Catheter Precision, Inc. Announces Exercise of Warrants for $4.9 Million of Gross Proceeds

Rhea-AI Summary

Catheter Precision (NYSE American:VTAK) has secured $4.9 million in gross proceeds through warrant exercises. The company entered into a definitive agreement for the immediate exercise of Series E, F, G, H, and I warrants to purchase 5,347,981 shares at a reduced price of $0.70 per share, generating $3.7 million. An additional $1.185 million was received through warrant exercises in the past week. In exchange, the company will issue new unregistered Series K warrants for up to 10,695,962 shares at $0.70, exercisable after shareholder approval with a 5.5-year term.

Positive

• Secured $4.9 million in immediate gross proceeds through warrant exercises
• Successfully reduced warrant exercise price to $0.70 to incentivize exercise

Negative

• Potential future dilution from new Series K warrants for 10,695,962 shares
• New warrants require shareholder approval before exercise

Insights

Financial Analyst

This warrant exercise brings significant capital infusion of $4.9 million to Catheter Precision, strengthening their balance sheet. The deal structure includes immediate exercise of existing warrants at $0.70 per share, generating $3.7 million, plus $1.185 million from recent warrant exercises. The company issued new Series K warrants as an incentive, effectively doubling the potential future capital raise with 10.7M additional warrants at the same $0.70 exercise price.

For a micro-cap company with $2.4 million market cap, this financing represents substantial dilution but provides important working capital. The 5.5-year term on new warrants creates long-term financing flexibility, though shareholder approval is required. The reduced warrant exercise price indicates current market challenges but successfully incentivized immediate capital raising.

FORT MILL, SC / ACCESSWIRE / October 25, 2024 / Catheter Precision, Inc. (NYSE American:VTAK), a U.S.-based innovative medical device company, today announced the entry into a definitive agreement for the immediate exercise of certain outstanding Series E, Series F, Series G, Series H and Series I warrants (collectively, the "Existing Warrants") to purchase up to an aggregate of 5,347,981 shares of the Company's stock at a reduced exercise price of $0.70 for total gross proceeds of approximately $3.7 million. An additional $1,185,000 of gross proceeds were received through the exercise of warrants over the last week in accordance with their original terms.

Ladenburg Thalmann & Co. Inc. acted as the exclusive warrant inducement agent for the exercise of the Existing Warrants.

In consideration for the immediate exercise of the Existing Warrants, the Company will issue new unregistered Series K warrants to purchase up to 10,695,962 shares of common stock. The new warrants will have an exercise price of $0.70, will be exercisable only after shareholder approval of their exercise has been obtained, and will have a term of 5.5 years from the date of exercisability.

The issuance and exercise of the Series E, Series F and Series G Warrants was pursuant to an exemption under Section 4(a)(2) of the Securities Act of 1933 (the "Securities Act"), and the resale of the underlying shares has been registered thereunder. The issuance and exercise of the Series H and Series I Warrants have been registered pursuant to a registration statement on Form S-1, and they were issued pursuant to an Underwriting Agreement, dated as of August 30, 2024. The issuance of the Series K Warrants and of the shares underlying them are unregistered, and they are being issued in a private placement pursuant to Section 4(a)(2) of the Securities Act.

Additional information regarding the Catheter Precision warrant repricing will be available in a Form 8-K to be filed with the Securities and Exchange Commission (the "SEC").

About Catheter Precision

Catheter Precision is an innovative U.S.-based medical device company bringing new solutions to market to improve the treatment of cardiac arrhythmias. It is focused on developing groundbreaking technology for electrophysiology procedures by collaborating with physicians and continuously advancing its products.

At the Company
David Jenkins
973-691-2000
IR@catheterprecision.com

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Contact Information

Missiaen Huck
COO
mhuck@catheterprecision.com
9736912000

SOURCE: Catheter Precision

View the original press release on accesswire.com

FAQ

How much did Catheter Precision (VTAK) raise through warrant exercises in October 2024?

Catheter Precision raised $4.9 million in total gross proceeds, with $3.7 million from reduced-price warrant exercises and $1.185 million from regular warrant exercises.

What is the exercise price of the new Series K warrants for VTAK?

The new Series K warrants have an exercise price of $0.70 per share.

How many new Series K warrants did Catheter Precision (VTAK) issue in October 2024?

Catheter Precision issued new Series K warrants to purchase up to 10,695,962 shares of common stock.