PAVmed Inc., a differentiated, multi-product medical device company, 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., management consultant in the healthcare practice of Bain & Company, executive director at Pfizer 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 in an aggregate principal amount of $5,000,000 and 2,660,000 Series S warrants to purchase shares of common stock of the Corporation 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.