NEW YORK--(BUSINESS WIRE)--PAVmed Inc. (Nasdaq:PAVM, PAVMW), a highly differentiated, multi-product medical device company, today announced the closing of a $1.5 million financing. The private placement consists of shares of Series A Convertible Preferred Stock and Series A Warrants.

Dr. Lishan Aklog, Chairman and CEO of PAVmed, stated, “The strong investor interest in our company has been extremely gratifying. Furthermore, we continue to be delighted with investors’ growing receptivity and endorsement of our business model.”

PAVmed employs a unique business model designed to advance products from concept to commercialization much more rapidly and with significantly less capital than traditional medical device companies.

The company is targeting FDA clearance of its first product, the PortIO™ Intraosseous Infusion System, by the end of Q2 2017. In addition, PAVmed expects to file a 510(k) premarket notification submission with the U.S. Food and Drug Administration (“FDA”) for its second product, CarpX™, for the percutaneous treatment of Carpal Tunnel Syndrome in Q2 2017. The company currently estimates that the aggregate capital required to obtain FDA clearance and initiate commercialization for both products to be approximately $1 million.

“We are excited about the near-term milestones for PortIO™ and CarpX™,” said Dr. Aklog. “The combined addressable market opportunities for these products are in excess of $1 billion. We believe that the commercialization of these products has the potential to generate significant value for our shareholders.”

Dr. Aklog added, “Our time and capital efficient business model enables our multi-product pipeline strategy. We look forward to making further announcements about the forward momentum of other products in our pipeline.”

The Preferred Stock is convertible into shares of PAVmed common stock (the “Common Stock”) at a conversion price of $6.00 per share. Cumulative dividends are payable on the Preferred Stock at a rate of 8% per annum, initially payable in-kind in additional shares of Preferred Stock. Each Series A Warrant is exercisable for one share of Common Stock at $8.00 per share. The conversion price and exercise price of each of the Preferred Stock and Series A Warrants, respectively, are subject to weighted average anti-dilution protection. The Series A Warrants are also exchangeable, subject to certain conditions, into a new series of warrants for which the company intends to seek a listing to facilitate trading of such warrants. PAVmed has agreed to file one or more registration statements covering the resale of securities underlying or issuable pursuant to the terms of the Preferred Stock and Series A Warrants.

In addition, the company continues to evaluate potential exchange offers involving its outstanding securities. The intention of any such transaction would be to enhance the value of such securities.

“The alternatives currently being evaluated are intended to reward holders of our outstanding securities, provide additional incentives for long-term ownership of such securities and attract additional investors to our company,” said Dr. Aklog.

The determination whether or not to proceed with any such transaction shall be in the company’s sole discretion and shall be based upon market conditions at such time, among other considerations. There can be no assurance that any such transaction will occur at all, or if it does, that it will ultimately result in any increase in value for the company’s securities.

About PAVmed Inc.

PAVmed Inc. (Nasdaq: PAVM, PAVMW) 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 further information, please visit www.pavmed.com.