Based in the US, Catheter Precision is engaged in developing technology for electrophysiology procedures by partnering with physicians and continuously advancing its products.
Ra Medical to merge with privately held Catheter Precision. (Credit: naor eliyahu from Pixabay)
Ra Medical Systems announced a decrease in the exercise price of all outstanding warrants issued in the February 2022 public offering from $0.50 per share to $0.28 per share.
The US-based firm also announced the execution of a non-binding term sheet to merge with privately held Catheter Precision.
Ra Medical engaged in warrant inducement offer letters with a select group of investors to promptly exercise up to a total of 22.2 million Series A Warrants held by such investors at an exercise price of $0.28.
Ra Medical’s all existing warrants include Series A Warrants and Series B Warrants, none of the investors chose to exercise any Series B Warrants.
According to the firm, investors who exercise their Series A Warrants will get additional Series C Warrants, a five-year term and an exercise price of $0.28, to purchase all of the shares that were acquired using the Series A Warrants.
Ra Medical anticipates that the Series A Warrants will be exercised for an approximate total of $6.2m in gross proceeds.
The deal to acquire 100% of the outstanding equity interests of Catheter Precision was announced last month.
Upon completion of the deal, equity holders of Catheter Precision would own 83.3% of the combined company’s equity and equity holders of Ra Medical would own 16.7%.
In addition to allowing the combined company to explore funding its strategic initiatives for Catheter Precision devices through the public capital markets,
The proposed business combination would provide Ra Medical investors with access to Catheter Precision’s advanced devices that are intended to improve the treatment of cardiac arrhythmias.
It will also allow the new entity to explore funding its strategic initiatives for Catheter Precision devices through the public capital markets.
The parameters of a formal merger agreement are still being negotiated while both parties finish their separate reviews of the other party’s due diligence.
The merger is furthermore subject to several prerequisite criteria that must be met or waived, some of which call for third parties’ permission or agreement.