Pavmed (NSDQ:PAVM) said today that it filed a preliminary prospectus with the SEC for an offering of the rights to buy a new unit in exchange for each share of outstanding common stock.
The medical device company plans to offer the rights to purchase up to 9 million units at $2.25 apiece on May 21, valuing the offering at $20.3 million.
According to the proposed rights offering, each unit will include one share of common stock and one publicly-traded Series Z warrant. Each Series Z warrant entitles the buyer to purchase one share of common stock at $3.00 per share until April 30, 2024, according to Pavmed.
The company expects the rights will be exercisable at $2.25 apiece under the proposed ‘PAVMU’ ticker on the Nasdaq exchange for 90 days.
Pavmed said it plans to use the proceeds from the rights offering to fund its research and development efforts, as well as general corporate purposes.
PAVM shares were trading at $1.63 apiece in mid-morning activity today, down -2.9%.
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