Share Dilution

SeaStar Medical raised $4M through a registered direct offering of 5.24 million shares priced at $0.763 each, with five-year warrants exercisable at $0.638. The capital infusion supports commercialization of its FDA-approved pediatric AKI device and adult trials, but triggers 33% equity dilution. Analysts note the structure creates potential stock price pressure, as warrants priced 16% below offering prices might constrain valuations. While addressing immediate liquidity needs, the conventional equity approach suggests urgency in funding operations rather than strategic growth initiatives, with funds allocated vaguely for corporate purposes.