PAVmed Shareholders As Of January 15, 2024 Will Participate In Distribution Of ~3.3M Shares Of Lucid Common Stock And Also Announces 1-For-15 Reverse Stock Split
Portfolio Pulse from Benzinga Newsdesk
PAVmed Inc. (NASDAQ:PAVM) announced a dividend distribution of approximately 3.3 million shares of Lucid Diagnostics Inc. (NASDAQ:LUCD) common stock to its shareholders on record as of January 15, 2024. This is part of a partial settlement of intercompany debt owed by Lucid to PAVmed. Concurrently, PAVmed will undergo a 1-for-15 reverse stock split effective December 7, 2023, to comply with Nasdaq's minimum bid price requirement. The reverse stock split will reduce PAVmed's authorized shares and adjust terms of outstanding warrants and securities.
December 04, 2023 | 9:29 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Lucid Diagnostics Inc. will issue 3.3 million shares to PAVmed as part of an intercompany debt settlement, which will be distributed to PAVmed shareholders.
The issuance of shares to PAVmed and subsequent dividend distribution to PAVmed shareholders could increase the visibility and liquidity of Lucid's stock. However, it may also dilute existing shareholders' equity, which could have a neutral to slightly negative impact on the stock price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
PAVmed Inc. is conducting a 1-for-15 reverse stock split to meet Nasdaq's minimum bid price requirement and distributing 3.3 million Lucid shares as a dividend.
The reverse stock split is a neutral to slightly negative signal as it indicates PAVmed is trying to meet Nasdaq's listing requirements, which could be seen as a sign of weakness. However, the dividend distribution of Lucid shares could be perceived positively by the market, potentially offsetting the negative sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100