Each of the New York-based company’s outstanding warrants is currently exercisable at $5.00 apiece for one share of common stock. After Pavmed files tender offer materials, each warrant will have an exercise price of $2.50 per share.
The company said it expects the offer will be good for 20 business days, but it could decide to extend the deal.
“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.
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 last month.