This is the second price cut that Pavmed has given for its outstanding warrants. Each of the New York-based company’s outstanding warrants were exercisable at $5.00 apiece for one share of common stock before the company slashed the price in half in December.
Pavmed also said today that it plans to implement a rights offering for holders of its common stock. The company will grant one transferable right to buy a new unit of Pavmed securities for each share of outstanding common stock, the company said. Each new unit is slated to include one share of common stock and one Series Z warrant, which will entitle the holder to buy one share of common stock.
“Pavmed is providing this opportunity to exercise warrants at a reduced price in order to encourage holders to exercise a meaningful portion of the outstanding warrants, providing the company with additional capital to advance its lead products, particularly its CarpX minimally invasive carpal tunnel syndrome device, through important near-term regulatory and commercialization milestones,” the company said in a statement last month.
The CarpX percutaneous device helps doctors relieve compression of the median nerve without the need for a surgical incision. The product, positioned using ultrasound guidance, combines a balloon catheter with bipolar radio-frequency cutting electrodes.
Pavmed filed a 510(k) application with the FDA for its CarpX device in November last year.