Conavi Medical (TSXV: CNVI) launches public offering to fund Novasight Hybrid U.S. rollout

Conavi Medical Corporation (TSXV: CNVI), a cardiovascular imaging company headquartered in Toronto, has announced a proposed public offering of common shares and pre-funded warrants aimed at supporting the regulatory clearance and commercial rollout of its next-generation Novasight Hybrid imaging system in the United States. The company filed a preliminary short-form prospectus on November 21, 2025, with securities regulators in British Columbia, Alberta and Ontario, detailing plans to raise fresh capital through an agency agreement with Bloom Burton Securities Inc.

The financing marks a pivotal inflection point in Conavi Medical Corporation’s strategic roadmap, as the company seeks to transition from first-generation device commercialization to broader U.S. market penetration. The proceeds from the offering are expected to fund the submission of a 510(k) application to the U.S. Food and Drug Administration for the upgraded Novasight Hybrid system, facilitate a limited market release, and prepare the company for a broader commercial launch across U.S. healthcare institutions. Additional proceeds will be allocated to working capital and general corporate expenses.

The offering will be conducted on a commercially reasonable efforts basis, with the final number of common shares or pre-funded warrants, along with pricing, to be determined in the context of market conditions. Subject to regulatory and exchange approvals, including from the TSX Venture Exchange, the offering is expected to close on or around December 12, 2025.

Why is Conavi Medical aligning its capital raise with the next-generation Novasight Hybrid launch?

Conavi Medical Corporation already holds regulatory clearance in the United States, Canada, China and Japan for its current generation Novasight Hybrid system, a dual-modality imaging device that integrates intravascular ultrasound (IVUS) and optical coherence tomography (OCT) into a single catheter platform. The system enables real-time, co-registered imaging of coronary arteries, improving precision during interventional procedures such as percutaneous coronary interventions.

However, the upgraded Novasight Hybrid system represents a critical leap in functionality and commercial potential. The upcoming version is positioned to offer enhanced imaging quality, improved user experience, and potentially better integration into cath-lab workflows. To capitalize on this opportunity, Conavi Medical Corporation is using the public offering to secure funds specifically tied to its regulatory and commercial execution plan in the United States.

Analysts tracking med-tech capital markets suggest that aligning a financing event with regulatory and launch milestones is generally viewed positively, as it ties dilution directly to forward-looking value creation. In this case, the company appears to be structuring the raise not to extend runway, but to power a transformative go-to-market push.

What makes pre-funded warrants a strategic element in the offering structure?

Conavi Medical Corporation’s offering includes both common shares and pre-funded warrants. Pre-funded warrants are a financing instrument that gives investors the right to purchase common shares at a nominal exercise price, typically near zero, but they are issued in lieu of common shares upfront. This structure can be advantageous for institutional investors seeking exposure to upside without immediately triggering dilution thresholds or public float limitations.

For the issuing company, pre-funded warrants help raise capital while mitigating short-term share count inflation. Conavi Medical Corporation appears to be using this hybrid model to appeal to a broader range of investors while also managing potential dilution impacts for existing shareholders. In recent med-tech financings, this mechanism has gained popularity among development-stage companies looking to fund regulatory or commercialization milestones.

The final allocation between common shares and pre-funded warrants, as well as the pricing, will be determined in coordination with Bloom Burton Securities Inc. at the time of pricing. This flexibility allows Conavi Medical Corporation to adapt the structure based on investor demand and prevailing market conditions.

How does this raise position Conavi Medical against competitors in intravascular imaging?

The cardiovascular imaging segment is highly competitive, with both legacy device makers and newer entrants racing to gain share in the hospital and outpatient markets. Companies with IVUS and OCT capabilities are increasingly trying to differentiate on image clarity, procedural speed, device integration and ease of interpretation.

Conavi Medical Corporation’s Novasight Hybrid system, with its simultaneous IVUS and OCT imaging, targets cardiologists who value workflow efficiency and high-resolution insights during interventions. Dual-modality systems are especially appealing in complex cases such as calcified lesions, bifurcations, and high-risk stent placements, where the need for precise anatomical assessment is acute.

