SmileDirectClub shares plunge in public debut, CFO says he’s not concerned

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SmileDirectClub shares plunge in public debut, CFO says he's not concerned

SmileDirectClub openedlower at around 14 percent on Thursday during its Nasdaq debut after pricing above its $19-$23 range on Wednesday. The stock value fell down by 16 percent to nearly $19 by afternoon trading.

Kyle Wailes, the CEO of SmileDirectClub told Yahoo Finance that the firm is not getting affected by the debut response, considering the long-standing potential of the firm.

Founded in the year 2014, SmileDirectClub went on to expanding into new items like overnight retailers, lip balm and teeth whitening. Besides, it has also launched across 3 nations besides the United States as well as signed deals with Walgreen Boots Alliance and CVS Health Fenkel to launch new shops in its stores.

According to Alex Fenkel, co-founder of SmileDirectClub, he is mainly upbeat on the idea of opening around 1500 stores within CVS with time. Wailes said that the firm is talking to other retailers to develop similar relationships.

These expansion attempts have driven SmileDirectClub to edge of profitability this year in contrast to other IPOs like Lyft, Slack and Uber.

Up till June, the sales of SmileDirectClub surged by 113 percent to $373mn. The operating losses on the other hand tallied at $15.7mn lower from the sum of $19mn recorded last year.

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John Parker is a finance writer and journalist based in the Outer Banks, NC.

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