PAVmed closed a $45 million financing on February 3 2026, announced the following day. The package comprised a $30 million Series D convertible preferred stock offering and a $15 million senior secured note.
The proceeds were used to redeem all outstanding Series C preferred stock and fully retire the company’s legacy convertible debt, removing a significant overhang from the balance sheet. The transaction added $22.3 million in cash to the balance sheet, of which $7.7 million is net cash available for working capital after the redemption and debt repayment.
The new senior secured note is $15 million, carries a 15.0% annual cash interest rate, and matures on February 3 2029. The Series D preferred shares have a conversion price of $6.50 per share and include warrants that could add up to $30 million if Lucid Diagnostics’ EsoGuard test receives a positive Medicare local coverage determination.
CEO Lishan Aklog described the transaction as a “decisive and transformational positive outcome,” underscoring the company’s intent to streamline its capital structure and free up capital for its subsidiaries. By eliminating convertible debt and preferred equity, PAVmed can now raise capital at the subsidiary level without diluting parent ownership, positioning Lucid Diagnostics and Veris Health for independent growth.
The financing follows a series of restructuring moves, including a reverse stock split in January 2026 and a debt‑for‑preferred equity exchange in late 2025, reflecting a broader strategy to simplify the balance sheet and improve liquidity. The net cash proceeds of $7.7 million will support day‑to‑day operations while the new note provides a predictable debt service stream for the next three years.
The move is expected to enhance investor confidence by reducing financial complexity and providing a clearer path to profitability, while also keeping the company positioned to capitalize on potential Medicare coverage for its flagship diagnostic test.
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