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SeaStar Medical Holding Corporation Closes Initial $3.3 Million Tranche of $9.8 Million Private Placement
DENVER, March 16, 2023 (GLOBE NEWSWIRE) -- SeaStar Medical Holding Corporation (Nasdaq: ICU) (“SeaStar Medical” or the “Company”), a medical device company
About this update from Seastar Medical Holding Corporation
[{"type":"text","content":"DENVER, March 16, 2023 (GLOBE NEWSWIRE) -- SeaStar Medical Holding Corporation (Nasdaq: ICU) (“SeaStar Medical” or the “Company”), a medical device company developing proprietary solutions to reduce the consequences of hyperinflammation on vital organs, today announced the signing and closing of the initial $3.3 million tranche of a total anticipated $9.8 million private placement with a single institutional investor. The investment is in the form of a Senior Unsecured Original Issue 8.0% Discount Convertible Note (the “Note”), resulting in proceeds before expenses to SeaStar Medical of approximately $3.0 million. The Note has a 15-month maturity. In addition, the Note will be convertible into shares of common stock of the Company at an initial conversion price equal to $2.70, subject to adjustment as further specified in the Note. The Note will be fully repayable in cash upon maturity. In addition, for as long as the Note is outstanding, the institutional investor has the option of prepayment of up to 20% of the issuance amount of a subsequent financing. As part of the investment, the investor was also granted a five-year warrant to purchase an aggregate of 328,352 shares of common stock at an exercise price equal to $2.97, subject to adjustment. Maxim Group LLC acted as the exclusive placement agent for the private placement. SeaStar Medical has agreed to file a registration statement registering for the resale of the shares of common stock issuable upon conversion of the Note and upon exercise of the warrant. Upon the third trading day following the effectiveness of such registration statement, and subject to the satisfaction of certain conditions, the institutional investor will purchase a second note in the principal amount of approximately $2.2 million, less an 8.0% original issuance discount, resulting in proceeds before expenses to SeaStar Medical of approximately $2.0 million. Following the second closing, on a date that is no later than the one year anniversary of the first closing, and subject to the satisfaction of certain conditions, SeaStar Medical has the right to require the institutional investor to purchase a third note in the principal amount of approximately $2.2 million, less an 8.0% original issuance discount, resulting in proceeds before expenses to SeaStar Medical of approximately $2.0 million. Following ...