PAVmed Announces Efforts to Regain Compliance with Nasdaq Listing Requirements
PAVmed Inc. (Nasdaq: PAVM) announced efforts to regain compliance with Nasdaq's listing requirements, including the deconsolidation of Lucid Diagnostics (Nasdaq: LUCD) from PAVmed's financial statements. This move will no longer reflect Lucid's operating losses in PAVmed's consolidated financials, while maintaining PAVmed's holdings of Lucid common stock. The deconsolidation is part of a series of steps to address Nasdaq's determination that PAVmed had not met continued listing standards for 180 consecutive days.
PAVmed also announced board changes, including the appointment of Dr. Sundeep Agrawal, a seasoned biotech investor, to replace departing directors. The company will request a hearing before a Nasdaq Hearings Panel to appeal the delisting determination, expected in October.
PAVmed Inc. (Nasdaq: PAVM) ha annunciato sforzi per ristabilire la conformità ai requisiti di quotazione di Nasdaq, inclusa la deconsolidazione di Lucid Diagnostics (Nasdaq: LUCD) dai bilanci di PAVmed. Questa mossa non rifletterà più le perdite operative di Lucid nei bilanci consolidati di PAVmed, mantenendo comunque le partecipazioni di PAVmed nelle azioni ordinarie di Lucid. La deconsolidazione fa parte di una serie di misure per affrontare la determinazione di Nasdaq secondo cui PAVmed non aveva soddisfatto gli standard di quotazione continua per 180 giorni consecutivi.
PAVmed ha anche annunciato cambiamenti nel consiglio, inclusa la nomina di Dr. Sundeep Agrawal, un esperto investitore nel settore biotecnologico, per sostituire i direttori uscenti. L'azienda richiederà un'audizione davanti a un Comitato di Ascolto di Nasdaq per appellarsi alla determinazione di delisting, previsto per ottobre.
PAVmed Inc. (Nasdaq: PAVM) anunció esfuerzos para recuperar el cumplimiento de los requisitos de cotización de Nasdaq, incluida la deconsolidación de Lucid Diagnostics (Nasdaq: LUCD) de los estados financieros de PAVmed. Este movimiento ya no reflejará las pérdidas operativas de Lucid en los estados financieros consolidados de PAVmed, mientras que se mantendrán las participaciones de PAVmed en acciones ordinarias de Lucid. La deconsolidación es parte de una serie de pasos para abordar la determinación de Nasdaq de que PAVmed no había cumplido con los estándares de cotización continua durante 180 días consecutivos.
PAVmed también anunció cambios en la junta, incluida la designación del Dr. Sundeep Agrawal, un experimentado inversor en biotecnología, para reemplazar a los directores salientes. La compañía solicitará una audiencia ante un Panel de Audiencias de Nasdaq para apelar la determinación de deslisting, que se espera para octubre.
PAVmed Inc. (Nasdaq: PAVM)는 나스닥의 상장 요건을 준수하기 위한 노력을 발표했으며, 이는 PAVmed의 재무제표에서 Lucid Diagnostics (Nasdaq: LUCD)의 비합산을 포함합니다. 이 조치는 이제 Lucid의 운영 손실을 더 이상 반영하지 않습니다 PAVmed의 통합 재무제표에서 여전히 Lucid 보통주의 PAVmed 보유를 유지하면서. 비합산은 PAVmed가 180일 연속으로 지속 상장 기준을 충족하지 못했다는 나스닥의 판단을 해결하기 위한 일련의 조치 중 하나입니다.
PAVmed는 또한 이사회 변경을 발표하며, Dr. Sundeep Agrawal, 경험이 풍부한 생명공학 투자자를 새로운 이사로 임명했습니다. 이 회사는 10월에 예상되는 상장폐지 결정에 항소하기 위해 나스닥 청문위원회 앞에서 청문회를 요청할 것입니다.
PAVmed Inc. (Nasdaq: PAVM) a annoncé des efforts pour retrouver la conformité aux exigences de cotation de Nasdaq, y compris la déconsolidation de Lucid Diagnostics (Nasdaq: LUCD) des états financiers de PAVmed. Ce mouvement ne reflétera plus les pertes opérationnelles de Lucid dans les états financiers consolidés de PAVmed, tout en maintenant les participations de PAVmed dans les actions ordinaires de Lucid. La déconsolidation fait partie d'une série de mesures pour répondre à la détermination de Nasdaq selon laquelle PAVmed n'avait pas satisfait aux normes de cotation continue pendant 180 jours consécutifs.
