Feb. 4 at 2:57 PM
$PAVM &
$LUCD A prompt. It is UGLY
Role: Act as a Series 7/63 Financial Advisor and a Distressed Debt Workout Specialist.Objective: Analyze the PAVmed (PAVM) February 3, 2026, 8-K filing and the Lucid Diagnostics (LUCD) Ninth Amendment to the Management Services Agreement (MSA).Core Assumption: The CEO and CFO are motivated by income preservation rather than equity protection, given their negligible personal shareholdings. Analysis Task 1: The Entrenchment Mechanics Outline how the current financing terms prioritize management’s salary over common shareholder equity: The "Key Man" Poison Pill: Explain how the 2026 Note’s "Event of Default" trigger upon the removal of the CEO/CFO weaponizes the debt against any activist shareholder or board-led termination. The MSA Liquidity Siphon: Detail the Ninth Amendment to the MSA which mandates a
$1.05M/month cash payment from LUCD to PAVM, ensuring a pipeline of cash for payroll even as the subsidiary approaches a May 22, 2026, covenant breach.