Ra Medical Systems Announces Reverse Merger; Combined Company To Focus On Cardiac Arrhythmias

Benzinga ยท 2022-09-12 08:53
  • Ra Medical Systems Inc (NYSE:RMED) has agreed to merge with privately held Catheter Precision Inc, a medical device and technology company focused on cardiac electrophysiology. 
  • Under the terms of the agreement, Catheter Precision will become a wholly owned subsidiary of Ra Medical in a stock-for-stock reverse merger transaction.
  • If completed, the merger will result in a combined publicly traded company that will focus on the cardiac electrophysiology market.
  • CEO of Catheter Precision will act as Chief Executive Officer of the combined company. 
  • Catheter Precision has three product areas that it intends to pursue. 
  • Its lead product, 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.
  • It also intends to pursue a second generation of Amigo, a robotic arm previously cleared by both FDA and CE. It is a catheter control device that can be remotely controlled outside the procedure room. 
  • Catheter Precision is working toward a third product release in the first half of 2023, which is a vessel closure device that would assist in the closure of the insertion site of the percutaneous catheter or other device used within the body. 
  • After the merger, Catheter Precision stakeholders are expected to own approximately 80% of the combined company. Pre-merger Ra Medical equity holders are expected to own approximately 20% of the combined company.
  • Price Action: RMED shares are up 41.5% at $0.2060 during the premarket session on the last check Monday.