PAVmed a également annoncé des changements au sein du conseil, y compris la nomination de Dr. Sundeep Agrawal, un investisseur chevronné en biotechnologie, pour remplacer les administrateurs sortants. L'entreprise demandera une audience devant un Comité d'Audition de Nasdaq pour faire appel de la décision de retrait de cotation, prévue en octobre.
PAVmed Inc. (Nasdaq: PAVM) hat Maßnahmen angekündigt, um die Anforderungen an die Nasdaq-Notierung wieder zu erfüllen, einschließlich der De-Konsolidierung von Lucid Diagnostics (Nasdaq: LUCD) aus den Finanzberichten von PAVmed. Diese Maßnahme wird die Betriebsverluste von Lucid nicht mehr in den konsolidierten Finanzberichten von PAVmed widerspiegeln, während PAVmed weiterhin die Anteile an den Stammaktien von Lucid hält. Die De-Konsolidierung ist Teil einer Reihe von Schritten zur Reaktion auf die Feststellung von Nasdaq, dass PAVmed die fortlaufenden Notierungsstandards für 180 aufeinanderfolgende Tage nicht erfüllt hat.
PAVmed kündigte auch Änderungen im Vorstand an, darunter die Ernennung von Dr. Sundeep Agrawal, einem erfahrenen Biotechnologie-Investor, zur Nachfolge der ausscheidenden Direktoren. Das Unternehmen wird eine Anhörung vor einem Nasdaq-Ausschuss beantragen, um gegen die Delisting-Entscheidung Berufung einzulegen, die im Oktober erwartet wird.
- Deconsolidation of Lucid Diagnostics will remove operating losses from PAVmed's financial statements
- PAVmed's holdings of Lucid common stock will be reported as an asset, increasing stockholder's equity
- Appointment of experienced biotech investor Dr. Sundeep Agrawal to the board
- Risk of delisting from Nasdaq due to non-compliance with continued listing standards
- Need for further measures to increase stockholder's equity to maintain Nasdaq listing
Insights
PAVmed's deconsolidation of Lucid Diagnostics is a strategic move to improve its financial position and regain Nasdaq compliance. This action will eliminate Lucid's operating losses from PAVmed's consolidated financials, potentially boosting its stockholder's equity. However, it's important to note that this is just an accounting change and doesn't alter PAVmed's actual holdings in Lucid. The company's receipt of a Nasdaq determination letter indicates serious compliance issues and the upcoming hearing in October will be critical. While this move may provide short-term relief, investors should closely monitor PAVmed's ability to meet Nasdaq's requirements and its long-term financial stability.
The board restructuring at PAVmed, including the appointment of Dr. Agrawal and the departure of two directors, is a significant governance shift. This change aims to ensure PAVmed no longer controls Lucid's board, facilitating the deconsolidation. Dr. Agrawal's extensive biotech investment experience could bring valuable insights, particularly in pursuing strategic transactions. However, the rapid board changes in response to Nasdaq compliance issues raise questions about the company's long-term governance stability. Investors should watch for any further board alterations and their impact on company strategy and operations.
PAVmed's efforts to maintain its Nasdaq listing highlight the challenges faced by smaller biotech companies in meeting stringent market requirements. The deconsolidation strategy, while creative, may not be sufficient to address underlying financial concerns. Investors should consider how this move might impact PAVmed's market perception and ability to raise capital. The addition of Dr. Agrawal to the board could potentially open doors to new investment opportunities or strategic partnerships in the biotech sector. However, the company's focus on maintaining its listing status may divert resources from core business development, which could impact long-term growth prospects.
Efforts include appointment of seasoned biotech investor Sundeep Agrawal, M.D. to board to replace departing directors
The deconsolidation is the first in a series of steps that the Company is seeking to take in order to regain compliance with the Nasdaq continued listing standards. On September 10, the Company received a determination letter from Nasdaq, stating that the Company had not met the continued listing standards for 180 consecutive calendar days and that, unless the Company timely requests a hearing before a Nasdaq Hearings Panel to appeal the determination, the Company's securities will be subject to delisting. The Company will be requesting such a hearing, which it expects to be held in October.
