PAVmed raises $45 million, eliminates convertible securities overhang

PAVmed Inc. (NASDAQ: PAVM) completed preferred stock and senior secured note financings totaling $45 million in gross proceeds, using the funds to eliminate all previously outstanding convertible securities.

The medical technology company issued $30 million of Series D Convertible Preferred Stock with associated warrants exercisable for up to an additional $30 million upon publication of a positive Medicare local coverage determination for its EsoGuard test. The company also issued a $15 million senior secured note with a February 2029 maturity.

PAVmed used $22.3 million in cash and the $15 million note to redeem all outstanding Series C Convertible Preferred Stock and retire convertible debt. The transactions yielded approximately $7.7 million in net cash proceeds for working capital.

The Series D Preferred Stock conversion into common stock requires stockholder approval at a special meeting scheduled no later than April 30, 2026. The conversion price is set at $6.50 per share. PAVmed has secured voting agreements from stockholders representing approximately 25% of outstanding common stock supporting the conversion.

If warrants are exercised and preferred stock converts upon shareholder approval, the financings would add approximately $37.7 million in cash to the balance sheet and create a capital structure consisting entirely of common stock and long-term debt.

PAVmed operates in medical devices, diagnostics, and digital health sectors through subsidiaries including Lucid Diagnostics Inc. (NASDAQ: LUCD) and Veris Health Inc. The company holds 31 million shares of Lucid common stock on its balance sheet.

The financing was conducted by existing long-term investors, according to the company's press release statement.

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