Why Are Ra Medical Shares Plunging to 52-Week Low?

Ra Medical Systems Inc RMED has priced an underwritten public offering of 9.535 million units at $0.50 per unit for approximately $12.0 million in gross proceeds.

• Each unit consists of one common share, one Series A warrant to purchase one share at an exercise price of $0.50, and one Series B warrant to purchase one share at an exercise price of $0.50 per share.
• The offering also includes 14.47 million pre-funded units, priced at $0.4999 per unit. 
• Related: Ra Medical To Focus On Peripheral Artery Disease With Pharos Dermatology Divestiture.
• The offering will close by February 8
• The Company will use the proceeds for general corporate purposes, including working capital, atherectomy indication trial, and engineering efforts.
• Price Action: RMED shares are trading 52.7% lower at $0.33 during the market session on the last check Friday.