F45 moves to pull its shares from the New York Stock Exchange

Australian-founded gym chain F45 intends to delist its shares from the New York Stock Exchange (NYSE), after what one market observer dubbed a “disaster” run for the company following an initial public offering (IPO).

As reported by Smart Company, F45, which high-intensity interval workouts with functional training in a franchise model, announced on Wednesday that it intends to pull its shares from the NYSE after two years of public trading.

The company has fallen behind on public filings required for listing on the NYSE while its average share price has been below US$1 for 30 days.

“Going dark”, as delisting is known, will shave the ongoing costs associated with public listing, the company added, while noting its low trading price has hampered its ability to raise capital and attract institutional investors.

F45’s share price has plummeted since the announcement, from about US$0.70 a share on Monday to US$0.12 at time of writing.

F45 was valued at US$17 a share at its June 2021 IPO, going public at a time when generous USA monetary policy flooded the market with cash, encouraging investors to back a business that, as of March 2021, reported 2,247 franchises across 63 countries.

However, the economic slowdown made it harder for new franchisees to obtain the capital they needed to buy into the F45 model.

Separately, an in-house financing option F45 used to encourage existing franchisees to expand failed to eventuate, further curtailing growth.

F45 issued a dramatic downgrade to its revenue projections in July last year, halving its full-year 2021/22 revenue projections.

In its statement, F45 advised "the company will continue to focus on long-term growth, but without the distraction of short-term financial results and stock price movement."

Images: F45 combines high-intensity interval workouts with functional training (top, credit: F45) and F45 investor Mark Wahlberg (left) and F45 Chief Executive, Adam Gilchrist on day of the company's listing on the New York Stock Exchange on 15th July 2021 (below, credit: NYSE).