Catheter Precision, Inc. Announces Definitive Agreement to Acquire PeriKard, LLC
FORT MILL, SC / ACCESSWIRE / January 15, 2025 / Catheter Precision, Inc. (NYSE:VTAK), a U.S.-based innovative medical device company focused on electrophysiology products, today announced that it has entered into a definitive agreement to acquire PeriKard, LLC., in a transaction involving the issuance of restricted VTAK common stock for 100% of the LLC interests in PeriKard. A total of 275,000 shares of restricted common stock will be issued upon the closing. The closing of the acquisition is subject to normal closing conditions, including the approval of the NYSE/American of the listing of the shares to be issued. The closing is expected to happen by the end of this month.
PeriKard is a development stage company developing a kit of tools to enable physicians to more easily gain access to the pericardial space of the heart. It is intended that the kit will have both a better needle system and a better drainage system than current alternatives. The pericardium is the thin, fluid filled, sac that surrounds the heart. The pericardium is made up of an outer layer of tissue that holds the heart in place within the chest, protects it from inflammation, and acts as a barrier to infection. It also prevents the heart from stretching out and filling with too much blood which could constrict the heart and impede normal heart function in which case, access to the pericardium is needed to drain the excess fluid. Access is also desirable for ablation for treating arrhythmias outside the heart wall.
David Jenkins, CEO of Catheter Precision, commented on the acquisition, "We are happy to have entered into this all-stock transaction. We are looking forward to continuing product development and gaining the regulatory approvals needed to bring the products to market. The anticipated product offering will complement our emphasis on the ventricular therapeutic market and expectation for continuing growth in this market segment.
About Catheter Precision
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.
Additional Information
This release and all other releases from Catheter Precision, Inc. are limited in their entirety by other information filed with the SEC including, but not limited to, our latest 10-K, 10-Q's, and 8-K's, and should be read in conjunction with those filings.
Forward Looking Statements
This communication contains forward-looking statements. Forward-looking statements can be identified by words such as "believe," "anticipate," "may," "might," "can," "could," "continue," "depends," "expect," "expand," "forecast," "intend," "predict," "plan," "rely," "should," "will," "may," "seek," or the negative of these terms and other similar expressions, although not all forward-looking statements contain these words. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this press release include, but are not limited to, statements regarding the following: that PeriKard's kit of tools is designed to enable physicians to more easily gain access to the pericardial space of the heart and that it is intended that the kit will have both a better needle system and a better drainage system than current alternatives, Catheter's ability to continue development of PeriKard's products and gain the regulatory approvals needed to bring the products to market, that the anticipated PeriKard product offering will complement our emphasis on the ventricular therapeutic market and expectation for continuing growth in this market segment. 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 risks and uncertainties included under the caption "Risk Factors" in the Company's 2023 Form 10-K filed with the SEC, and its Form 10-Q for the quarter ended June 30, 2024, and available at www.sec.gov. These risks and uncertainties include, but aren't limited to, with respect to statements regarding PeriKard, that regulatory approvals may not be obtained, that test results may prove disappointing, and that we may be unable to raise sufficient funding to further the development of PeriKard's products. With respect to Catheter's business, which will include PeriKard following closing of the transaction, and our growth expectations, these risks and uncertainties include that the results of anticipated trials may not turn out as we currently expect and future trials may not occur on the time tables we expect or may be more costly than anticipated, we do not have sufficient liquidity to fund our operations as currently proposed unless we are able to obtain additional financing or enter into a strategic transaction that would provide additional liquidity, we will not be able to reach profitability unless we are able to achieve our product expansion and growth goals, our research and development and commercialization efforts may depend on entering into agreements with corporate collaborators, we have entered into joint marketing agreements with respect to our products, and may enter into additional joint marketing agreements, that will reduce our revenues from product sales, royalty agreements with respect to our LockeT device will reduce any future profits from this product, if we experience significant disruptions in our information technology systems, our business may be adversely affected, litigation and other legal proceedings may adversely affect our business, if we make acquisitions or divestitures, we could encounter difficulties that harm our business, failure to attract and retain sufficient qualified personnel could also impede our growth, failure to maintain effective internal controls could cause our investors to lose confidence in us and adversely affect the market price of our common stock, we have determined that our internal controls and disclosure controls were not effective as of December 31, 2023 and September 30, 2024, and as a result, without effective remediation of the material weaknesses that we have identified, we may not be able to accurately report our financial results or prevent fraud, our revenues may depend on our customers' receipt of adequate reimbursement from private insurers and government sponsored healthcare programs, we may be unable to compete successfully with companies in our highly competitive industry, many of whom have substantially greater resources than we do, our future operating results depend upon our ability to obtain components in sufficient quantities on commercially reasonable terms or according to schedules, prices, quality and volumes that are acceptable to us, and suppliers may fail to deliver components, or we may be unable to manage these components effectively or obtain these components on such terms, if hospitals, physicians and patients do not accept our current and future products or if the market for indications for which any product candidate is approved is smaller than expected, we may be unable to generate significant revenue, if any, our medical device operations are subject to pervasive and continuing FDA regulatory requirements, our products may be subject to additional recalls, revocations or suspensions after receiving FDA or foreign approval or clearance, which could divert managerial and financial resources, harm our reputation, and adversely affect our business, changes in trade policies among the U.S. and other countries, in particular the imposition of new or higher tariffs, could place pressure on our average selling prices as our customers seek to offset the impact of increased tariffs on their own products, increased tariffs or the imposition of other barriers to international trade could have a material adverse effect on our revenues and operating results. The risks and uncertainties described above may be amplified by the COVID-19 pandemic, which has caused significant economic uncertainty, or other pandemics, supply chain disruptions from the Ukraine war or Israeli-Hamas conflict and otherwise, and ongoing volatility in the stock markets and the U.S. economy in general.
The acquisition of PeriKard is subject to closing conditions, including that the NYSE American approve the listing of the restricted common stock to be issued. There is no guarantee that these conditions will be satisfied, in particular that the NYSE American will approve our listing application related to the stock to be issued in the transaction. In that event, the closing of the transaction would be delayed or the acquisition could be terminated.
The forward-looking statements included in this communication are made only as of the date hereof. The Company assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
CONTACTS:
At the Company
David Jenkins
973-691-2000
[email protected]
# # #
Contact Information
Missiaen Huck
COO
[email protected]
9736912000
SOURCE: Catheter Precision, Inc.
View the original press release on accesswire.com