PAVmed Strengthens Financial Position by Closing Preferred Stock and Note Financings Successfully

PAVmed Financial Transformation: Closing of Preferred Stock and Senior Secured Note Financings

PAVmed Inc., a notable player in the medical technology sector, has recently finalized significant financing agreements that have transformed its financial landscape. On February 4, 2026, the company announced the closure of its Series D Preferred Stock offering, generating gross proceeds of $30 million. Additionally, they secured a new senior secured note, resulting in a further $15 million, aimed at eliminating outstanding convertible debt and streamlining their capital structure.

Details of the Financing Agreements

The Series D Preferred Stock comes with warrants that can be exercised for an additional $30 million upon the publication of a favorable draft Medicare local coverage determination (LCD) for the EsoGuard Esophageal DNA Test, which is offered by PAVmed's subsidiary, Lucid Diagnostics, Inc. The substantial backing from existing long-term investors has resulted in a decisive shift in PAVmed’s financial position, alleviating the burden of previous convertible securities that had created an overhang on the company's capital structure.

Consequently, PAVmed will conduct a special stockholders' meeting by April 30, 2026, to attain approval for converting the new Series D Preferred Stock into common shares at a conversion price set at $6.50. There's already a commitment from shareholders representing about 25% of the outstanding common stock to support this initiative, enhancing the likelihood of a smooth transition.

Strengthening the Balance Sheet

The proceeds from the $30 million Series D offering, alongside the $15 million secured note, have been strategically utilized to retire all outstanding Series C Convertible Preferred Stock. This maneuver clears out a substantial portion of legacy convertible securities, leading to a net cash influx of approximately $7.7 million into PAVmed’s balance sheet, which is aimed at general working capital purposes.

Upon the successful exercise of the warrants and conversion of preferred shares, PAVmed’s capital structure will consist solely of common stock and long-term debt. This is projected to enhance their cash reserves significantly by approximately $37.7 million, an outcome that reflects a robust financial health.

Future Prospects

Dr. Lishan Aklog, Chairman and CEO of PAVmed, has expressed optimism regarding the company's revised capital structure. He emphasized that this transformation will help the company realize significant value from its assets, especially as PAVmed looks to accelerate growth opportunities. With a strong financial base, the company is well-positioned to pursue various commercial avenues that promise to boost long-term shareholder value.

In addition, PAVmed retains 31 million shares of Lucid common stock, which may provide additional financial leverage for future growth. The company’s other sub-entity, Veris Health Inc., focused on personalized cancer management through remote monitoring, stands to gain from this fresh capital as well.

As PAVmed prepares for its upcoming challenges and opportunities, the company is emphasizing its commitment to propelling itself into a high-growth diversified life sciences business supported by independent subsidiaries. This new financial foundation marks a significant progression in PAVmed's vision for extensive and sustainable growth.

For further information on PAVmed, Lucid Diagnostics, and Veris Health, please visit their respective websites. Stay tuned for more updates on these transformative developments and the exciting path ahead for PAVmed and its subsidiaries.