PAVmed Inc . (NASDAQ:PAVM), a medical device company currently valued at $7 million in market capitalization, announced today that at a special meeting of stockholders, two key proposals received approval. According to InvestingPro data, the company operates with a significant debt burden of $34.93 million and a concerning current ratio of 0.06. The first proposal, which passed with significant support, allows for the issuance of common stock upon the conversion of Series C Convertible Preferred Stock, in accordance with Nasdaq Listing Rule 5635.
This issuance is related to both the Debt Exchange Agreement dated November 15, 2024, and the Securities Purchase Agreement dated November 20, 2024. The second proposal, also receiving strong approval, amends the company's certificate of incorporation to increase the authorized shares of common stock from 50 million to 250 million.
The approvals mark a critical step for PAVmed, enabling the company to proceed with the debt exchange and the sale of Series C Preferred Stock. Both transactions are expected to be finalized by January 31, 2025, as the company looks to strengthen its financial position and expand its operations. With annual revenue of $4.03 million and rapidly depleting cash reserves, these financial restructuring moves are crucial.
InvestingPro subscribers have access to 12 additional key insights about PAVmed's financial health and future prospects. The successful vote also negated the need for an adjournment proposal, as all matters were resolved satisfactorily.
The special meeting, held on Wednesday, saw participation from stockholders representing approximately 53.8% of the outstanding shares. The stock, which currently trades at $0.65, appears undervalued according to InvestingPro's Fair Value analysis, despite falling 81.79% over the past year. The amendments to the company's charter will take effect immediately, as the certificate of amendment was filed with the Delaware Secretary of State on the same day.
In other recent news, PAVmed Inc. reported strategic restructuring and robust financial results in its Q3 2024 business update. The diversified life sciences company announced a significant improvement in its balance sheet following the deconsolidation of Lucid (NASDAQ:LCID) Diagnostics, which led to a reduction in shareholder deficit and a Q3 net income of $61 million. This restructuring also resulted in Lucid Diagnostics increasing its revenue by 20%.
In addition, PAVmed's subsidiary Veris Health secured a $1.8 million NIH grant. The firm is also taking steps to retain its NASDAQ listing, with the compliance deadline extended to January 31, 2025.
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