Business & Finance
PAVmed Announces Dividend of Lucid Diagnostics Common Stock and Reverse Stock Split
5 December 2023 -

PAVmed Inc (Nasdaq: PAVM, PAVMZ), a US-based, diversified commercial-stage medical technology company, operating in the medical device, diagnostics, and digital health sectors, announced on Monday a dividend of approximately 3.3 million shares of common stock of its majority-owned subsidiary, Lucid Diagnostics Inc (Nasdaq: LUCD), which equals the number of shares PAVmed will receive in the contemporaneous partial settlement of outstanding intercompany debt owed to PAVmed by Lucid.

As of 15 January 2024, PAVmed shareholders will participate in the dividend distribution. PAVmed also announced that it will conduct a 1-for-15 reverse stock split of its own common stock.

The PAVmed board of directors has declared a dividend of approximately 3.3 million shares of Lucid common stock with a record date of 15 January 2024. All holders of PAVmed capital stock as of such date will participate in the dividend on a pro rata basis.

Contemporaneous with the dividend, Lucid will issue to PAVmed an equivalent number of shares of Lucid common stock as payment for the portion of intercompany debt owed to PAVmed that Lucid incurred during fiscal year 2022. As a result, the number of shares of Lucid common stock held by PAVmed will remain unchanged following the distribution.

"This distribution is emblematic of our strong commitment to maximising value for our shareholders," said Lishan Aklog, MD, PAVmed's chairman and chief executive officer.

"We believe, in light of market conditions for both PAVmed and Lucid, that it is in our shareholders' best interests to allow them to directly hold a portion of Lucid shares in which they have or would have a beneficial interest through PAVmed. I am particularly pleased that we were able to structure the distribution in conjunction with the repayment of intercompany debt such that PAVmed's ownership of Lucid shares remains unchanged. We will continue to closely monitor market conditions as we consider other such opportunities to deliver value for our shareholders in the future."

PAVmed expects the distribution to be made within 30 days of the 15 January 2024 record date.

The reverse stock split will become effective on 7 December 2023, at 12:01 a.m. Eastern Time. The company's common stock will continue to trade on the Nasdaq Capital Market under the symbol 'PAVM' and will begin trading on a split-adjusted basis at the opening of the market on 7 December 2023 with the new CUSIP number, 70387R403. The reverse stock split is intended for the company to regain compliance with the USD1.00 per share minimum bid price requirement for continued listing of our common stock on Nasdaq.