Catheter Precision, Inc. (NYSE American:VTAK), a medical device company specializing in surgical and medical instruments, announced on Thursday that it has finalized the conversion of its Series A Convertible Preferred Stock into common stock. The conversion, which took place on Tuesday, involved issuing 25,000 shares of common stock in exchange for 400 shares of the Series A Preferred.
This transaction marks the final conversion of Series A Preferred stock, leaving no such shares outstanding. The company conducted the conversion under the exemption provided by Section 3(a)(9) of the Securities Act of 1933, which allows for the exchange of securities between an issuer and its current security holders without any commission or remuneration for soliciting the exchange.
The newly issued common stock has been registered for resale on an effective registration statement on Form S-1, ensuring that the shares can be traded by investors. Catheter Precision's move to convert its preferred stock into common stock could potentially increase the liquidity of its shares and simplify its capital structure.
In other recent news, Catheter Precision, Inc. has expanded its stock plan following shareholder approval. Shareholders approved the addition of two million shares to the company's 2023 Equity Incentive Plan, a strategy aimed at incentivizing directors, officers, and key employees. This approval empowers the Compensation Committee of the Board of Directors to grant stock options and other equity-based awards under the expanded plan.
In the same meeting, shareholders re-elected Directors James Caruso and Andrew Arno for three-year terms. An amendment to decrease the company's authorized common stock and another to potentially effect a reverse stock split were also approved. A nonbinding vote on executive compensation and the frequency of such votes passed, with future votes on executive compensation to be held every three years.
In addition, WithumSmith+Brown, PC was ratified as the company’s independent registered public accounting firm. These recent developments indicate a majority participation by the shareholders, as approximately 57.50% of the outstanding shares were represented at the annual meeting.
InvestingPro Insights
As Catheter Precision, Inc. (NYSE American: VTAK) completes the conversion of its Series A Convertible Preferred Stock, investors may find additional insights by examining some key financial metrics and analyst expectations. InvestingPro data highlights a significant revenue growth of 387.78% over the last twelve months as of Q1 2023. This surge is coupled with an impressive gross profit margin of 94.31%, suggesting that the company is highly efficient in converting its revenue into gross profit.
Despite these positive indicators, VTAK currently trades at a low Price / Book multiple of 0.08, which may appeal to value investors looking for potentially undervalued stocks. Additionally, an InvestingPro Tip indicates that analysts anticipate sales growth in the current year, which could signal future potential for the company's financial performance.
Investors considering VTAK may also take note of the company's balance sheet strength, as it holds more cash than debt, according to an InvestingPro Tip. For those interested in a deeper analysis, InvestingPro offers additional tips to guide investment decisions. Using the coupon code PRONEWS24, investors can receive up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing access to a total of 17 InvestingPro Tips for VTAK.
These metrics and insights could be particularly relevant for shareholders and potential investors as they assess the impact of the company's recent corporate action and its future prospects in the medical device industry.
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