PAVmed Inc. Closes $5 Million Financing
July 05 2017 - 7:30AM
Business Wire
PAVmed Inc. (Nasdaq:PAVM, PAVMW), a highly
differentiated, multi-product medical device company, today
announced the closing of a $5 million financing provided by Scopia
Holdings LLC. The private placement offering consisted of $5
million in senior secured notes as well as Series S warrants. The
net proceeds of the transaction will be used for the company’s
working capital needs and advancement of its lead products.
“This financing is a very important milestone for our company
and will provide us with the necessary resources to advance our
growth strategy and multi-product pipeline towards
commercialization,” said Lishan Aklog M.D., Chairman and CEO of
PAVmed. “We see this investment by seasoned investors as a strong
vote of confidence in our mission to enhance shareholder value by
advancing innovative medical device products from concept to
commercialization using our unique business model focused on speed
to market and capital efficiency,” Dr. Aklog added.
Coincident with the financing, Scopia Holdings LLC was granted
the right to nominate one member of PAVmed’s board of directors and
has submitted David S. Battleman, M.D., M.B.A. to be its designee.
Dr. Battleman is a seasoned healthcare executive whose experience
spans management consulting, the life sciences industry and
academic medicine. He is Principal and Founder of TrueNorth
Lifesciences, a New York City-based firm providing consulting and
advisory services focusing on the commercialization of products in
the life sciences industry. Prior to founding TrueNorth, Dr.
Battleman served as senior principal at IMS Health, now Quintiles
IMS Holdings, Inc., (NYSE:Q), management consultant in the
healthcare practice of Bain & Company, executive director at
Pfizer (NYSE:PFE) and assistant professor of public health and
medicine at Weill Cornell Medical College. Dr. Battleman holds an
M.D. from Weill Cornell Medical College, an M.B.A. from the
University of Pennsylvania’s Wharton School of Business and an
M.Sc. from the Harvard School of Public Health.
“I look forward to joining the PAVmed team as a member of its
Board of Directors,” said Dr. Battleman. “I have spent my career
evaluating and working with life sciences companies and could not
be more impressed with the business model and product portfolio
this world-class management team has built. I am particularly
excited about the company’s lead products, the PortIO™ Intraosseous
Infusion System and the CarpX™ device for the percutaneous
treatment of Carpal Tunnel Syndrome, both of which have the
potential to be game-changers in their respective clinical
fields.”
In the financing, the Company offered and sold two-year secured
promissory notes (“Notes”) in an aggregate principal amount of
$5,000,000 and 2,660,000 Series S warrants (“Warrants”) to purchase
shares of common stock of the Corporation (“Common Stock”) for
$0.01 per share. The Notes carry a coupon rate of 15% per annum,
half of which is payable semi-annually and the balance at maturity,
and are secured by the assets of the company. The company has
agreed to file a registration statement covering the resale of
shares of Common Stock underlying the Warrants.
About PAVmed Inc.
PAVmed Inc. is a highly differentiated, multi-product medical
device company employing a unique business model designed to
advance products from concept 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 multi-product pipeline strategy with a view to
enhancing and accelerating value creation. PAVmed’s diversified
pipeline of products address unmet clinical needs, have attractive
regulatory pathways and market opportunities and encompass a broad
spectrum of clinical areas including carpal tunnel syndrome
(CarpX™), medical infusions (NextFlo™ and NextCath™),
interventional radiology (PortIO™ and NextCath), tissue ablation
and cardiovascular intervention (Caldus™) and pediatric ear
infections (DisappEAR™). For more information, please visit
www.pavmed.com.
Safe Harbor Statement
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 the
Company’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, the uncertainties inherent in research
and development, including the cost and time required advance our
products to regulatory submission; whether regulatory authorities
will be satisfied with the design of and results from our
pre‐clinical studies; whether and when our products are cleared by
regulatory authorities; market acceptance of our 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 our control. For a further list and description of these and
other important risks and uncertainties that may affect our future
operations, see Part I, Item IA, “Risk Factors,” in our 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 us after
our most recent Annual Report. We disclaim any intention or
obligation to publicly update or revise any forward-looking
statement to reflect any change in our 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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version on businesswire.com: http://www.businesswire.com/news/home/20170705005232/en/
InvestorsLHA Investor RelationsKim
Sutton Golodetz, 212-838-3777kgolodetz@lhai.comorMediaRooneyPartnersKate Barrette,
212-223-0561Kbarrette@rooneyco.com
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