NEW YORK – Medical device firm PavMed said on Thursday it has raised $7 million in gross proceeds from a private placement of senior convertible promissory notes with an existing institutional investor.
The New York-based company will use the proceeds to support commercialization, regulatory, and product development activities – including the commercialization of EsoGuard/EsoCheck and CarpX – its EsoGuard BE-1 and E-2 clinical trials, and for general working capital purposes.
The EsoGuard and EsoCheck tests were developed and are marketed by PavMed subsidiary Lucid Diagnostics.
PavMed said that the financing round was led by an unnamed existing institutional investor who participated in a senior convertible promissory note financing with similar terms in December 2018, November 2019, and April 2020. The notes in the financing round carry a conversion price of $5.00 per share.
Lucid Diagnostics signed a research agreement with the Fred Hutchinson Cancer Research Center in February to evaluate the center's Barrett's Esophagaus progression biomarkers using the firm's EsoCheck device.