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Lucid (NASDAQ:LCID) Diagnostics Inc. (NASDAQ:LUCD), a medical technology company with a market capitalization of $74.3 million, has officially terminated its "at the market" (ATM) equity offering as of today. According to InvestingPro data, the company has shown impressive revenue growth of 179% over the last twelve months, though it continues to face profitability challenges. The company initially filed the prospectus supplement for the offering on December 6, 2022, which allowed for the sale of common stock up to $6.5 million. However, as of this report, Lucid Diagnostics has only sold 230,068 shares, raising approximately $292,790. This limited capital raise comes as InvestingPro analysis indicates the company is quickly burning through cash, with negative free cash flow of $44.46 million in the last twelve months.
The equity offering was conducted under a Controlled Equity Offering℠ Sales Agreement with Cantor Fitzgerald & Co., which permitted the company to sell shares through Cantor acting as a sales agent. Despite the termination of the ATM Prospectus Supplement, the Sales Agreement remains in effect.
The decision to discontinue the ATM offering means that no further sales of common stock will occur under the previous prospectus supplement. Lucid Diagnostics will not resume sales until a new prospectus or prospectus supplement is filed with the Securities and Exchange Commission (SEC).
This move comes amid a broader context in which companies often utilize ATM offerings to incrementally raise capital over time. The termination of such an offering could indicate a shift in the company’s financing strategy or response to market conditions.
Investors and market watchers will be looking for any further updates from Lucid Diagnostics regarding its capital raising plans and strategic direction following this development. The information in this article is based on a press release statement from Lucid Diagnostics filed with the SEC.
In other recent news, Lucid Diagnostics Inc. has regained compliance with Nasdaq’s minimum bid price requirement, ensuring its continued listing on the Nasdaq Capital Market. The company achieved this by maintaining a closing bid price of at least $1.00 per share for 10 consecutive trading days. Additionally, Lucid Diagnostics has entered into a new partnership with LEAA Health, marking its entry into the concierge medicine sector. This partnership allows LEAA Health’s members to access Lucid’s EsoGuard Esophageal DNA Test, reflecting a shift towards prevention-focused healthcare.
In related developments, PAVmed Inc (NASDAQ:PAVM)., the parent company of Lucid Diagnostics, has also regained compliance with Nasdaq’s stockholders’ equity listing requirements. PAVmed increased its stockholders’ equity to over $2.5 million, mainly through strategic financial maneuvers, including the deconsolidation of Lucid Diagnostics and restructuring of convertible debt. This compliance ensures that PAVmed’s securities will maintain their listing on the Nasdaq Capital Market. PAVmed will be under a one-year monitoring period by a Nasdaq panel to ensure continued compliance. These recent developments highlight the ongoing strategic efforts by both Lucid Diagnostics and PAVmed to strengthen their market positions.
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