bioAffinity Technologies raises $1.2 million in private placement

Published 13/08/2025, 16:02
bioAffinity Technologies raises $1.2 million in private placement

JERSEY CITY - bioAffinity Technologies, Inc. (NASDAQ:BIAF), a micro-cap biotechnology company with a market capitalization of $7.68 million and shares down 84% over the past year, has secured approximately $1.2 million in gross proceeds through a private placement and warrant inducement transaction, according to a press release statement issued Wednesday.

The biotechnology company, which focuses on developing noninvasive tests for early-stage cancer detection and achieved 78.4% revenue growth in the last twelve months, entered into securities purchase agreements with institutional and accredited investors for 990 shares of Series B Convertible Preferred Stock and warrants to purchase approximately 6.7 million shares of common stock. According to InvestingPro data, the company faces liquidity challenges with a current ratio of 0.55, indicating short-term obligations exceed liquid assets.

The preferred stock, valued at $1,000 per share, is initially convertible into about 4.3 million common shares at a conversion price of $0.23 per share. The private placement warrants will be exercisable at an initial price of $0.352 per share following stockholder approval and will expire five years after the original exercise date.

Additionally, the company entered a warrant exercise agreement with an existing accredited investor to exercise outstanding warrants to purchase 1.1 million shares of common stock, reducing the exercise prices from $1.50 and $1.25 to $0.23 per share. This agreement provides for the issuance of new warrants to purchase up to 1.43 million shares at $0.352 per share, generating immediate cash proceeds of approximately $253,000.

The transactions are expected to close on August 14, 2025, subject to customary closing conditions. bioAffinity Technologies plans to use the net proceeds for working capital and general corporate purposes. InvestingPro analysis suggests the stock is currently undervalued, with 12 additional exclusive insights available to subscribers, including detailed valuation metrics and growth forecasts.

WallachBeth Capital LLC is serving as the sole placement agent for the private placement and financial advisor for the warrant inducement.

The securities are being offered through a private placement exempt from registration requirements under Section 4(a)(2) of the Securities Act of 1933 and Regulation D. The company has agreed to file a registration statement with the SEC covering the resale of the underlying common stock within 15 days after closing.

In other recent news, bioAffinity Technologies, Inc. announced it has raised approximately $1.2 million through a private placement and warrant inducement transaction. The funds were secured through securities purchase agreements involving Series B Convertible Preferred Stock and warrants for common shares. Additionally, bioAffinity Technologies has strengthened its intellectual property portfolio with new patents. The Canadian Patent Office has allowed a patent for a method to detect lung disease, enhancing protection for the company’s CyPath® Lung diagnostic platform. In China, the company received a patent for its cancer therapy targeting specific receptors to kill cancer cells, expanding its international reach. The company also made a strategic leadership change by appointing Dr. Gordon Downie as the new Chief Medical Officer. Dr. Downie brings over 30 years of experience in pulmonary medicine and has held significant positions in the field. These developments reflect bioAffinity Technologies’ ongoing efforts to advance its diagnostic and therapeutic capabilities.

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