Update 06/16/2017: WOW… Blowout day! Congrats to all the Access IPOs subscribers who got in on this one! Myomo Chairman and CEO to ring the closing bell on the NYSE MKT today to commemorate the historic Myomo IPO. The stock traded as high as $18.00, up 140% from the price many of us paid. That’s IPO investing!
Sold half my position which covers my cost. Letting the rest ride!
Did you miss out on the Myomo IPO? Subscribers learned about it back in April. Sign up for alerts below.
Update 06/09/2017: The Myomo IPO is closed! Trading is expected to begin on Monday, June 12th. For those of us who used the escrow option, looks like we’ll need to contact our brokers to initiate the share transfer. I received a second email explaining how to do that. Seems like a standard share transfer. Good luck to all investors!
See the press release here: Myomo, Inc. Completes Historic Initial Public Offering. The company and its partners raised $5.0 million selling 665,498 shares at $7.50 to public investors. Plus another $2.9 million was sold privately to early investors for a total of $7.9 million. Proceeds will be used to grow its business and the MyoPro product line.
Note: If you missed out on the Myomo IPO and are interested in future IPO opportunities, make sure to Subscribe to Access IPOs to receive alerts on future opportunities. Subscribers learned about Myomo here first!
Update 05/26/2017: Myomo IPO interview on Cheddar with CEO Paul Gudonis and Tripoint Global Equities CEO Mark Elenowitz. Very informative. Check it out here.
Update on the Myomo IPO 05/24/2017: Received another email from Tripoint Global Equities CEO Mark Elenowitz:
The Myomo IPO is continuing to make progress and coming into the end of the offering period. We will continue to provide you updates as we get closer to the closing of the offering and listing on the NYSE MKT under the symbol “MYO” with an anticipated closing in early June.
Update on the Myomo IPO 05/09/2017: Received an email from Tripoint Global Equities CEO Mark Elenowitz:
We are pleased to inform you that the Myomo Offering has been extended a couple of weeks. The Company has extended and expanded the crowd component of the offering to allow additional investors the opportunity to invest alongside the Wall Street community. In addition, the Company will be filing its 1st quarter financials with the Securities & Exchange Commission (“SEC”).
Not sure what to make of this. Often, delays mean that an IPO is less likely to succeed. However, this could mean what it says, the company is increasing the offering. Haven’t seen any new SEC filings to confirm that yet. Hearing some other unconfirmed chatter that demand is good. We shall see.
I came across an exciting new IPO opportunity that, if it goes through, will make history as the first Reg A+ IPO to list on the New York Stock Exchange (NYSE) MKT exchange. The company is called Myomo.
Myomo (derived from My Own Motion) is a medical device company specializing in myoelectric braces for people with neuromuscular disorders. They’ve developed a mechanical orthosis called the MyoPro that assists people with debilitating arm and hand immobilization due to stroke, spinal cord injury, multiple sclerosis and other neurological problems.
The MyoPro device is a patient-controlled robotic exoskeleton for the arm. It senses a patient’s own neurological signals and enables the restoration of the use of the arm and hand.
Super cool technology. Check out the Myomo website to see pictures and videos.
The technology uses a non-invasive brain-machine interface developed at Massachusetts Institute of Technology (MIT). The two main patents are exclusively licensed to Myomo and don’t expire until 2023.
This innovative company is not only pushing the limits of orthotics, it’s attempting to blaze a trail in equity crowdfunding.
This IPO opportunity is available to both accredited and non-accredited investors over the age of 18.
The First Reg A+ IPO On the New York Stock Exchange
Reg A+ IPOs, also known as mini-ipos, are a new way for smaller companies to raise funds as a result of the bipartisan Jumpstart Our Business Startups (JOBS) Act of 2012.
The JOBS Act law was clarified in March 2016, opening up IPO crowdfunding to non-accredited investors (that is, investors with a net worth below $1 million or $200,000 in income).
So far, only one Reg A+ IPO has successfully listed on an exchange. That was the Elio Motors (ELIO) IPO which raised $17 million in early 2016 and trades on the OTCQX over-the-counter exchange.
The Myomo IPO aims to raise 2,000,000 at $7.50 per share, or $15,000,000 for this offering. If successful, the company will be valued at $35,000,000.
What makes this IPO even more intriguing, is it’s attempting to be the first Reg A+ IPO to list on the NYSE MKT. The NYSE is known for more stringent standards. A listing there further legitimizes the product and potential of the company.
The company plans to trade under the symbol “MYO”.
Resources for Due Diligence
Before investing in this or any IPO, investors need to perform their own due diligence. The mention of an IPO on Access IPOs is not a recommendation to buy or sell. We make readers aware of opportunities, but it’s up to the investor to decide if the opportunity is right for their own portfolio.
Here are the links to the information to analyze this opportunity:
Press Kit with executive biographies, additional information, and more pictures
As with any IPO, the Company Presentation is full of optimism and market potential to drive interest in the offering. This product does seem to address an unmet medical need. Myomo is led by some high-caliber brain power, and its patent exclusivity may provide some moat protection.
However, hurdles remain, including wide adaptation of insurance reimbursement, scaling and distribution, and inconsistent revenue. Revenue for 2016 was up 60% to $1.1 million with net losses of $3.6 million.
The company is headquartered in Cambridge, Mass., and has ~22 employees. Since formation, Myomo has sold more than 600+ total units, including the MyoPro and its predecessors.
How To Invest In The Myomo IPO
The minimum investment amount is just $7.50 for one share. Closing is expected in the first half of May, so don’t drag your feet.
You can invest two different ways:
- Invest choosing the “escrow” option and have shares delivered to you or your brokerage
- Open an account with Banq.co to invest
If you invest using the escrow option, you can choose to have shares delivered to your broker electronically, held at the transfer agent, or delivered to your residence (as a certificate).
This isn’t the normal process we’re used to for investing IPOs. You have to fill out information on an online form and then send money to the company’s bank.
Initiate your request to invest from the Myomo offering page at Banq. Check out the videos and company highlights while you’re there. You can also access the Form 1-A and presentation there.
Click the Invest Now button to get started. Enter some basic information. Then choose to open an account or complete via escrow.
Then you’ll be taken to an online form powered by Jotforms. Enter the number of shares you want to purchase. Continue on to input more basic information, then eligibility certifications.
If you’re going with the escrow option, choose your delivery method. To electronically deliver shares to a broker, you’ll be required to include what’s called the DTC number for your broker. You can find your broker’s number in the list here. The example below uses TD Ameritrade.
Once you’ve completed the forms and submitted your request, you’ll receive an email with instructions on how to fund your purchase.
For electronic share transfers, expect to see the shares in your account within 24 hours of the closing.
Since the death of one of the primary IPO brokerages, access to IPOs may not always be easy. Especially with these Reg A+ style IPOs. Their budgets are small.
Luckily, websites such as Banq, WR Hambrecht, SeedInvest, and StartEngine are here to take advantage of the crowdfunding opportunities of today and the future.
Full disclosure: I went through the reservation steps and requested a small lot of shares of the Myomo IPO for myself. In part, I’m curious about the IPO process through Banq. In addition, this is a unique opportunity to be a part of the first Reg A+ IPO on the NYSE MKT. But I acknowledge this is high-risk territory and kept my investment small.
Knowing the NYSE, this IPO may get some free publicity at the opening bell and on CNBC. Being an innovative medical company backed by smart people and advanced patents, it may interest long-term institutional investors and traders alike. At only $35 million valuation, it’s a higher risk investment, with higher return potential.
Expect volatility and possibly illiquidity. Invest at your own risk if you choose to participate.