By earmarking the offering proceeds for U.S. FDA 510(k) submission and the commercial deployment of the next-generation Novasight Hybrid system, the company is preparing to enter a critical phase of validation. Industry experts point out that while regulatory clearance is essential, success in this category also hinges on reimbursement access, sales channel partnerships, physician training and clinical evidence generation.

Conavi Medical Corporation’s decision to focus the raise on these aspects sends a signal to the market that it is not merely pursuing regulatory compliance, but rather aiming to execute a coordinated commercial strategy. This sets it apart from development-stage peers who often raise funds without clear operational timelines.

What are the potential risks and investor considerations tied to the offering?

From an investor standpoint, the offering introduces both opportunity and risk. On one hand, the ability to fund a major product launch into the U.S. healthcare system could create significant revenue potential if the device gains traction. On the other hand, the lack of fixed pricing and the unspecified number of securities introduces uncertainty about dilution levels and future share performance.

Additionally, while the Novasight Hybrid system is already cleared in multiple jurisdictions, commercial adoption requires far more than regulatory approval. Key factors that investors will be monitoring include physician feedback, initial order volumes from pilot centers, progress on Centers for Medicare & Medicaid Services reimbursement coding, and signs of competitive responses from larger imaging players.

Another dimension is Conavi Medical Corporation’s historical cash flow. The company has reported negative free cash flow over the past twelve months, a pattern common to emerging med-tech firms undergoing product development and market expansion. This raises the stakes for the offering, as delays in execution or slower-than-expected market uptake could prompt additional funding needs or trigger cost controls.

Industry observers believe that the upcoming pricing of the securities, coupled with how efficiently Conavi Medical Corporation deploys capital post-raise, will determine whether the market views this offering as accretive or dilutive over the medium term.

What does this mean for Conavi Medical Corporation’s long-term strategy?

If successfully executed, this offering could represent the beginning of a new phase for Conavi Medical Corporation. Moving from a cleared but nascent product into a scaled U.S. rollout requires not only capital but operational maturity. The firm’s ability to translate technological advantage into commercial momentum will shape its standing in the cardiovascular imaging landscape over the next several years.

Market analysts expect the intravascular imaging segment to grow steadily, driven by the rising incidence of coronary artery disease, broader adoption of image-guided interventions, and increasing pressure on hospitals to reduce adverse events. If Conavi Medical Corporation can prove that its dual-modality system materially improves outcomes or reduces time per procedure, it could secure a durable niche within a fragmented market.

The timing of the offering—just as the next-generation Novasight Hybrid system approaches FDA submission—suggests that Conavi Medical Corporation is betting on a narrow execution window to build credibility and market presence. Whether this strategic gamble pays off will depend on speed, partnerships and clinical validation.

What are the key takeaways from Conavi Medical’s public share and warrant offering?

• Conavi Medical Corporation (TSXV: CNVI) has filed a preliminary prospectus for a public offering of common shares and pre-funded warrants in select Canadian provinces, with Bloom Burton Securities Inc. acting as the agent.

• The capital raise is strategically timed to support the FDA 510(k) submission, limited release, and broader U.S. commercial launch of the next-generation Novasight Hybrid intravascular imaging system.

• The Novasight Hybrid system offers simultaneous IVUS and OCT imaging through a single catheter, targeting efficiency and precision in coronary artery procedures.

• The offering is structured to include pre-funded warrants, providing a flexible financing tool for investors while managing near-term dilution risk.

• Proceeds will also be used for working capital and general corporate purposes, aligning funding directly with operational execution milestones.

• Final pricing, size, and allocation between common shares and warrants will be determined based on market conditions at the time of the offering.

• Analysts believe the offering demonstrates financial discipline by aligning capital raising with a clear go-to-market roadmap and product validation plan.

• Commercial success will depend on physician adoption, reimbursement traction, and competitive differentiation against larger med-tech firms.

• Investors are expected to monitor offering terms, progress on FDA submission, early market uptake, and Conavi Medical Corporation’s cash deployment efficiency.

• The offering marks a potential turning point for the company as it shifts from a cleared technology base to aggressive commercial expansion in the U.S. med-tech market.