Ladenburg acted as the Financial Advisor in the Merger and Exclusive Warrant Inducement Agent and Placement Agent in the $9.3 Million Equity Financing
Merger
Ra Medical Systems, Inc. (NYSE American: RMED) ("Ra Medical" or the "Company") announced the completion of its previously announced stock-for-stock merger transaction with Catheter Precision, Inc., a company focused on the cardiac electrophysiology market. Medtech veteran and Catheter Precision CEO and founder David Jenkins has joined Ra Medical's Board of Directors as Executive Chairman. Mr. Jenkins was instrumental in operating several medical device startups, including Transneuronix, Inc., which was acquired by Medtronic plc (NYSE: MDT) for $267 million in July 2005, and EP MedSystems, Inc., which was acquired by St. Jude Medical (now owned by Abbott (NYSE: ABT)) for $95.7 million in July 2008.
Catheter Precision stakeholders will convert outstanding debt and equity into non-voting Convertible Preferred Stock of RMED, representing approximately 87.7% of the total equity of Ra Medical, on a fully diluted basis, excluding out of the money convertible securities and Series E Warrants issued in the financing. Catheter Precision stakeholders, in the aggregate, are expected to own no more than 40% of the voting securities of Ra Medical for at least 18 months.
Ladenburg Thalmann & Co. Inc. acted as financial advisor to Ra Medical in connection with the merger.
$9.3 Million Equity Financing
Simultaneously with the merger, RMED entered into a warrant inducement offer letter and a securities purchase agreement for a private placement for gross proceeds of approximately $9.3 million. Under the warrant inducement offer letter, RMED will receive approximately $1.3 million of gross proceeds. Under a private placement, RMED will receive up to $8 million of gross proceeds, subject to various conditions including approval by RMED stockholders. Subject to closing the private placement and exercise of all repriced warrants, the Company estimates it will have approximately $12.5 million of net cash, which should provide at least two years of operating capital.
Ladenburg Thalmann & Co. Inc. acted as the exclusive warrant inducement agent and the exclusive placement agent in the equity financings.
About Catheter Precision, Inc.
Catheter Precision's lead product, VIVO™ (an acronym for View Into Ventricular Onset), is an FDA-cleared and CE mark product that utilizes non-invasive inputs to locate the origin of ventricular arrhythmias. VIVO™ has been used in more than 800 procedures in leading U.S. and European hospitals under a limited commercial launch that commenced in the third quarter of 2021. Preparations are underway for a full commercial launch in the first quarter of 2023. Catheter Precision's product portfolio also includes the Amigo®, a robotic arm that serves as a catheter control device. Catheter Precision is developing a third product, anticipated to be released in 2023, which is a device to assist in the closure of the percutaneous insertion site used in minimally invasive procedures, such as catheter ablation.
The information and material presented is provided for informational purposes only and are not to be used or considered as an offer or the solicitation of an offer to sell or buy any securities mentioned herein.