bioAffinity Technologies Raises 4 Million Dollars in Direct Offering
bioAffinity Technologies, Inc. (NASDAQ:BIAF) has secured approximately $4 million in a registered direct offering and concurrent private placement of warrants. The company sold 116,545 common shares at $6.122 per share and 536,836 pre-funded warrants at $6.115 to an institutional investor. Additionally, the deal includes unregistered warrants to buy 980,072 shares at $6.122, which will be exercisable for five years once stockholders approve them.
The capital raise provides the company with fresh funds for working capital and general corporate purposes. However, the market reacted negatively to the dilution and the pricing of the deal. Shares of the company slid 16.22% on Friday to close at $4.725. WallachBeth Capital acted as the placement agent, earning a 7.5% cash fee, expense reimbursements, and warrants for their services.
Investors will likely watch for the upcoming shareholder vote required to approve the execution of the unregistered warrants. Additionally, the company has agreed to register the resale of the newly issued shares and warrant shares to provide liquidity for the institutional investor, which could introduce more shares to the public market in the future.
Key points
- bioAffinity Technologies raised approximately $4 million through a registered direct offering and private placement.
- The transaction includes 116,545 common shares and 536,836 pre-funded warrants, plus additional unregistered warrants.
- Net proceeds from the institutional financing are earmarked for working capital and general corporate purposes.
- Shares of BIAF declined 16.22% to $4.725 following the announcement of the capital raise.
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How we writeDisclaimerQuestions and answers
How much money did bioAffinity Technologies raise?
The company raised approximately $4 million through a registered direct offering and concurrent private placement of warrants with an institutional investor.
What will bioAffinity Technologies use the funding for?
The company plans to use the net proceeds from the offering to support its working capital needs and for general corporate purposes.
Why did bioAffinity Technologies stock drop?
The company's stock fell 16.22% to $4.725 after it announced the dilutive stock and warrant offering to an institutional investor.