Catheter Precision announces reverse stock split By Investing.com

Catheter Precision, Inc. (NYSE American: VTAK), a company specializing in surgical and medical instruments, has announced a reverse stock split of its common stock at a ratio of 1-for-10, effective July 15, 2024. This corporate action follows approval from the company’s stockholders during the annual meeting held on July 3, 2024.

The reverse stock split will consolidate every ten shares of issued common stock into one share, reducing the number of outstanding shares from approximately 9.01 million to approximately 901,251. The company’s common stock will continue trading under the ticker “VTAK” on the NYSE American but will have a new CUSIP number. Stockholders will not receive fractional shares; instead, they will be compensated with the net proceeds from the sale of aggregated fractional shares after customary deductions.

In conjunction with the reverse stock split, stockholders approved a decrease in the authorized common stock from 300 million shares to 30 million shares, known as the Authorized Share Reduction. Both the reverse stock split and the Authorized Share Reduction are part of a charter amendment filed with the State of Delaware on July 11, 2024.

The reverse stock split is also expected to proportionately adjust the per share exercise prices and the number of shares underlying the company’s outstanding stock options and warrants, as well as the conversion prices and ratios of outstanding preferred stock. The number of shares available for awards under the company’s stock incentive plans will be adjusted accordingly.

This recapitalization move is aimed at increasing the per share trading price of the company’s common stock, which could help meet the continued listing requirements of the NYSE American. The company has several registration statements on file with the SEC, and the reverse stock split will proportionately reduce the amount of undistributed shares covered by these statements.

The information provided here is based on a press release statement filed with the SEC.

In other recent news, Catheter Precision, Inc. has expanded its 2023 Equity Incentive Plan following approval from its shareholders, adding two million shares to the plan. This decision, part of the company’s broader compensation strategy, allows the Compensation Committee of the Board of Directors to grant additional stock options and equity-based awards.

Directors James Caruso and Andrew Arno were re-elected for three-year terms in the same meeting, and a nonbinding vote on executive compensation passed, with future votes to be held every three years. The company also ratified the appointment of WithumSmith+Brown, PC as its independent registered public accounting firm. These are among the recent developments at Catheter Precision, reflecting its commitment to align the interests of its key personnel with those of its shareholders.

InvestingPro Insights

As Catheter Precision, Inc. (VTAK) navigates its recent corporate restructuring with a reverse stock split, investors are closely monitoring the company’s financial health and market performance. According to InvestingPro data, VTAK holds a market capitalization of $3.25 million, reflecting the scale of the company within its sector.

Despite a challenging financial landscape, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at -1.2, the company maintains an impressive gross profit margin of 94.31%, indicating strong profitability on the cost of goods sold. However, it’s crucial to note that the company has experienced a substantial 387.78% revenue growth in the same period, which may signal potential for future expansion.

InvestingPro Tips highlight that VTak holds more cash than debt, a positive sign for financial stability, and analysts anticipate sales growth in the current year. These factors could be particularly relevant for investors considering the company’s strategic moves, such as the reverse stock split. On the flip side, the company is quickly burning through cash, and short-term obligations exceed liquid assets, which could raise concerns about liquidity in the near term. Additionally, analysts do not anticipate the company will be profitable this year, underscoring the importance of strategic planning and execution.

For those seeking a deeper dive into VTAK’s financial outlook, InvestingPro offers additional tips that can be accessed through their platform. With the use of promo code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking valuable insights that could inform investment decisions. There are 9 additional InvestingPro Tips available, providing a comprehensive analysis of VTAK’s financial and market performance.

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