RMED - Ra Medical Systems to raise $6.2M via earlier issued warrants signs merger with Catheter Precision
- Ra Medical Systems ( NYSE: RMED ) announced a reduction in exercise price of all existing warrants (February 2022 issued) consisting of Series A Warrants and Series B Warrants, from $0.50/share to $0.28/share, and entry into a non-binding term sheet to merge with privately held Catheter Precision.
- It also entered into warrant inducement offer letters with certain investors to immediately exercise up to 22.2M of the Series A Warrants held by such investors at an exercise price of $0.28 with none of the investors electing to exercise any Series B Warrants.
- Investors who exercise their Series A Warrants will receive additional Series C Warrants to purchase 100% of the shares with an exercise price of $0.28 and a term of five years.
- The company expects to receive gross proceeds of ~$6.2M from the exercise of the Series A Warrants.
- Also, the company signed a non-binding summary of proposed terms with Catheter Precision, to acquire 100% of its outstanding equity interests.
- Post the term sheet terms, Catheter Precision securityholders will own 83.3% of the equity and equity holders of Ra Medical would own 16.7% of the equity of the combined company.
- Shares trading 43.1% down premarket.
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Ra Medical Systems to raise $6.2M via earlier issued warrants, signs merger with Catheter Precision