Lucid Diagnostics Inc. (NASDAQ: LUCD) recently disclosed in an 8-K SEC filing dated November 8, 2024, that the company has notified the holder of its Senior Convertible Note from the 2023 Convertible Note that it will be exercising its right to redeem the note for the Optional Redemption Price specified. The company has a period of not less than ten business days and not more than twenty business days from the date of the notice to fulfill the redemption.
To facilitate the payment of the Optional Redemption Price, Lucid has entered into a Securities Purchase Agreement with accredited investors known as the 2024 Note Investors. These investors have pledged to purchase Senior Secured Convertible Notes, collectively referred to as the 2024 Convertible Notes. As of the current date, the total commitments from the 2024 Note Investors surpass the Optional Redemption Price.
Key details highlighted in the 2024 Convertible Notes include:
– 12.0% annual stated interest rate
– Contractual maturity period of five years from the date of issuance
– Contractual conversion price of $1.00 per share of Lucid’s common stock
– Interest payments quarterly in cash or shares based on the current market price
Furthermore, the 2024 Convertible Notes come with provisions for conversion into the company’s common stock, limits on redemption, and security against all present and future tangible and intangible assets of Lucid Diagnostics.
Investors involved in the purchase of the 2024 Convertible Notes will have participation rights in subsequent equity or debt offerings by the company. Additionally, certain investors will be granted the right to appoint a representative to the company’s board of directors, subject to outlined terms.
The filing also indicated that the offer and sale of the 2024 Convertible Notes and the associated common stock shares are exempt from Securities Act registration requirements, as detailed under Section 4(a)(2) of the Securities Act.
The management highlighted in the filing that the content contains forward-looking statements, subject to risks and uncertainties, and reiterated the incorporation of risk factors detailed in the Company’s prior reports. Lucid Diagnostics has committed to updating information as needed based on legal requirements.
The Filing was duly signed by Dennis McGrath, the Chief Financial Officer of PAVMED INC., on November 12, 2024.
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Lucid Diagnostics’s 8K filing here.
About Lucid Diagnostics
Lucid Diagnostics Inc operates as a commercial-stage medical diagnostics technology company in the United States. The company focuses on patients with gastroesophageal reflux disease (GERD) who are at risk of developing esophageal precancer and cancer, primarily highly lethal esophageal adenocarcinoma.
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