SeaStar Medical secures $6 million in direct offering

DENVER - SeaStar Medical (TASE:PMCN) Holding Corporation (NASDAQ:ICU), a micro-cap company with a market capitalization of $7.72 million, has entered into a securities purchase agreement with an institutional investor to sell over 3.5 million shares, including pre-funded warrants, in a registered direct offering, alongside a concurrent private placement of warrants to purchase additional shares. The transaction is set to close on February 3, 2025, with expected gross proceeds of approximately $6 million. According to InvestingPro data, while the company maintains more cash than debt on its balance sheet, its current ratio of 0.54 indicates potential liquidity challenges.

The offering price for each share or pre-funded warrant, which allows purchase at $0.001 per share, is $1.70, with the accompanying warrants exercisable at the same price upon shareholder approval and valid for five years thereafter. The pricing comes amid significant market volatility for the stock, which has shown a beta of -1.03, indicating it typically moves in the opposite direction of the broader market. SeaStar Medical intends to allocate the net proceeds for general corporate purposes, such as working capital and capital expenditures. Discover more market insights and 10+ additional ProTips with InvestingPro.

H.C. Wainwright & Co. is serving as the exclusive financial advisor for this transaction. The offering relies on a shelf registration statement filed with the Securities and Exchange Commission on December 8, 2023, and declared effective on December 22, 2023. The securities are available through a prospectus, part of the registration statement, accessible on the SEC’s website.

The private placement warrants and the shares they may convert into have not been registered under federal or state securities laws, being offered under exemptions provided by these laws.

SeaStar Medical is a therapeutic medical technology company engaged in developing extracorporeal therapies aimed at reducing the impact of excessive inflammation on organs. The company is focusing on therapies that target cells responsible for systemic inflammation. As a niche player in the medical technology sector, the company faces development challenges, reflected in its lack of profitability over the last twelve months. Get comprehensive financial analysis and valuation metrics with InvestingPro, including detailed health scores and growth potential indicators.

This news is based on a press release statement and contains forward-looking statements regarding the offering’s completion and the intended use of proceeds. These statements are subject to risks and uncertainties that could cause actual results to differ from expectations.

In other recent news, SeaStar Medical reported key developments in its financial and operational landscape. The medical device company has been notified by Nasdaq about a potential delisting due to its market value falling below the required threshold. SeaStar Medical intends to appeal this decision, aiming to maintain its listing on the exchange.

The company’s shareholders approved a reduction in the number of authorized shares from 500 million to 450 million. SeaStar Medical also received a Breakthrough Device Designation from the U.S. Food and Drug Administration for its Selective Cytopheretic Device, a significant milestone in its endeavors to treat chronic systemic inflammation in patients requiring chronic hemodialysis.

Additionally, SeaStar Medical settled a dispute with Nuwellis over a distribution agreement for its pediatric SCD product, agreeing to pay Nuwellis $900,000 by December 31, 2024. The company also reported the full retirement of its long-term debt, previously over $9 million, and announced a $10 million stock and warrant sale. However, it is facing a shareholder class action lawsuit alleging material misstatements and omitted information about its business operations and regulatory approvals. Lastly, SeaStar Medical has seen significant board changes with the appointment of Jennifer A. Baird, Bernadette N. Vincent, and John Neuman. These are the recent developments at SeaStar Medical.

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