The note was sold with an issue discount of $725,000, for gross proceeds to Pavmed of $7 million. Maxim Group, which acted as the placement agent for the transaction, received a 6.5% fee, according to a report filed with the SEC.
The company said that after it consummated the sale of its convertible note, Pavmed repaid the outstanding principal balance and all accrued interest on a senior secured note held by an existing lender. Pavmed dealt a cash payment of $5 million to Scopia Holdings and issued 600,000 shares of common stock.
Earlier this year, the FDA group reviewing the 510(k) application for Pavmed’s CarpX device said it wanted the company to resubmit its application.
The FDA told the company that it had not reached a consensus within the review period set by the agency’s rules. To extend the review process, the FDA recommended that Pavmed resubmit the application. In a filing with the SEC, Pavmed said it resubmitted the application in August.
The company’s minimally-invasive CarpX device is designed to treat carpal tunnel syndrome. The device allows physicians to relieve compression of a patient’s median nerve without the use of an incision.
The ultrasound-guided system features a balloon catheter with bipolar radio-frequency cutting electrodes, according to Pavmed. Once the device is activated, it creates a space to protect the nerve from the cutting electrode and decompresses the nerve by dividing the transverse carpal ligament.