Sam Boughedda

Investing.com — Shares of Acutus Medical Inc (NASDAQ:) fell more than 12.5% Friday after a downgrade by investment research firm Canaccord.

Analysts from the firm reduced the stock price to buy and set a $3 price target, which is above the $2.64 current level.

Canaccord stated in a research note that they were downgrading Acutus due to financing and dilution risks. He cited conversations with top executives from both private and public companies involved in Med-Tech. 

Canaccord stated that “management teams pointed out the difficult macro environment in Q4/21, and into 2022” over the last few days.

“We believe the majority of companies with strong capital can weather the storm. We believe AFIB’s sole focus on commercial matters will make it difficult for them to survive.

Acutus shares fell almost 89% over the last 12 months from $34 highs. After it failed to meet revenue projections, the arrhythmia company saw its stock drop by more than 45%. 

Based on its $145 million cash balance at the end the third quarter and $40 million long-term debt as well as its quarterly burn rate of 25 million to 30 million, the analysts estimated the company might be negative net cash in the second half.Canaccord stated, “We think that in order to fund operations at present levels, there could be substantial dilution for current shareholders.”

Acutus has “multiple unique assets” such as mapping, access, therapeutic technologies, which the firm stated it would not sell.