Ra Medical Systems Raises $7.6 Million Through Completed At-The-Market Facility
October 17 2022 - 04:05PM
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Ra Medical Systems, Inc. (NYSE American: RMED) (“Ra Medical” or the “Company”) announces the completion of its at-the-market (ATM) facility, raising gross proceeds of $7.6 million. The Company sold 1,072,246 shares of common stock at a weighted average price of $7.09 per share, as adjusted for a reverse split effected September 30, 2022, resulting in net proceeds of approximately $7.4 million after deducting sales commissions.
As of October 10, 2022, the Company had 2,161,429 shares of common stock outstanding. Ladenburg Thalmann & Co. Inc. served as the sales agent for the ATM.
“Proceeds from this offering help us meet the conditions of the proposed merger with Catheter Precision, and are another step toward bringing our shareholders the value of their groundbreaking electrophysiology technology to improve the treatment of cardiac arrhythmias,” said Will McGuire, Ra Medical CEO. “We are currently evaluating the next step in our plan to raise sufficient funds to satisfy the net cash merger condition and other liquidity needs, and we plan to file a definitive proxy for a Special Meeting of Stockholders to vote on the proposed merger as soon as we have cleared the Securities and Exchange Commission (“SEC”) comment process. Assuming the merger proposal passes in the anticipated timeframe and the other conditions under the merger agreement are satisfied, we continue to expect the transaction will be completed by the end of 2022.”
The shares in the ATM offering were sold pursuant to a shelf registration statement declared effective by the SEC on February 3, 2021 and a prospectus supplement filed with the SEC on September 2, 2022.
About Ra Medical Systems
Ra Medical Systems, Inc. is a medical device company that owns intellectual property related to an advanced excimer laser-based platform for use in the treatment of vascular immune-mediated inflammatory diseases. Its excimer laser and single-use catheter system, together referred to as the DABRA Excimer Laser System, is used as a tool in the treatment of peripheral artery disease.
Proposed Merger Agreement
On September 12, 2022, Ra Medical announced entering into an Agreement and Plan of Merger (the “Merger Agreement”) with privately held Catheter Precision, Inc., a medical device and technology company focused in the field of cardiac electrophysiology. Under the terms of the Merger Agreement, Catheter Precision will become a wholly owned subsidiary of Ra Medical in a stock-for-stock reverse merger transaction (the “Merger”). If completed, the Merger will result in a combined publicly traded company that will focus on the cardiac electrophysiology market, one of the most robust and growing areas of medical devices.
Catheter Precision has three product areas that it intends to pursue. Its lead product, named VIVO™ (an acronym for View Into Ventricular Onset), is an FDA-cleared and CE mark product that utilizes non-invasive inputs to locate the origin of ventricular arrhythmias, and, through its use, the physician can identify patients for invasive catheter ablation, and with those patients, reduce the amount of time in the invasive procedure. Ventricular arrhythmias include ventricular
