bioAffinity announces $3.25 million securities offering

Published 06/05/2025, 14:44
bioAffinity announces $3.25 million securities offering

SAN ANTONIO - bioAffinity Technologies, Inc. (NASDAQ: BIAF, BIAFW), a biotech company specializing in noninvasive early-stage cancer detection tests, has initiated a securities offering expected to raise $3.25 million in gross proceeds, before deductions for fees and other expenses. According to InvestingPro data, the company’s current market capitalization stands at $6.8 million, with a concerning current ratio of 0.87, indicating potential liquidity challenges. The offering includes over 10 million shares of common stock or pre-funded warrants, along with warrants to purchase up to an additional 15 million shares, priced at $0.32 each.

The closing of this transaction is slated for tomorrow, subject to standard closing conditions, with WallachBeth Capital, LLC serving as the exclusive placement agent. The timing is crucial as InvestingPro analysis shows the company is quickly burning through cash, with negative free cash flow of $7.34 million in the last twelve months.

bioAffinity’s proprietary product, CyPath® Lung, leverages flow cytometry and AI for early lung cancer detection, showing high sensitivity and accuracy in clinical studies. The test is currently marketed as a Laboratory Developed Test by Precision Pathology Laboratory Services, a subsidiary of bioAffinity Technologies.

This offering is made under a previously filed and effective SEC registration statement. The final prospectus related to the offering will be available on the SEC’s website.

The company cautions that this press release contains forward-looking statements, such as the expected closing date of the offering, and that actual results could differ materially due to various risks and uncertainties.

This news is based on a press release statement from bioAffinity Technologies, Inc.

In other recent news, bioAffinity Technologies reported a significant 270% increase in revenue for the year ending December 31, 2024, reaching $9.4 million. This growth was driven by the demand for the CyPath® Lung test, which saw a 1,400% increase in orders following its inclusion in the Centers for Medicare and Medicaid Services’ clinical laboratory fee schedule. Despite this revenue growth, the company anticipates a reduction in total revenue for 2025 due to the discontinuation of certain unprofitable pathology services. In a strategic move to enhance financial performance, bioAffinity Technologies announced cost-cutting measures expected to save approximately $4 million annually, focusing resources on expanding CyPath® Lung sales. The company plans to start enrollment for an FDA pivotal trial for CyPath® Lung and is developing additional diagnostics for diseases like COPD and asthma. Additionally, bioAffinity Technologies has been notified by The Nasdaq Stock Market LLC regarding non-compliance with the minimum bid price requirement, though it has 180 days to regain compliance. The company’s leadership team was strengthened with new appointments, including a Chief Financial Officer and a Chief Science Officer. Furthermore, bioAffinity Technologies has made improvements to its CyPath® Lung test, reducing sample processing costs and acquisition time, which could lead to increased throughput and cost savings.

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