Catheter Precision, Inc. Announces Pricing of $3.1 Million Underwritten Public Offering

Rhea-AI Summary

Catheter Precision (NYSE American: VTAK) has announced the pricing of a $3.1 million underwritten public offering of common stock units and pre-funded units. The offering includes 347,277 common stock units at $1.00 per unit and 2,773,000 pre-funded warrant units at $0.9999 per unit. Each unit consists of one share of common stock (or a pre-funded warrant), and three warrants (Series H, I, and J) with varying expiration dates. Ladenburg Thalmann & Co. Inc. is acting as the sole book-running manager. The company has granted a 45-day over-allotment option to the underwriter. The offering is expected to close around September 3, 2024, subject to customary conditions.

Positive

• Raised approximately $3.1 million in gross proceeds
• Offering includes both common stock units and pre-funded warrant units, providing flexibility for investors
• Warrants have fixed pricing, avoiding potential future dilution from variable pricing features
• 45-day over-allotment option granted, potentially increasing the offering size

Negative

• Potential dilution for existing shareholders due to the issuance of new shares and warrants
• The offering price of $1.00 per unit may be at a discount to the current market price, potentially impacting stock value
• Additional shares from warrant exercises could further dilute shareholders in the future

Insights

Financial Analyst

Catheter Precision's $3.1 million public offering is a double-edged sword for investors. While it provides necessary capital, it comes at the cost of significant dilution. The offering price of $1.00 per unit is notably low, indicating potential financial stress. The complex structure, including multiple warrant series, suggests a desperate attempt to attract investors.

The over-allotment option could further dilute existing shareholders by up to 15%. The immediate separability of units and pre-funded units may lead to increased volatility. Investors should closely monitor the company's ability to utilize this capital effectively for growth and operational improvements.

Medical Device Industry Expert

This capital raise is important for Catheter Precision's survival in the competitive medical device market. However, the modest sum of $3.1 million may not be sufficient for significant R&D or market expansion. The company needs to demonstrate clear value proposition and market differentiation to justify investor confidence.

The multi-tiered warrant structure could be a strategic move to maintain investor interest over different time horizons. It's essential to track how the company allocates these funds to drive innovation and market penetration in the catheter technology space. Success will hinge on rapid product development and regulatory approvals.

Market Research Analyst

The pricing of this offering at $1.00 per unit signals weak market sentiment towards Catheter Precision. The inclusion of multiple warrants suggests a struggle to attract investors without additional incentives. This could indicate underlying concerns about the company's growth prospects or financial health.

The timing of the offering, closing just before a holiday weekend, might be an attempt to minimize immediate market reaction. Investors should watch for post-offering stock performance and any strategic announcements regarding fund utilization. The company's ability to leverage this capital for tangible growth will be critical in restoring investor confidence and potentially improving its market position.

FORT MILL, SC / ACCESSWIRE / August 30, 2024 / Catheter Precision, Inc. (NYSE American:VTAK), a U.S.-based innovative medical device company, today announced the pricing of its underwritten public offering of common stock units and pre-funded units for aggregate gross proceeds of approximately $3.1 million prior to deducting underwriting discounts and commissions and offering expenses.

The equity offering is comprised of 347,277 common stock units, priced at a public offering price of $1.00 per unit, and 2,773,000 pre-funded warrant units, priced at a public offering price of $0.9999 per unit. Each common stock unit and pre-funded warrant unit consists of one share of common stock (or, in lieu of common stock, a pre-funded warrant to purchase one share of common stock at an exercise price of $0.0001), one warrant to purchase one share of common stock that expires on the six month anniversary of the date of issuance (a "Series H Warrant"), one warrant to purchase one share of common stock that expires on the eighteen month anniversary of the date of issuance (a "Series I Warrant"), and one warrant to purchase one share of common stock that expires on the five year anniversary of the date of issuance (a "Series J Warrant"). The exercise price for each of the Series H Warrant, Series I Warrant and Series J warrant is $1.00 per share. The warrants to be issued in this transaction are fixed priced and do not contain any variable pricing features. The securities comprising the units and pre-funded units are immediately separable and will be issued separately.

Ladenburg Thalmann & Co. Inc. is acting as sole book-running manager.

In addition, the Company has granted the underwriter a 45-day option to purchase additional shares of common stock and/or common warrants, representing up to 15% of the number of securities sold in the offering, solely to cover over-allotments, if any.

The closing of the offering is expected to take place on or about September 3, 2024, subject to the satisfaction or waiver of customary closing conditions.

The securities described above are being offered pursuant to registration statements on Form S-1 (File Nos. 333-279930 and 333-281849), which were declared effective by the United States Securities and Exchange Commission ("SEC") on August 29,2024 and August 30, 2024. The offering is being made solely by means of a prospectus. A preliminary prospectus relating to the proposed offering was filed with the SEC on August 27, 2024, and is available on the SEC's website located at http://www.sec.gov. A final prospectus relating to this offering will be filed by Catheter Precision with the SEC. When available, copies of the final prospectus can be obtained at the SEC's website at http://www.sec.gov or from Ladenburg Thalmann & Co. Inc., Electronic copies of the final prospectus relating to the offering may be obtained, when available, from Ladenburg Thalmann & Co. Inc., 640 Fifth Avenue, 4th Floor, New York, New York 10019, or by telephone at (212) 409-2000, or by email at prospectus@ladenburg.com. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

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.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding Catheter Precision's expectations with respect to the completion of the public offering and the anticipated proceeds from the offering. Risks and uncertainties related to these endeavors include, but are not limited to, risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions related to the public offering.

Forward-looking statements are based on management's current expectations and are subject to various risks and uncertainties that could cause actual results to differ materially and adversely from those expressed or implied by such forward-looking statements. Accordingly, these forward-looking statements do not constitute guarantees of future performance, and you are cautioned not to place undue reliance on these forward-looking statements.

These and other risks regarding Catheter Precision's business are described in detail in the registration statement relating to the public offering and Catheter Precision's other SEC filings. These forward-looking statements speak only as of the date hereof, and we disclaim any obligation to update these statements except as may be required by law.

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

Contact Information

Missiaen Huck
COO
mhuck@catheterprecision.com
9736912000

SOURCE: Catheter Precision

View the original press release on accesswire.com

FAQ

What is the size of Catheter Precision's (VTAK) public offering announced on August 30, 2024?

Catheter Precision (VTAK) announced a $3.1 million underwritten public offering of common stock units and pre-funded units on August 30, 2024.

What is the pricing structure of VTAK's public offering?

The offering includes 347,277 common stock units priced at $1.00 per unit and 2,773,000 pre-funded warrant units priced at $0.9999 per unit.

When is the expected closing date for Catheter Precision's (VTAK) public offering?

The closing of the offering is expected to take place on or about September 3, 2024, subject to customary closing conditions.

What types of warrants are included in VTAK's offering units?

Each unit includes three warrants: Series H (6-month expiry), Series I (18-month expiry), and Series J (5-year expiry), all with an exercise price of $1.00 per share.