Catheter Precision, Inc. Announces Closing of Series C-4 Convertible Preferred Stock Offering

Key Highlights from the SEC Form 8-K Filing

• Issuance of Series C-4 Convertible Preferred Stock: On July 30, 2026, Catheter Precision, Inc. (“the Company”) completed the sale and issuance of an aggregate of 2,821 shares of Series C-4 Convertible Preferred Stock, each with a par value of \$0.0001 and a stated value of \$1,000 per share, raising gross proceeds of \$2,821,000.
• Transaction Details: The Series C-4 Preferred Stock was issued upon the exercise of Additional Investment Rights by certain investors under Section 1(e) of the Securities Purchase Agreement dated March 9, 2026.
• Placement Agent: Dawson James Securities, Inc. acted as placement agent and received customary fees and expenses for its services.
• Use of Proceeds: The Company intends to utilize net proceeds for working capital, general corporate purposes, and the redemption of all issued and outstanding Series B Convertible Preferred Stock.
• Regulatory Exemptions: The offering was made under exemptions from Securities Act registration, specifically Section 4(a)(2) and Rule 506(b) of Regulation D.
• Certificate of Designation Filed: On July 27, 2026, the Company filed the Series C-4 Certificate of Designation with the Delaware Secretary of State, setting forth the rights, preferences, and privileges of the Series C-4 Preferred Stock.
• Trading Information: Catheter Precision’s common stock trades under the symbol VTAK on the NYSE American.

Details Investors and Shareholders Must Know

• Senior Ranking and Dilution: The Series C-4 Preferred Stock ranks senior to common stock with respect to dividends and distributions upon liquidation, dissolution, or winding-up. Conversion of Series C-4 into common stock will result in dilution for existing common stockholders.
• Material Modification of Rights: The rights, preferences, privileges, and restrictions of the Series C-4 Preferred Stock are detailed in the Certificate of Designation. Notably, the preferred shares:
  • Have no voting rights except as required by law or as specified in the Certificate of Designation.
  • Cannot be redeemed, purchased, or otherwise acquired by the Company or its subsidiaries while outstanding, nor can dividends be paid on junior securities (including common stock).
  • May be converted into common stock, with conversion price and mechanics detailed in the Certificate.
• Price-Sensitive Implications:
  • Potential Shareholder Dilution: If and when these preferred shares are converted into common stock, existing shareholders may see their ownership percentage decrease.
  • Redemption of Series B Preferred: Proceeds from the offering will be used to redeem Series B Convertible Preferred Stock, which could impact the Company’s capital structure and reduce recurring preferred dividend obligations.
  • Senior Dividend and Liquidation Rights: Series C-4 holders will have priority over common stockholders for dividends and distributions, potentially limiting future payouts to common shareholders.
  • Protective Provisions: The Company cannot amend its charter or pay cash dividends without the consent of Series C-4 holders, adding a layer of protection for preferred investors but potentially restricting corporate flexibility.
• Other Notable Covenants:
  • The Company may not enter into certain transactions (e.g., mergers, sales of material assets, change of control) without the approval of Series C-4 holders.
  • The Company must maintain certain insurance levels and cannot engage in affiliate transactions except on an arm’s-length basis and with approval from disinterested directors.
• Potential Share Price Impact:
  • The issuance and future conversion of Series C-4 Preferred Stock may result in substantial dilution, which can negatively affect the stock price.
  • The prioritization of preferred dividends and liquidation rights may shift investor expectations regarding future distributions.
  • Redemption of Series B Preferred Stock could improve financial flexibility and reduce dilution risk from that class, but overall dilution risk remains.
  • Protective covenants may limit management’s ability to take certain actions without preferred shareholder approval.

Summary Table

What Should Investors Watch For?

• Monitor announcements regarding conversion of Series C-4 Preferred Stock, which could affect share count and price.
• Be aware of potential changes in capital structure and future corporate actions restricted by preferred shareholder covenants.
• Assess the impact of redeeming Series B Preferred Stock on the Company’s balance sheet and earnings.
• Understand that the seniority of Series C-4 holders may affect future dividend and liquidation proceeds for common shareholders.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should consult their own advisors and review official SEC filings for complete information. The information herein is based on SEC Form 8-K and related filings for Catheter Precision, Inc. as of July 2026 and may change without notice.

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