PAVmed Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

PAVmed Inc. (Nasdaq: PAVM, PAVMZ) has initiated a public offering of its common stock, with a possible 30-day option for underwriters to purchase an additional 15% of the offering. The offering aims to repay the company's outstanding debt, including convertible notes, and fund working capital. The offering is conducted under a shelf registration statement effective since September 17, 2020, with Cantor Fitzgerald & Co. as the sole book-running manager. The final terms will be disclosed in a subsequent prospectus supplement.

Positive

• Intended use of funds includes repaying all outstanding debt and supporting working capital, potentially strengthening the company's balance sheet.

Negative

• Offering could result in shareholder dilution.
• Company has not yet received FDA clearance for many products, which may impact future revenue.

NEW YORK, Feb. 22, 2021 (GLOBE NEWSWIRE) -- PAVmed Inc. (Nasdaq: PAVM, PAVMZ) (the “Company” or “PAVmed”), a highly differentiated, multi-product, commercial-stage medical device company, today announced that it is commencing an underwritten public offering of its common stock (the “Offering”). PAVmed also expects to grant to the underwriter for the Offering a 30-day option to purchase up to an additional 15% of the number of shares of common stock offered in the public offering. All of the shares to be sold in the Offering will be sold by PAVmed, subject to customary closing conditions. PAVmed intends to use the net proceeds from the Offering to repay all of the Company’s outstanding debt, including all outstanding convertible notes (subject to our agreeing with the holder of such notes on the terms of repayment), with the balance to be used for working capital and general corporate purposes.

Cantor Fitzgerald & Co. is acting as sole book-running manager for the Offering.

The Offering is being made pursuant to a shelf registration statement (File No. 333-248709) declared effective by the Securities and Exchange Commission (“SEC”) on September 17, 2020. A preliminary prospectus supplement relating to the Offering will be filed with the SEC. The securities may be offered only by means of a written prospectus, including a prospectus supplement, forming a part of the effective registration statement. When available, copies of the preliminary prospectus supplement and accompanying base prospectus relating to the Offering may be obtained from the SEC at http://www.sec.gov. Alternatively, copies of the preliminary prospectus supplement and the accompanying prospectus relating to the Offering can be obtained, when available, from Cantor Fitzgerald & Co., Attn: Capital Markets, 499 Park Avenue, 6th floor, New York, NY 10022; Email: prospectus@cantor.com. The final terms of the Offering will be disclosed in a final prospectus supplement to be filed with the SEC.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About PAVmed

PAVmed Inc. is a highly differentiated, multi-product, commercial-stage medical device company employing a unique business model designed to advance innovative products to commercialization rapidly and with 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 while seeking to further expand its pipeline through relationships with its network of clinician innovators at leading academic centers. PAVmed’s diversified product pipeline addresses unmet clinical needs encompassing a broad spectrum of clinical areas with attractive regulatory pathways and market opportunities. Its four operating divisions include GI Health (EsoGuard^® Esophageal DNA Test, EsoCheck^® Esophageal Cell Collection Device, and EsoCure^™ Esophageal Ablation Device with Caldus^™ Technology), Minimally Invasive Interventions (CarpX^® Minimally Invasive Device for Carpal Tunnel Syndrome), Infusion Therapy (PortIO^™ Implantable Intraosseus Vascular Access Device and NextFlo^™ Highly Accurate Infusion Platform Technology), and Emerging Innovations (non-invasive laser-based glucose monitoring, pediatric ear tubes, and mechanical circulatory support).

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, PAVmed’s ability to complete the offering; 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 many of its products. The Company has been monitoring the COVID-19 pandemic and its impact on our business. The Company expects the significance of the COVID-19 pandemic, including the extent of its effect on the Company’s financial and operational results, to be dictated by, among other things, the success of efforts to contain it and the impact of actions taken in response. 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 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.

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

Katie Gallagher
LaVoieHealthScience
(617) 792-3937
PAVmed@lavoiehealthscience.com

FAQ

What is PAVmed's recent public offering about?

PAVmed has announced a public offering of its common stock to repay outstanding debt and support general corporate purposes.

What are the intended uses for the proceeds from PAVmed's offering?

The proceeds will be used to repay all outstanding debt and for working capital.

Who is managing PAVmed's public offering?

Cantor Fitzgerald & Co. is acting as the sole book-running manager for the offering.

Does PAVmed have FDA clearance for its products?

No, PAVmed has not yet received FDA clearance for many of its products, which poses risks for future revenue.

What are the potential impacts of PAVmed's stock offering on shareholders?

The offering may lead to shareholder dilution, impacting the value of existing shares.