PAVMed Inc., a medical device company with a market capitalization of just $6.86 million, is currently under scrutiny from the Nasdaq Stock Market due to its share price falling below the required minimum. The stock, currently trading at $0.65, has declined over 73% in the past year.
On January 23, 2025, the company received a notice from Nasdaq indicating that its common stock had not met the minimum bid price of $1 over the past 30 business days, violating Nasdaq Listing Rule 5550(a)(2). According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
The company has been given a 180-day period, until July 22, 2025, to regain compliance. To achieve this, PAVMed’s common stock must maintain a closing bid price of at least $1 for ten consecutive business days. If PAVMed fails to meet this requirement within the allotted timeframe, it may be granted an additional 180 days, provided it meets the necessary conditions. If not, Nasdaq will issue a delisting notice.
Despite this setback, the trading of PAVMed’s common stock and Series Z warrants remains unaffected. They will continue to be listed under the ticker symbols “PAVM” and “PAVMZ,” respectively. PAVMed has stated it is exploring all options to regain compliance with Nasdaq’s listing standards. InvestingPro data reveals concerning financial health indicators, including a significant debt burden of $34.93 and a low current ratio of 0.06, suggesting the company may face challenges meeting its short-term obligations.
Additionally, on January 24, 2025, PAVMed finalized the sale of 2,653 shares of its Series C Convertible Preferred Stock at a price of approximately $2.653 million, which was used to offset certain unsecured debt obligations. This transaction was part of a previously disclosed agreement with the holder of the company’s outstanding Senior Secured Convertible Notes.
The sale of the Series C Preferred Stock and the potential issuance of common stock resulting from its conversion are exempt from registration under the Securities Act of 1933, according to Section 4(a)(2), due to the nature of the transaction involving accredited investors and not constituting a public offering.
The conversion terms of the Series C Preferred Stock, detailed in a November 21, 2024, report, could lead to the issuance of approximately 2,484,082 shares at the voluntary conversion price of $1.068 per share. Under certain conditions, the conversion price could be based on the market price, with a maximum equal to the voluntary conversion price and a minimum of $0.2136 per share, potentially resulting in the issuance of up to 12,420,412 shares of common stock.
For deeper insights into PAVMed’s financial health and detailed analysis of its debt structure, investors can access comprehensive Pro Research Reports and 12 additional ProTips through InvestingPro.
This information is based on a press release statement and an SEC filing by PAVMed.
In other recent news, PAVmed Inc (NASDAQ:). announced significant financial restructuring and robust Q3 2024 results. The company’s shareholders approved two key proposals, enabling the issuance of common stock upon the conversion of Series C Convertible Preferred Stock and the increase of authorized shares of common stock from 50 million to 250 million. These approvals, related to the Debt Exchange Agreement and the Securities Purchase Agreement, are expected to be finalized by January 31, 2025.
PAVmed’s strategic restructuring, including the deconsolidation of Lucid (NASDAQ:) Diagnostics, resulted in a Q3 net income of $61 million and a 20% increase in Lucid’s revenue. Furthermore, PAVmed’s subsidiary Veris Health secured a $1.8 million NIH grant. The company is also implementing a plan to retain its NASDAQ listing, with a compliance deadline extended to the same date.
These recent developments highlight PAVmed’s efforts to strengthen its financial position and expand operations amidst a significant debt burden and rapidly depleting cash reserves. The company’s annual revenue stands at $4.03 million. The financial restructuring moves are crucial to the company’s future prospects, as indicated by analyst insights from InvestingPro.
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