PHILADELPHIA, Nov. 07, 2022 (GLOBE NEWSWIRE) — Barrack, Rodos & Bacine (BR&B) announces that it is continuing its investigation into F45 Training Holdings Inc. (“F45”). FXLV for potential violations of federal securities laws.
F45 Training Holdings Inc., a Mark Wahlberg-backed Texas-based fitness franchisor, went public in July 2021 when it sold 18.75 million shares at $16 per share. The company reported results and provided guidance that was broadly expected by the market for about a year after the IPO.
However, on July 26, 2022, just one year after the IPO, F45 issued a press release announcing: (1) a reduction of its financial guidance from a range of $255-$275 million to a new range of $120 up to $120 $130 million; (2) for the year it would open about 60% fewer gyms than promised two months earlier (or 350 to 450 of them versus 1,000); (3) a $250 million line of credit “will not be available”; (4) the company laid off about 110 employees; and (5) the CEO, Adam Gilchrist, had resigned the previous month. The announcement came after Wahlberg sold significant amounts of his own stock in the company. CEO Gilchrist received over $10 million in payments upon his departure.
The disclosures in the press release caused the price of F45 shares to fall by over 60% on July 27, 2022.
Additionally, Mark Wahlberg sold over a million shares of F45 earlier this year, and the company’s co-founder and former CEO, Adam Gilchrist, has now…
