Invizyne Technologies IPO (IZTC): Everything You Need to Know

Arthur Reynolds
Nov 13, 2024
4 min read

Invizyne Technologies Inc., a cutting-edge biotech company, is gearing up for an initial public offering (IPO) on the Nasdaq under the symbol IZTC. With MDB Capital Holdings as its principal shareholder, Invizyne plans to raise substantial funds through the IPO to advance its pioneering biotech initiatives. This article explores the details of Invizyne's IPO, including the offering structure, pricing, shareholder insights, and potential market impact.

What’s the Story Behind Invizyne Technologies Inc.?

Invizyne Technologies Inc., headquartered in Monrovia, California, specializes in synthetic biology and biotech innovations. The company aims to revolutionize how biotech products are developed by leveraging advanced technology to produce bio-based solutions. From pharmaceuticals to sustainable materials, Invizyne's mission is to transform various industries with sustainable and efficient biotech processes.

With an emerging growth company status under the Jumpstart Our Business Startups Act (JOBS Act), Invizyne benefits from reduced reporting requirements, which can help it focus on growth initiatives rather than stringent regulatory hurdles. This IPO marks an essential milestone for Invizyne as it seeks a broader shareholder base and financial resources to drive future innovations.

Key IPO Details for Invizyne Technologies

Here are the main points investors need to know about Invizyne’s upcoming IPO:

Number of Shares: Invizyne is offering 1,875,000 shares of common stock at an initial price of $8.00 per share.
Pricing and Market Strategy: The pricing was determined through negotiations between Invizyne and its underwriter, MDB Capital. The shares are set to be listed on Nasdaq under the ticker IZTC, contingent on Nasdaq approval. A successful listing is a closing condition of the offering, so securing this is crucial for the IPO's completion.
Concurrent Private Offering: Alongside the public offering, Invizyne is conducting a private placement that includes up to 184,375 warrants. These are being issued to accredited investors at a rate of one warrant for every four shares purchased in the public offering, with an exercise price of $8.00 per share.
Underwriting and Financial Support: Invizyne has engaged MDB Capital (operating as Public Ventures, LLC) as its lead underwriter. MDB, being Invizyne's majority shareholder with a 62.86% stake, is aligned closely with Invizyne's strategic goals. To comply with Financial Industry Regulatory Authority (FINRA) standards due to MDB’s ownership stake, Digital Offering LLC will act as an independent underwriter.

Detailed Breakdown of the Offering

Invizyne’s IPO is strategically structured to maximize investor engagement while leveraging MDB Capital’s network. Here’s a closer look at the structure:

1. Public Offering Prospectus

Shares Offered: 1,875,000 shares at $8.00 per share.
Total Gross Proceeds: Estimated at $15 million before deducting underwriting discounts, fees, and offering expenses.
Net Proceeds: After an 8% underwriting fee and other expenses, the company expects net proceeds to be around $13.8 million.

2. Warrants in Concurrent Private Offering

Accredited investors participating in the concurrent private offering can acquire Private Warrants at $0.125 per warrant. These warrants carry an exercise price of $8.00, become exercisable six months post-issuance, and expire five years later.
Anti-dilution and Blocker Provisions: These provisions protect investors from future dilution, a common feature in private offerings designed to secure investor interests.

3. Share Allocation Preference

Preference in the share allocation will go to holders of MDB Capital Holdings Class A shares and beneficial shareholders of both MDB and Invizyne. This structure reflects MDB's objective to maintain a focused, long-term investor base within its network.

Key Players in Invizyne’s IPO

The close relationship between Invizyne and MDB Capital is a noteworthy aspect of this IPO. MDB Capital, not only the lead underwriter but also Invizyne's majority shareholder, benefits from an in-depth understanding of Invizyne’s technology, potential, and market strategy. Digital Offering LLC, a qualified independent underwriter, has joined to ensure compliance with regulatory requirements regarding underwriter independence and conflict of interest due to MDB’s ownership.

Risks to Consider for Potential Investors

Investing in biotech companies, particularly emerging ones like Invizyne, comes with high risks. Here are some highlighted in the prospectus:

Market Risk: Biotech markets are volatile, and as a new public company, Invizyne’s stock could experience significant fluctuations.
Regulatory Approvals: The Nasdaq listing approval remains a condition for the IPO, and failure to secure it could delay or alter the terms of the offering.
Operational Dependence on MDB: Given MDB’s significant ownership and the role of its directors in Invizyne, this dependence presents potential governance challenges.
Warrant Risks: The concurrent private placement of warrants introduces complexities in stock performance, especially given the exercise terms, which could impact the share value and investor confidence over time.

What’s Next for Invizyne Post-IPO?

Upon completing the IPO, Invizyne aims to accelerate its synthetic biology advancements and expand into new market segments. The funds raised will likely support R&D, operational expansion, and strategic partnerships, critical for sustaining growth in the biotech industry. Listing on Nasdaq will also raise the company’s profile and potentially attract more significant institutional investments as it grows.

Investor Takeaways

Invizyne’s IPO offers an opportunity for investors to participate in a promising biotech company with a strong foundation in synthetic biology. However, given the high-risk nature of early-stage biotech investments, potential investors should carefully consider the outlined risks and conduct thorough due diligence before committing.

In summary:

Offering Details: 1,875,000 shares at $8.00 per share, targeting $15 million in gross proceeds.
Majority Shareholder: MDB Capital Holdings, a leading investor and strategic partner.
Listing Goal: A Nasdaq listing under the ticker IZTC, subject to approval.
Potential Upsides: Expanding biotech market presence, innovative research, and MDB’s support.
Considerations: Biotech market volatility, regulatory dependency, and warrant structure implications.

FAQs on Invizyne’s IPO

When will Invizyne be listed on Nasdaq?

The listing date depends on Nasdaq’s final approval, which is a condition for the offering. If all goes as planned, the shares should begin trading shortly after the IPO closes.

What are the primary risks associated with this IPO?

Biotech stocks can be volatile, and the company depends heavily on MDB Capital’s support and leadership. Potential dilution from warrants in the concurrent private offering is another factor to consider.

How can I participate in the IPO?

Interested investors can indicate interest through their brokers or dealers, with priority given to MDB Capital Class A shareholders and other associated holders.