Conavi Medical Corp. Announces Proposed Public Offering of Units

Conavi Medical Corp. (TSXV: CNVI; OTC: CNVIF), a commercial-stage medical device company focused on designing, manufacturing, and marketing imaging technologies to guide common minimally invasive cardiovascular procedures, has announced a proposed public offering of units. The offering is expected to raise funds through the issuance of common shares and common share purchase warrants, which will increase the company's equity and provide additional capital for growth and operations.

The proposed offering is expected to have a positive impact on Conavi Medical's financial health, particularly in terms of its debt-to-equity ratio and cash runway. The offering will dilute existing shareholders but will also increase the company's equity, potentially reducing the debt-to-equity ratio. This will improve the company's financial health by reducing its reliance on debt financing.

In terms of cash runway, Conavi Medical has less than a year of cash runway based on its current free cash flow. The proposed offering will provide additional cash, extending the company's cash runway and providing more time for the company to generate positive cash flow from operations.

To mitigate potential risks associated with the offering, Conavi Medical can take several steps:

1. Use the proceeds from the offering to reduce debt: By using the funds raised from the offering to pay down debt, Conavi Medical can reduce its interest expenses and improve its cash flow.
2. Diversify funding sources: Conavi Medical can explore other funding sources, such as grants, partnerships, or non-dilutive financing, to reduce its reliance on equity financing and maintain a healthy balance sheet.
3. Monitor and manage expenses: Conavi Medical can closely monitor and manage its expenses to ensure that it is operating efficiently and effectively. This can help the company generate positive cash flow and improve its cash runway.
4. Maintain a strong balance sheet: Conavi Medical can maintain a strong balance sheet by managing its debt levels, maintaining adequate cash reserves, and ensuring that its equity is sufficient to support its operations and growth.

In conclusion, the proposed offering by Conavi Medical is expected to have a positive impact on the company's financial health, particularly in terms of its debt-to-equity ratio and cash runway. By taking steps to mitigate potential risks, such as reducing debt, diversifying funding sources, monitoring expenses, and maintaining a strong balance sheet, Conavi Medical can improve its financial health and position itself for long-term success.