Lucid Diagnostics secures $15.3 million in stock sale

NEW YORK - Lucid (NASDAQ:LCID) Diagnostics Inc. (NASDAQ:LUCD), a medical diagnostics company specializing in cancer prevention, has entered into subscription agreements to sell over 13 million shares of common stock at $1.10 each in a registered direct offering, anticipating gross proceeds of roughly $15.3 million. The offering price represents an 18% discount to the current trading price of $1.34, with the stock showing strong momentum, up 68% over the past six months according to InvestingPro data. This transaction is part of the company’s efforts to bolster its working capital and support general corporate functions.

The offering, facilitated by Canaccord Genuity as the sole placement agent, is expected to close on Wednesday, subject to customary closing conditions. Lucid Diagnostics , a subsidiary of PAVmed Inc . (NASDAQ:PAVM), aims to use the net proceeds for working capital and other general corporate purposes. This capital raise comes as the company faces significant cash burn, with InvestingPro analysis showing negative free cash flow of $44.46 million in the last twelve months.

Investors have shown interest in the offering, with certain accredited investors committing to the purchase. The sale of shares will result in approximately $15.3 million in gross proceeds before accounting for placement agent’s fees and other related expenses, which are estimated to be around $0.8 million.

The shares are being offered under a registration statement on Form S-3, which the Securities and Exchange Commission declared effective as of December 6, 2022. Details regarding the offering and the prospectus supplement will be accessible on the SEC’s website or through contacting Canaccord Genuity directly.

Lucid Diagnostics focuses on patients with gastroesophageal reflux disease (GERD), who are at risk of developing esophageal precancer and cancer. The company’s EsoGuard® Esophageal DNA Test, along with the EsoCheck® Esophageal Cell Collection Device, aims to facilitate early detection of esophageal precancer in at-risk patients, representing the first and only tools of their kind available commercially. Despite challenging market conditions, the company has achieved impressive revenue growth of 179% year-over-year, though analysts maintain a cautious outlook with price targets ranging from $2 to $7 per share. For deeper insights into LUCD’s financial health and growth prospects, including 10+ additional ProTips and comprehensive analysis, visit InvestingPro.

This press release statement serves as the basis for the factual information presented. It does not constitute an offer to sell or a solicitation of an offer to buy the securities mentioned.

In other recent news, Lucid Diagnostics Inc. has terminated its "at the market" equity offering, initially set to raise up to $6.5 million. The company managed to sell only 230,068 shares, generating approximately $292,790 before deciding to discontinue the offering. This decision indicates a potential shift in Lucid’s financing strategy as they will not resume sales until a new prospectus is filed with the SEC. Additionally, Lucid Diagnostics has regained compliance with Nasdaq’s minimum bid price requirement, maintaining a closing bid price of at least $1.00 per share for 10 consecutive trading days. This achievement ensures the company’s continued listing on the Nasdaq Capital Market.

Furthermore, Lucid Diagnostics has entered into a new partnership with LEAA Health, marking its entry into the concierge medicine market. This collaboration allows LEAA Health members access to Lucid’s EsoGuard Esophageal DNA Test, a tool for early detection of esophageal precancer. The partnership aligns with a growing trend toward prevention-focused healthcare and is seen as a strategic move to expand Lucid’s market presence. Meanwhile, PAVmed Inc., Lucid’s parent company, has regained compliance with Nasdaq’s stockholders’ equity listing requirements. This was achieved through financial maneuvers, including the deconsolidation of Lucid Diagnostics, ensuring PAVmed’s continued listing on the Nasdaq Capital Market.

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