"This deconsolidation is an important initial step in our ongoing efforts to strengthen PAVmed's balance sheet in order to regain compliance with Nasdaq's ongoing listing requirements while maintaining PAVmed's share ownership in Lucid," said Dennis McGrath, PAVmed's President and Chief Financial Officer. "We look forward to continuing to explore all available alternatives for further increasing the Company's stockholder's equity so that PAVmed can maintain its Nasdaq listing."
An important element of the deconsolidation included changes to the PAVmed board of directors to ensure that a majority of directors on the Lucid board are not also PAVmed directors. These changes involved the appointment of seasoned biotech investor Sundeep Agrawal, M.D., to the PAVmed board, in place of departing directors James L. Cox, M.D. and Joan B. Harvey. Dr. Cox will remain on Lucid's board of directors.
"We are thrilled to have Dr. Agrawal join our board, bringing with him deep experience in biotech and life sciences investing," said Lishan Aklog, M.D., PAVmed's Chairman and Chief Executive Officer. "I have had the pleasure of working closely with Dr. Agrawal in his role as a strategic advisor to the company for over a year. His depth of experience across a broad spectrum of biotech assets will be invaluable as we continue to pursue strategic transactions involving novel and groundbreaking technologies. I would also like to express my deepest gratitude to Dr. Cox and Ms. Harvey for their significant contributions to PAVmed during their tenure as board members."
Dr. Agrawal is a General Partner at Colt Ventures, a leading private investment firm, and has led investments totaling hundreds of millions of dollars into public and private biotech companies. He has served on numerous company boards, including current directorships at BlossomHill Therapeutics, a small molecule drug discovery and development company focused on unmet medical needs in oncology and autoimmune disease, and Alterome Therapeutics, a biopharmaceutical company leading the development of next generation, small molecule targeted therapies for the treatment of cancer. He previously served as a Vice President at Longitude Capital, a
For additional details regarding the deconsolidation and related changes in the Company's board of directors, please see the Current Report on Form 8-K filed by the Company today.
About PAVmed
PAVmed Inc. is a diversified commercial-stage medical technology company operating in the medical device, diagnostics, and digital health sectors. Its subsidiary, Lucid Diagnostics, is a commercial-stage cancer prevention medical diagnostics company that markets the EsoGuard® Esophageal DNA Test and EsoCheck® Esophageal Cell Collection Device—the first and only commercial tools for widespread early detection of esophageal precancer to mitigate the risks of esophageal cancer deaths. Its other subsidiary, Veris Health Inc., is a digital health company whose lead product is a digital cancer care platform with physiologic data collection, symptom reporting and telehealth functions, designed to improve personalized cancer care through remote patient monitoring. Veris has also been developing an implantable physiological monitor, designed to be implanted alongside a chemotherapy port, which will interface with the Veris cancer care platform.
For more and for more information about PAVmed, please visit pavmed.com.
For more information about Lucid Diagnostics, please visit luciddx.com.
For more information about Veris Health, please visit verishealth.com.
Forward-Looking Statements
This press release includes forward-looking statements that involve risk and uncertainties. Forward-looking statements are any statements that are not historical facts. Such forward-looking statements, which are 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; general economic and market conditions; the uncertainties inherent in research and development, including the cost and time required to advance PAVmed's products to regulatory submission; whether regulatory authorities will be satisfied with the design of and results from PAVmed's clinical and preclinical studies; whether and when PAVmed's products are cleared by regulatory authorities; market acceptance of PAVmed's products once cleared and commercialized; PAVmed's ability to raise additional funding as needed; and other competitive developments. In addition, PAVmed continues to monitor the COVID-19 pandemic and the pandemic's impact on PAVmed's businesses. These factors are difficult or impossible to predict accurately and many of them are beyond PAVmed's control. In addition, new risks and uncertainties may arise from time to time and are difficult to predict. 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 1A, "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 Report 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.
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SOURCE PAVmed Inc.
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