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

August 18, 2023

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).

16th May 2023 - F45 reaches 10 years of operations

31st March 2023 - F45 announces leadership changes with Mark Wahlberg named Chief Brand Officer

27th March 2023 - 10% of Australia’s F45 studios up for sale

22nd March 2023 - F45 launches new one-day only workout class inspired by Netflix’s Wellmania series

3rd March 2023 - Media advises of closing of F45 studios as founder reportedly being chased for $10 million by creditors

19th January 2023 - F45 launches first ever Australian brand campaign

5th January 2023 - US lawyers remind shareholders of opportunity to participate in class action against F45

21st November 2022 - Chief Financial Officer Chris Payne leaves troubled F45

6th October 2022 - Reports suggest that F45 shareholders Mark Wahlberg and Adam Gilchrist look to take the business private

16th August 2022 - Loss of confidence sees mass cancellation of F45 franchise sales

12th August 2022 - F45 co-founder’s Reunion Training business enters administration

29th July 2022 - Outgoing F45 Chief Executive Adam Gilchrist looks back on goal to ‘change people’s lives by creating the world’s best workout’

27th July 2022 - F45 Training announces layoffs for almost half its corporate staff after revealing projected revenue fall

8th July 2022 - F45 Training partners with education organisations Onfit Training College and ISSA

1st July 2022 - Canstar Blue again rates F45 for delivering highest levels of customer satisfaction among Australian gyms

21st June 2022 - F45 caught trademarking Bodyfit name after Federal Court loss

3rd November 2021 - What is driving the financial success of F45, Body Fit Training and Fitstop?

16th July 2021 - New York Stock Exchange listing sees F45 valued at more than US$1.5 billion

7th July 2021 - F45 Training moving towards New York Stock Exchange listing with potential US$1.5 billion valuation

9th November 2020 - F45 recognised again for delivering highest level of customer satisfaction

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