RMED - Ra Medical Catheter Precision complete merger plan to raise up to $9.3M in equity

Ra Medical Systems ( NYSE: RMED ) completed its stock-for-stock merger with Catheter Precision and separately entered a equity financing agreement for up to $9.3M.

Catheter Precision is focused on the cardiac electrophysiology market and its lead product is VIVO, an FDA-cleared and CE mark product that uses non-invasive inputs to locate the origin of ventricular arrhythmias, according to Ra Medical.

Catheter Precision Founder and CEO David Jenkins has joined Ra Medical's board as executive chairman.

In conjunction with the merger, Catheter stakeholders will convert ~$25M of outstanding debt and all Catheter equity into non-voting convertible preferred stock of RMED, which is potentially convertible into ~15.4M common shares of RMED, including assumed Catheter options, and representing ~87.7% of the total equity of Ra Medical.

The company's stock will resume trading on Jan. 10 under the symbol RMED on the NYSE American.

Ra Medical CEO Will McGuire and interim CFO Brian Conn will remain with the company immediately following the closing to support the transition, the company addd.

Simultaneously with the merger, RMED has entered into a warrant inducement offer letter and a securities purchase agreement for a private placement for gross proceeds of ~$9.3M.

Under the warrant inducement offer letter, RMED will receive ~ $1.3M in gross proceeds, if the repriced warrants are exercised in full. Under a private placement, RMED will receive up to $8M in gross proceeds, subject to conditions including approval by RMED stockholders.

The warrant inducement offer letter includes the expected exercise of ~331.6K outstanding warrants at a reduced exercise price of $4 and the issuance of ~331.6K new warrants, exercisable for five years at $4 per share.

Under the private placement, RMED will issue Class A units consisting of one common share of RMED and two warrants, each to buy one common share.

The company said that for beneficial ownership purposes, in lieu of Class A units, RMED will issue Class B units consisting of one share of non-voting convertible preferred stock and two warrants.

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