- The shares of MedTech company Ra Medical Systems, Inc. ( NYSE: RMED ) added ~37% in the pre-market trading Monday on the announcement of a merger agreement with Catheter Precision, a medical device developer focused on cardiac electrophysiology procedures.
- Per the terms, Catheter Precision will become a subsidiary of RMED in a stock for stock reverse merger transaction. The Catheter Precision stakeholders are expected to take ~80% ownership of the combined company, while the rest will be RMED investors on a fully diluted basis.
- The boards of directors of both companies have approved the transaction, which is set to close before the end of the year, subject to certain conditions, including shareholder approval of both firms.
- David Jenkins, a veteran in developing medical startups, will act as the combined company's chief executive officer. Mr. Jenkins has helped run medical startup Transneuronix, Inc, which Medtronic ( MDT ) acquired in Jul. 2005.
- The product pipeline of U.S.-based Catheter Precision includes a vessel closure device which is anticipated to launch in 1H 2023.
- Today's agreement is in line with the non-binding terms the two companies signed in June.
For further details see:
Ra Medical jumps 37% on merger deal with Catheter Precision