Ra Medical Systems today announced a reduction in the exercise price of all existing warrants issued in February and has entered into a non-binding term sheet to merge with Catheter Precision.
The price reduction affects all existing warrants issued in the February 2022 public offering, consisting of Series A warrants and Series B warrants, from 50¢ per share to 28¢ per share.
Carlsbad, California-based Ra Medical entered into warrant inducement offer letters with certain investors to immediately exercise up to an aggregate of 22.2 million of the Series A warrants held by the investors at a price of 28¢.No investors elected to exercise any Series B warrants.
Investors who exercise Series A warrants will receive additional Series C warrants to purchase 100% of the shares exercised pursuant to the Series A warrants, which will have an exercise price of 28¢ and a term of five years.
Ra Medical anticipates approximately $6.2 million gross proceeds from the Series A warrants.
The excimer laser and catheter maker also signed a non-binding agreement with Catheter Precision to acquire 100% of the outstanding equity interests of the Ledgewood, N.J.-based company. Through the deal, Catheter Precision security holders would own 83.3% of the equity and equity holders of Ra Medical would own 16.7% of the equity of the merged companies on a fully diluted basis.
Ra Medical said the proposed business combination would give its investors exposure to Catheter Precision’s line of cardiac arrhythmia treatment devices.
