Ra Medical Systems, Inc. (NYSE:RMED)
In pre-market trading on Monday, the announcement of a merger agreement between Ra Medical Systems, Inc. (NYSE:RMED), a medical technology company, and Catheter Precision, a medical device developer specializing in cardiac electrophysiology procedures, caused the shares of Ra Medical Systems, Inc. to increase by approximately 37%.
Catheter Precision will complete stock for a stock reverse merger with Ra Medical Systems, Inc. (NYSE:RMED) in accordance with the terms of the agreement, at which point it will become a subsidiary of Ra Medical Systems, Inc. (NYSE:RMED). On a fully diluted basis, it is anticipated that the Catheter Precision stakeholders will hold approximately 80% of the ownership of the combined company, while Ra Medical Systems, Inc. (NYSE:RMED) investors will hold the remaining 20%.
The deal has been accepted by the boards of directors of both companies, and it is expected to be finalized before the end of the year, subject to the satisfaction of certain requirements, one of which is the consent of the shareholders of both companies.
The newly formed company will have David Jenkins, an experienced leader in the establishment of new medical businesses, serving as its chief executive officer. Mr. Jenkins was instrumental in the management of the medical company Transneuronix, Inc., which was bought by Medtronic (MDT) in July of 2005.
The product pipeline of Catheter Precision, which is based in the United States, comprises a vessel closure device that is expected to be on sale in the first half of 2023.
The conditions of the non-binding contractual agreement that the two corporations agreed upon in June have been incorporated into today’s deal.
Ra Medical Systems (NYSE:RMED) released a press release announcing an EPS of -$0.26 according to GAAP for the second quarter.
As of the 30th of June 2022, Ra Medical Systems, Inc. (NYSE:RMED) reported that it has cash and cash equivalents totaling $11.1 million.
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