Conavi Medical Corp. Announces Proposed Public Offering of Common Shares and Pre-Funded Warrants

On May 11, 2026, Conavi Medical Corp. announced the filing of a preliminary short-form prospectus in British Columbia, Alberta, and Ontario for a proposed public offering of common shares and/or pre-funded common share purchase warrants. The size, pricing, and number of securities have not yet been determined; they will be negotiated between the company and the agent, Bloom Burton Securities Inc. The offering is expected to close on or about May 28, 2026. The net proceeds are earmarked to complete a limited market release in the United States following the recent FDA 510(k) clearance of its next-generation hybrid IVUS-OCT system, as well as for working capital and general corporate purposes.

• This is not the first dilutive event. Conavi raised $20 million in April 2025, then $12 million in January 2026 (both at $0.45/share) to fund FDA clearance and initial U.S. launch preparations. Now, only four months later, it needs additional capital before any meaningful commercial revenue has materialized.
• The late-May 2026 offering arrives with the stock trading around $0.37, well below the $0.45 of the last raise. A new offering priced at or near current market would be substantially more dilutive and signal that prior capital was insufficient, raising concerns about the durability of the cash runway.
• The company had approximately $1.0 million in cash at December 31, 2025 and, after the $12 million January 2026 offering (net ~$10.3 million after fees), likely burned significant cash through Q1 2026. The imminent need for more funds indicates continued high operating losses and no near-term pathway to self-funding.
• The commercial launch timeline has not changed: a limited U.S. market release is still planned for H2 2026. However, the offering itself underscores the high execution risk and capital intensity of launching a novel medical device in a competitive market. It introduces fresh uncertainty about the company’s ability to reach commercial scale without further substantial dilution.
• The market widely anticipated a capital raise following FDA clearance, so the filing is not a complete surprise. However, the lack of pricing and the depressed share price make this a negative development for existing shareholders.

Conavi Medical Corp. is a commercial-stage medical device company focused on coronary intravascular imaging. Its flagship product, the Novasight Hybrid system, uniquely integrates Intravascular Ultrasound (IVUS) and Optical Coherence Tomography (OCT) into a single catheter and console, allowing cardiologists to evaluate deep vessel structure and high-resolution surface plaque in one pullback. The first-generation system was already cleared in the U.S., Canada, China, and Japan. The next-generation system received U.S. FDA 510(k) clearance on April 20, 2026, enabling a planned U.S. commercial launch starting with a limited release in the second half of 2026. The estimated global market for coronary intravascular imaging exceeds $4 billion annually, with only 30–40% penetration of eligible procedures.