Lucid Diagnostics Announces Pricing of Public Offering of Common Stock

Rhea-AI Summary

Lucid Diagnostics (Nasdaq: LUCD), a commercial-stage cancer prevention medical diagnostics company and PAVmed subsidiary, has announced the pricing of its underwritten public offering of 12.5 million shares of common stock at $1.20 per share.

The company expects to raise approximately $15 million in gross proceeds before deducting underwriting costs and other expenses. Lucid has also granted underwriters a 45-day option to purchase up to an additional 1.875 million shares at the public offering price. The offering is expected to close around April 11, 2025.

Canaccord Genuity will serve as the sole bookrunner, with Maxim Group as co-manager. The proceeds will be used for working capital and general corporate purposes.

Positive

• Successful pricing of public offering to raise $15 million in gross proceeds
• Additional potential capital through 45-day underwriter option for 1.875M shares
• Working capital enhancement to support operations

Negative

• Significant shareholder dilution through issuance of 12.5M new shares
• Offering price of $1.20 per share indicates relatively low valuation
• Additional dilution possible if underwriters exercise their option

Insights

Financial Analyst

Lucid Diagnostics' announcement of a $15 million public offering at $1.20 per share represents a significant 27% discount to the current share price of $1.65, signaling substantial dilution for existing shareholders.

The offering of 12.5 million shares (with potential for an additional 1.875 million) will significantly expand the company's outstanding share count. For context, at the current market cap of approximately $140.7 million and share price of $1.65, Lucid has roughly 85.3 million shares outstanding. This offering would increase the share count by 14.7% at minimum, potentially reaching 16.9% if underwriters exercise their full option.

The vague designation of proceeds for "working capital and general corporate purposes" rather than specific strategic initiatives raises questions about immediate capital needs. Typically, companies offer more specific allocations when raising capital for growth initiatives or strategic investments.

This financing approach suggests potential cash flow challenges, as companies generally prefer not to issue shares at significant discounts unless necessary. The substantial discount could reflect challenging market conditions for raising capital in the cancer diagnostics sector or concerns about the company's current financial position.

NEW YORK, April 9, 2025 /PRNewswire/ -- Lucid Diagnostics Inc. (Nasdaq: LUCD) ("Lucid" or the "Company"), a commercial-stage, cancer prevention medical diagnostics company, and subsidiary of PAVmed Inc. (Nasdaq: PAVM), today announced the pricing of its underwritten public offering of 12,500,000 shares of its common stock at a public offering price of $1.20 per share. In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 1,875,000 shares of common stock at the public offering price, less underwriting discounts and commissions.

The gross proceeds from the offering, before deducting underwriting discounts and commissions and other estimated offering expenses, are expected to be approximately $15 million, excluding any proceeds from the exercise of the underwriters' option to purchase additional shares. The Company intends to use the net proceeds from this offering for working capital and general corporate purposes.

The offering is expected to close on or about April 11, 2025, subject to customary closing conditions.

Canaccord Genuity LLC is acting as the sole bookrunner of the offering and Maxim Group LLC is acting as co-manager of the offering.

The offering is being made pursuant to a shelf registration statement on Form S-3 (File No. 333-268560) declared effective by the Securities and Exchange Commission on December 6, 2022. A prospectus supplement relating to the offering will be filed with the Securities and Exchange Commission, together with an accompanying base prospectus. The securities may be offered only by means of a written prospectus forming a part of the effective registration statement. Copies of the prospectus supplement relating to the offering, together with the accompanying base prospectus, may be obtained, when available, from the Securities and Exchange Commission's website at http://www.sec.gov, or from Canaccord Genuity LLC, Attention: Syndicate Department, One Post Office Square, Suite 3000, Boston, MA 02109, or by email at prospectus@cgf.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the shares of common stock. Lucid will not, and has been advised by the underwriters that they and their affiliates will not, sell any of the shares of common stock in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Lucid Diagnostics

Lucid Diagnostics Inc. is a commercial-stage, cancer prevention medical diagnostics company and subsidiary of PAVmed Inc. (Nasdaq: PAVM). Lucid is focused on the millions of patients with gastroesophageal reflux disease (GERD), also known as chronic heartburn, who are at risk of developing esophageal precancer and cancer. Lucid's EsoGuard^® Esophageal DNA Test, performed on samples collected in a brief, noninvasive office procedure with its EsoCheck^® Esophageal Cell Collection Device, represent the first and only commercially available tools designed with the goal of preventing cancer and cancer deaths through widespread, early detection of esophageal precancer in at-risk patients.

For more information about Lucid, please visit www.luciddx.com and for more information about its parent company PAVmed, please visit www.pavmed.com.

Forward-Looking Statements

This press release includes forward-looking statements that involve risk and uncertainties. Forward-looking statements are any statements that are not historical facts. Such forward-looking statements, which are based upon the current beliefs and expectations of Lucid Diagnostics' management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Risks and uncertainties that may cause such differences include, among other things, volatility in the price of Lucid Diagnostics' common stock; general economic and market conditions; the uncertainties inherent in research and development, including the cost and time required to advance Lucid Diagnostics' products to regulatory submission; whether regulatory authorities will be satisfied with the design of and results from Lucid Diagnostics' clinical and preclinical studies; whether and when Lucid Diagnostics' products are cleared by regulatory authorities; market acceptance of Lucid Diagnostics' products once cleared and commercialized; Lucid Diagnostics' ability to raise additional funding as needed; and other competitive developments. These factors are difficult or impossible to predict accurately and many of them are beyond Lucid Diagnostics' control. In addition, new risks and uncertainties may arise from time to time and are difficult to predict. For a further list and description of these and other important risks and uncertainties that may affect Lucid Diagnostics' future operations, see Part I, Item 1A, "Risk Factors," in Lucid Diagnostics' most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, as the same may be updated in Part II, Item 1A, "Risk Factors" in any Quarterly Report on Form 10-Q filed by Lucid Diagnostics after its most recent Annual Report.  Lucid Diagnostics disclaims any intention or obligation to publicly update or revise any forward-looking statement to reflect any change in its expectations or in events, conditions, or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements.

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SOURCE Lucid Diagnostics

FAQ

How much money will Lucid Diagnostics (LUCD) raise in its April 2025 public offering?

Lucid Diagnostics expects to raise approximately $15 million in gross proceeds from the offering of 12.5 million shares at $1.20 per share, before deducting underwriting costs and expenses.

What is the price per share for Lucid Diagnostics' (LUCD) April 2025 public offering?

The public offering price is set at $1.20 per share of common stock.

When will Lucid Diagnostics' (LUCD) April 2025 public offering close?

The offering is expected to close on or about April 11, 2025, subject to customary closing conditions.

How will Lucid Diagnostics (LUCD) use the proceeds from its April 2025 public offering?

The company intends to use the net proceeds for working capital and general corporate purposes.

What is the additional share purchase option granted to underwriters in LUCD's April 2025 offering?

Underwriters have a 45-day option to purchase up to an additional 1.875 million shares at the public offering price, less underwriting discounts and commissions.