Catheter Precision Boosts Funding with $1.5 Million Placement
Catheter Precision Secures $1.5 Million in Equity Financing
In an encouraging move for its growth, Catheter Precision, a U.S.-based medical device company devoted to cardiac electrophysiology innovations, has announced a significant $1.5 million in private placement equity financing. The financing comes through security purchase agreements with institutional investors, marking a pivotal step toward bolstering its financial foundation and expanding into new markets.
Strategic Growth Opportunities
David Jenkins, the CEO of Catheter Precision, expressed optimism about the recent transactions. He stated that this infusion of capital would not only support the company’s operational needs but also present opportunities to collaborate with other firms. This collaboration could lead to enhanced product offerings targeting both general cardiology and cardiac electrophysiology. The ability to evolve their existing product lines signals a commitment to improving patient care in these areas.
Details of the Financing Agreement
The details of the funding transaction indicate that Catheter Precision sold 1,500 shares of its Series B Preferred Stock to institutional investors in exchange for $1.5 million. This Preferred Stock can be converted into a total of 4,287,000 common shares of Catheter Precision, with each share of preferred stock convertible into 2,858 shares of common stock. In addition, the company issued 4,285,716 Warrants for the purchase of common stock at an exercise price of $0.50 per share. Investors will find these terms quite appealing, especially with the Warrants providing a strategic path for potential future gains.
Conditions of the Warrants
The Warrants included in this transaction are available for exercise under specific conditions. Notably, should the common stock trade at $1.50 or more over a contiguous twenty-day period and while an effective registration statement is in place, the Warrants can be called. Moreover, these Warrants carry a five-and-a-half-year term following the needed stockholder approval.
Acquisition of Promissory Notes
Beyond the equity financing, Catheter Precision is leveraging its position to acquire certain promissory notes from QHSLab, Inc. In this context, the company issued an additional 1,500 shares of Series B Preferred Stock, which similarly can convert into 4,287,000 shares of common stock. This acquisition intends to consolidate the financial obligations owed by QHSLab, which currently operates within diverse medical domains, including mental health and cardiac care.
Understanding QHSLab's Offerings
QHSLab's wide array of products supports healthcare professionals in diagnosing various health conditions, which complements Catheter Precision's expertise in electrophysiology. However, it's noted that there’s uncertainty surrounding the notes' valuation since they are currently in default and accruing high-interest rates. Catheter Precision's initiative to tap into these notes emphasizes the potential for a strategic partnership aimed at enhancing medical offerings in the cardiovascular marketplace.
Future Vision and Innovations
Catheter Precision prides itself on being at the forefront of cardiac arrhythmia treatment technology. According to the company, a focus on innovative devices and solutions is paramount for improving patient outcomes in electrophysiology procedures. Continuous collaboration with physicians ensures that their products evolve in line with healthcare needs, positioning them strongly against competitive entities in the medical device field.
CEO’s Forward-Looking Perspective
In light of these developments, CEO David Jenkins emphasizes the strategic importance of partnerships and the commitment to expanding their direct sales capabilities. As the field of cardiac care evolves, having robust resources will be essential for sustaining growth in both existing and new markets.
Frequently Asked Questions
What is the significance of the $1.5 million funding for Catheter Precision?
The $1.5 million funding provides essential financial resources for operational growth and potential collaboration with other medical companies in the cardiology space.
What does the Series B Preferred Stock include?
Each share of Series B Preferred Stock can be converted into 2,858 shares of common stock, offering investors potential gains as the company grows.
How does the partnership with QHSLab benefit Catheter Precision?
The partnership is expected to enhance product offerings in cardiovascular health, leveraging QHSLab's diagnostic solutions alongside Catheter Precision's electrophysiology innovations.
What challenges does Catheter Precision face regarding the notes from QHSLab?
The notes are currently in default and accruing high-interest rates, introducing uncertainty in their valuation and payment reliability.
What is Catheter Precision's mission?
The company aims to develop innovative medical devices to improve the treatment of cardiac arrhythmias by collaborating with healthcare professionals to meet evolving needs.
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