Efforts include appointment of seasoned
biotech investor Sundeep Agrawal,
M.D. to board to replace departing directors
NEW
YORK, Sept. 16, 2024 /PRNewswire/ -- PAVmed
Inc. (Nasdaq: PAVM) ("PAVmed" or the "Company") a diversified
commercial-stage medical technology company, operating in the
medical device, diagnostics, and digital health sectors, today
announced that, as part of its efforts to regain compliance with
Nasdaq's listing requirements, Lucid Diagnostics (Nasdaq: LUCD)
("Lucid") will be deconsolidated from PAVmed's financial
statements. As a result, PAVmed will no longer report
consolidated financials reflecting Lucid's operating losses.
PAVmed's holdings of Lucid common stock remain unchanged, and the
value of these holdings will be reported going forward as an asset
on its balance sheet, substantially increasing the Company's
stockholder's equity. The deconsolidation was effectuated by
changing the composition of PAVmed's board of directors and as a
result of it no longer controlling a majority of the voting
interests in Lucid. The deconsolidation does not affect
PAVmed's holdings of Lucid common stock and PAVmed remains Lucid's
largest shareholder.
The deconsolidation is the first in a series of steps that the
Company is seeking to take in order to regain compliance with the
Nasdaq continued listing standards. On September 10, the Company received a
determination letter from Nasdaq, stating that the Company had not
met the continued listing standards for 180 consecutive calendar
days and that, unless the Company timely requests a hearing before
a Nasdaq Hearings Panel to appeal the determination, the Company's
securities will be subject to delisting. The Company will be
requesting such a hearing, which it expects to be held in
October.
"This deconsolidation is an important initial step in our
ongoing efforts to strengthen PAVmed's balance sheet in order to
regain compliance with Nasdaq's ongoing listing requirements while
maintaining PAVmed's share ownership in Lucid," said Dennis
McGrath, PAVmed's President and Chief Financial Officer. "We look
forward to continuing to explore all available alternatives
for further increasing the Company's stockholder's equity so that
PAVmed can maintain its Nasdaq listing."
An important element of the deconsolidation included changes to
the PAVmed board of directors to ensure that a majority of
directors on the Lucid board are not also PAVmed directors.
These changes involved the appointment of seasoned biotech investor
Sundeep Agrawal, M.D., to the PAVmed
board, in place of departing directors James L. Cox, M.D. and Joan B. Harvey. Dr. Cox will remain on Lucid's
board of directors.
"We are thrilled to have Dr. Agrawal join our board, bringing
with him deep experience in biotech and life sciences investing,"
said Lishan Aklog, M.D., PAVmed's
Chairman and Chief Executive Officer. "I have had the pleasure of
working closely with Dr. Agrawal in his role as a strategic advisor
to the company for over a year. His depth of experience across a
broad spectrum of biotech assets will be invaluable as we continue
to pursue strategic transactions involving novel and groundbreaking
technologies. I would also like to express my deepest
gratitude to Dr. Cox and Ms. Harvey for their significant
contributions to PAVmed during their tenure as board members."
Dr. Agrawal is a General Partner at Colt Ventures, a leading
private investment firm, and has led investments totaling hundreds
of millions of dollars into public and private biotech
companies. He has served on numerous company boards,
including current directorships at BlossomHill Therapeutics,
a small molecule drug discovery and development company
focused on unmet medical needs in oncology and autoimmune disease,
and Alterome Therapeutics, a biopharmaceutical company leading the
development of next generation, small molecule targeted therapies
for the treatment of cancer. He previously served as a Vice
President at Longitude Capital, a $2
billion healthcare investment firm, and prior to that, as an
Executive Director in Healthcare Investment Banking at Oppenheimer
& Co. Dr. Agrawal holds an M.D. from the George Washington School of Medicine and a B.A.
in Biology from George Washington University. He
completed his clinical training at Lenox Hill Hospital in
New York, NY.
For additional details regarding the deconsolidation and related
changes in the Company's board of directors, please see the Current
Report on Form 8-K filed by the Company today.
About PAVmed
PAVmed Inc. is a diversified commercial-stage medical technology
company operating in the medical device, diagnostics, and digital
health sectors. Its subsidiary, Lucid Diagnostics, is a
commercial-stage cancer prevention medical diagnostics company that
markets the EsoGuard® Esophageal DNA Test and EsoCheck® Esophageal
Cell Collection Device—the first and only commercial tools for
widespread early detection of esophageal precancer to mitigate the
risks of esophageal cancer deaths. Its other subsidiary, Veris
Health Inc., is a digital health company whose lead product is a
digital cancer care platform with physiologic data collection,
symptom reporting and telehealth functions, designed to improve
personalized cancer care through remote patient monitoring. Veris
has also been developing an implantable physiological monitor,
designed to be implanted alongside a chemotherapy port, which will
interface with the Veris cancer care platform.
For more and for more information about PAVmed, please visit
pavmed.com.
For more information about Lucid Diagnostics, please visit
luciddx.com.
For more information about Veris Health, please visit
verishealth.com.
Forward-Looking Statements
This press release includes forward-looking statements that
involve risk and uncertainties. Forward-looking statements are any
statements that are not historical facts. Such forward-looking
statements, which are 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, volatility in the
price of PAVmed's common stock; general economic and market
conditions; the uncertainties inherent in research and development,
including the cost and time required to advance PAVmed's products
to regulatory submission; whether regulatory authorities will be
satisfied with the design of and results from PAVmed's clinical and
preclinical studies; whether and when PAVmed's products are cleared
by regulatory authorities; market acceptance of PAVmed's products
once cleared and commercialized; PAVmed's ability to raise
additional funding as needed; and other competitive developments.
In addition, PAVmed continues to monitor the COVID-19 pandemic and
the pandemic's impact on PAVmed's businesses. These factors are
difficult or impossible to predict accurately and many of them are
beyond PAVmed's control. In addition, new risks and uncertainties
may arise from time to time and are difficult to predict. 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 1A, "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.
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SOURCE PAVmed Inc.