imaging Inc. with 2473241 Ontario Inc., an Ontario company formed on June 30, 2015. Elite Imaging was incorporated under the OBCA on September 23, 2013 as “Tristate Canadian Holdings Inc.” and changed its name to Elite Imaging Inc. on September 17, 2014. Elite Imaging changed its name to Akumin Inc. on March 22, 2017.

Akumin is led by founder Riadh Zine, President & CEO and director and its senior management team includes Rohit Navani, EVP & COO, Mohammad Saleem, CFO, Amy Adams, SVP, Clinical Development, Laura Kassa, SVP, Operations.

CORRECTION: Our previous story contained incorrect information and this story has been updated.

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