This comes from an at-the-market (ATM) facility that saw the company sell 1.07 million shares of RMED stock. These shares were sold for an average price of $7.09 per share, which nets the company $7.4 million following sales commissions.
Ra Medical noted that this sale of shares now has its total outstanding units sitting at 2.16 million. The company also clarified that the offering was adjusted for a reverse stock split that went into effect on Sept. 30.
RMED Stock: What’s Behind the ATM Facility?
Ra Medical is planning to merge with Catheter Precision. However, first it has to meet certain requirements. One such requirement made the company hold the ATM facility in order to meet a net cash merger condition, as well as increase its liquidity.
Will McGuire, CEO of Ra Medical, said the following about the ongoing merger plans:
“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.”
Today’s news brings with it heavy trading of RMED stock. As of this writing, more than 10 million shares have changed hands. To put that in perspective, the company’s daily average trading volume is only about 412,000 shares.
RMED stock is up 25.2% as of Tuesday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.