Ra Medical Systems Announces Closing of $8 Million Private Placement

FT. MILL, SC / ACCESSWIRE / March 27, 2023 / Ra Medical Systems, Inc. (NYSE American:RMED) today announces that it has closed its previously announced private placement, which generated $8 million in gross proceeds.

David Jenkins, Executive Chairman of RMED, commented, "We are extremely pleased to have concluded this offering in a very difficult market for small public companies. This cash, based on our current forecasts and together with our current cash on hand, will provide us with sufficient operating capital through the end of calendar year 2024, and allows for a strong market launch of both our VIVO product line and also our new LockeT suture retention/closure devices."

Ladenburg Thalmann & Co. Inc. acted as the exclusive placement agent for the offering.

The Company issued Class A units consisting of one common share, one Series F and one Series G warrant at a purchase price of $1.60 per unit. In lieu of Class A units, for beneficial ownership purposes, the Company issued Class B units consisting of convertible preferred stock convertible into approximately 625 shares of common stock shares per share of preferred, one Series F and one Series G warrant. A total of 497,908 shares of common stock, 7,203 convertible preferred shares convertible into 4,501,060 common shares, 4,999,093 Series F and 4,999,093 Series G warrants were issued in the private placement. The Series F, exercisable for two years, and Series G warrants, exercisable for six years, have a fixed exercise price of $3.00 per warrant. The securities issued in the private placement contain no price reset or anti-dilution features.

The securities offered in the private placement and described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the "Act"), and/or Rule 506(b) of Regulation D promulgated thereunder and have not been registered under the Act or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the "SEC") or an applicable exemption from such registration requirements.

The Company has agreed to file a registration statement with the SEC covering the resale of the shares of the common stock and the shares of common stock underlying the preferred stock and warrants in the private placement no later than five business days following the closing of the offering.

About VIVO

Catheter Precision's VIVO™ (View Into Ventricular Onset), is a non-invasive 3D imaging system that enables physicians to identify the origin of ventricular arrhythmias pre-procedure, thereby streamlining workflow and reducing procedure time. VIVO has received marketing clearance from the U.S. FDA and has the CE mark.

About LockeT

Catheter Precision's LockeT is a suture retention device that aids in wound healing and hemostasis after percutaneous procedures.

About Ra Medical Systems

Ra Medical, and its wholly owned subsidiary 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.

Cautionary Note Regarding Forward-Looking Statements

This communication contains forward-looking statements which include, but are not limited to, the plans and expectations of the combined company regarding its cash needs and liquidity. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. The Company's expectations and beliefs regarding these matters may not materialize. Actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of uncertainties, risks and changes in circumstances, including but not limited to market risks, risks regarding acceptance and sale of the Company's products, and regulatory risks. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption "Risk Factors" and elsewhere in the Company's filings with the SEC, including the Company's Preliminary Proxy Statement filed on September 23, 2022, Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, the Current Reports on Form 8-K, including the Current Report on Form 8-K filed on September 12, 2022, and any prior or subsequent reports on Form 10-K, Form 10-Q or Form 8-K filed with the SEC from time to time and available at www.sec.gov. Important business and financial information about Catheter Precision's business and the related discussion and analysis of financial condition and results of operations of Catheter Precision is set forth in the Current Report on Form 8-K filed on September 12, 2022 and the exhibits thereto and should be read in conjunction with the Catheter Precision Financial Statements and the pro forma financial statements for the combined company that are attached as exhibits thereto. Risks and uncertainties related to Catheter Precision and the projections and estimates described above that may cause actual results to differ materially from those expressed or implied in any forward-looking statement are included in "Risk Factors - Risk Related to the Merger with Catheter Precision and - Risks Related to Our Evaluation of Strategic Alternatives for our Legacy Assets," and "Risk Factors - Risks Related to the Business of Catheter Precision," which are filed as the exhibits to the Current Report on Form 8-K filed on September 12, 2022. These documents can be accessed on the Company's Investor Relations page at https://ir.ramed.com/ by clicking on the link titled "SEC Filings." The risks and uncertainties may be amplified by the COVID-19 pandemic, which has caused significant economic uncertainty, and ongoing volatility in the stock markets and the U.S. economy in general. The extent to which the COVID-19 pandemic impacts the Company's and Catheter Precision's businesses, operations, and financial results, including the duration and magnitude of such effects, will depend on numerous factors, which are unpredictable, including, but not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume.

The forward-looking statements included in this communication are made only as of the date hereof. The Company and Catheter Precision assume no obligation and do not intend to update these forward-looking statements, except as required by law.

CONTACTS:

At the Company
David Jenkins
973-691-2000

SOURCE: Ra Medical Systems, Inc.