Extends cash runway to support multiple milestones including commercialization of two lead products
NEW YORK, Nov. 05, 2019 (GLOBE NEWSWIRE) -- PAVmed Inc. (Nasdaq: PAVM, PAVMZ) (the “Company” or “PAVmed”), a highly differentiated, multiproduct medical device company, today announced it has entered into a financing agreement (the “Financing”) with an existing and a new institutional investor for a maximum amount of $14 million. Proceeds from the Financing will be used to support continued advancement of PAVmed’s lead products to commercialization and for general working capital purposes. Maxim Group LLC acted as financial advisor in this transaction.
Lishan Aklog, M.D., PAVmed’s Chairman and Chief Executive Officer, commented, “We are pleased to secure this Financing, which significantly enhances our financial flexibility by providing immediate near-term capital and access to a committed second tranche at our discretion. Importantly, it enables PAVmed to execute on the clinical and regulatory milestones we have previously outlined as we bring our lead products to market and to evaluate new innovative technologies for potential licensing agreements. This Financing was completed with proven partners committed to our long-term vision, at attractive terms, which protect our shareholders from immediate dilution at unfavorable prices. It also provides us with future optionality as we focus on securing other non-dilutive financing from the sale of a portfolio asset and funding within our independent, majority-owned subsidiary, Lucid Diagnostics.”
The Financing will consist of two $7 million two-year 7.875% convertible senior secured notes, denoted as Series A and B. The Financing includes the same investor whom PAVmed issued $7.75 million of convertible senior secured notes in December 2018, with terms similar to the previous agreement including an initial interest-only period through March 30, 2020, a conversion price of $1.60, and the option to make installment payments in cash or by issuing shares of common stock valued at a modest discount to the volume-weighted average price (VWAP) of the Company’s common stock at the time of payment. The December 2018 note is expected to be paid in full prior to the principal amortization of the new Series A notes. The Series B notes will be available in the future at the Company’s discretion and subject to certain conditions.
“This Financing provides us with the working capital necessary to continue moving forward and to complete the major milestones we are approaching in the coming months, such as the resubmission and expected clearance of the FDA 510(k) application for CarpX™ and the full U.S. commercial launches of both EsoGuard™ and EsoCheck™,” said Dr. Aklog. “The optionality of the Series B note strengthens our position as we seek to monetize certain assets such as NextFlo™ to provide us with non-dilutive capital. We believe this extended capital runway puts us in an excellent position to build long-term shareholder value by advancing our innovative products to commercialization, to the benefit of patients with unmet clinical needs.”
Additional information on the credit agreement is available on the Company's current report on Form 8-K filed yesterday with the Securities and Exchange Commission (the “SEC”).
About PAVmed
PAVmed Inc. is a highly differentiated, multiproduct medical device company employing a unique business model designed to advance innovative products to commercialization much more rapidly and with significantly less capital than the typical medical device company. This proprietary model enables PAVmed to pursue an expanding pipeline strategy with a view to enhancing and accelerating value creation. PAVmed’s diversified pipeline of products address unmet clinical needs encompassing a broad spectrum of clinical areas with attractive regulatory pathways and market opportunities. Its five lead technologies provide groundbreaking approaches to carpal tunnel syndrome (CarpX™), precancerous conditions of the esophagus (EsoGuard™/EsoCheck™), vascular access (PortIO™), pediatric ear infections (DisappEAR™) and medical infusions (NextFlo™). The company is also developing innovative products in other areas, such as catheters and tissue ablation, while seeking to further expand its pipeline through engagements with clinician innovators and leading academic medical centers. For more information, please visit www.pavmed.com, follow us on Twitter, connect with us on LinkedIn, and watch our videos on YouTube. For more information on our majority owned subsidiary, Lucid Diagnostics Inc., please visit www.luciddx.com, follow Lucid on Twitter, and connect with Lucid on LinkedIn.
Forward-Looking Statements
This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of PAVmed’s management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Risks and uncertainties that may cause such differences include, among other things, volatility in the price of PAVmed’s common stock, Series W Warrants and Series Z Warrants; general economic and market conditions; the uncertainties inherent in research and development, including the cost and time required advance PAVmed’s products to regulatory submission; whether regulatory authorities will be satisfied with the design of and results from PAVmed’s preclinical studies; whether and when PAVmed’s products are cleared by regulatory authorities; market acceptance of PAVmed’s products once cleared and commercialized; our ability to raise additional funding and other competitive developments. PAVmed has not yet received clearance from the FDA or other regulatory body to market any of its products. New risks and uncertainties may arise from time to time and are difficult to predict. All of these factors are difficult or impossible to predict accurately and many of them are beyond PAVmed’s control. For a further list and description of these and other important risks and uncertainties that may affect PAVmed’s future operations, see Part I, Item IA, “Risk Factors,” in PAVmed’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, as the same may be updated in Part II, Item 1A, “Risk Factors” in any Quarterly Reports on Form 10-Q filed by PAVmed after its most recent Annual Report. PAVmed disclaims any intention or obligation to publicly update or revise any forward-looking statement to reflect any change in its expectations or in events, conditions, or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements.
Contacts:
Investors
Mike Havrilla
Director of Investor Relations
(814) 241-4138
JMH@PAVmed.com
Media
Shaun O’Neil
Chief Commercial Officer
(518) 812-3087
SMO@PAVmed.com