bioAffinity Technologies Announces Closing of Registered Direct Offering, Concurrent Private Placement and Warrant Inducement for Aggregate Gross Proceeds of $1.75 Million

Rhea-AI Summary

bioAffinity Technologies (Nasdaq: BIAF, BIAFW) has announced the closing of a registered direct offering and concurrent private placement, along with a warrant inducement, for total gross proceeds of $1.75 million. The company raised approximately $1,302,083 through the exercise of existing warrants by three accredited investors at a reduced price of $1.25 per share. These investors received new unregistered warrants to purchase additional shares. Additionally, bioAffinity closed a securities purchase agreement with an institutional investor, raising about $450,000 through the sale of common stock and warrants. WallachBeth Capital acted as the sole placement agent and financial advisor for these transactions.

Positive

• Raised $1.75 million in gross proceeds through various offerings
• Successful warrant exercise by existing investors at $1.25 per share
• Additional capital raised through registered direct offering and private placement
• Potential for future funding through new warrant exercises

Negative

• Dilution of existing shareholders due to new share issuance
• Reduction of existing warrant exercise price from $1.64 to $1.25
• Future dilution possible if new warrants are exercised

Financial Analyst

bioAffinity Technologies' recent financial moves reveal a strategic effort to raise capital and improve its financial position. The company has secured $1.75 million in gross proceeds through a combination of warrant exercises, a registered direct offering and a private placement. This capital injection could provide much-needed funds for operations or potential expansion.

However, the reduced warrant exercise price from $1.64 to $1.25 per share suggests a potential dilution for existing shareholders. The issuance of new warrants at $1.50 per share also indicates a complex financial structure that may impact future equity value. Investors should closely monitor how the company utilizes these funds and its impact on the stock's performance in the coming months.

Market Research Analyst

The market's reaction to bioAffinity's financing moves will be important to watch. The company's ability to secure funding in the current economic climate is noteworthy, but the terms of the deal suggest potential challenges. The warrant inducement and reduced exercise price could be interpreted as a sign that the company is struggling to attract investment at more favorable terms.

Moreover, the need for stockholder approval for the new warrants adds an element of uncertainty. Investors should pay attention to the upcoming stockholder meeting and any potential impact on the stock price. The market's perception of this deal could significantly influence bioAffinity's short-term stock performance and its ability to raise capital in the future.

SAN ANTONIO--(BUSINESS WIRE)-- bioAffinity Technologies, Inc. (Nasdaq: BIAF, BIAFW) announced today that pursuant to warrant exercise agreements dated Aug. 2, 2024, three existing accredited investors have exercised outstanding warrants to purchase an aggregate of 1,041,667 of the Company’s shares of common stock (“Existing Warrants”) at an exercise price that was reduced from $1.64 to $1.25 per share for gross cash proceeds of approximately $1,302,083.

As part of the transaction, the exercising holders received in a private placement new unregistered warrants (“New Warrants”) to purchase up to an aggregate of 1,302,083 shares of common stock (equal to 125% of the shares of common stock issued in connection with the exercise of the Existing Warrants). The New Warrants have an exercise price of $1.50 per share and are initially exercisable on the date that stockholder approval of the exercise of the warrants is obtained and will expire five years from the date of such approval. In connection with the exercise of the Existing Warrants, the Company reduced the exercise price of the Existing Warrants from $1.64 to $1.25 per share.

The Company also announced today it has closed the previously announced securities purchase agreement with an institutional investor for the purchase and sale of 360,000 shares of common stock in a registered direct offering and, in a concurrent private placement, common warrants (“Private Warrants”) to purchase up to 450,000 shares of common stock (together with the registered direct offering) at a combined purchase price of $1.25. The Private Warrants have an exercise price of $1.50 per share, are initially exercisable on the date that stockholder approval of the exercise of the warrants is obtained and will expire five years from the date of such approval.

The gross proceeds from the offering are expected to be approximately $450,000, excluding any proceeds that may be received upon the exercise of the Private Warrants and before deducting placement agent fees and other offering expenses payable by the Company.

WallachBeth Capital acted as sole placement agent for the registered direct offering and financial advisor for the warrant inducement transaction.

The common stock was issued in a registered direct offering pursuant to an effective shelf registration statement on Form S-3 (File No. 333-275608) previously filed with the U.S. Securities and Exchange Commission (“SEC”), under the Securities Act of 1933, as amended (the “Securities Act”), and declared effective by the SEC on Nov. 27, 2023. The Private Warrants to be issued in the concurrent private placement and the shares issuable upon exercise of such warrants were offered pursuant to an exemption from the registration requirements of the Securities Act under Section 4(a)(2) thereof and Regulation D promulgated thereunder and have not been registered under the Securities Act or applicable state securities laws. A prospectus supplement describing the terms of the proposed registered direct offering will be filed with the SEC and available on the SEC’s website located at http://www.sec.gov. Electronic copies of the prospectus supplements may be obtained, when available, from WallachBeth Capital, LLC, via email at cap-mkts@wallachbeth.com, by calling +1-646-237-8585, or by standard mail at WallachBeth Capital LLC, Attn: Capital Markets, 185 Hudson St., Suite 1410, Jersey City, NJ 07311, USA.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

About CyPath® Lung

CyPath® Lung uses advanced flow cytometry and artificial intelligence (AI) to identify cell populations in patient sputum that indicate malignancy. Automated data analysis helps determine if cancer is present or if the patient is cancer-free. CyPath® Lung incorporates a fluorescent porphyrin, TCPP, that is preferentially taken up by cancer and cancer-related cells. Clinical study results demonstrated that CyPath® Lung had 92% sensitivity, 87% specificity and 88% accuracy in detecting lung cancer in patients at high risk for the disease who had small lung nodules less than 20 millimeters. Diagnosing and treating early-stage cancer can improve outcomes and increase patient survival.

About bioAffinity Technologies, Inc.

bioAffinity Technologies, Inc. addresses the need for noninvasive diagnosis of early-stage cancer and diseases of the lung and broad-spectrum cancer treatments. The Company’s first product, CyPath® Lung, is a noninvasive test that has shown high sensitivity, specificity and accuracy for the detection of early-stage lung cancer. CyPath® Lung is marketed as a Laboratory Developed Test (LDT) by Precision Pathology Laboratory Services, a subsidiary of bioAffinity Technologies. For more information, visit www.bioaffinitytech.com and follow us on LinkedIn, Facebook and X.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding the anticipated exercise of warrants and the anticipated gross proceeds from the Company’s offering of securities. Forward-looking statements can be identified by words such as “believes,” “expects,” “estimates,” “intends,” “may,” “plans,” “will” and similar expressions, or the negative of these words. Such forward-looking statements are based on facts and conditions as they exist at the time such statements are made and predictions as to future facts and conditions. Readers of this press release are cautioned not to place undue reliance on any forward-looking statements. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to risks and uncertainties included under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed with the SEC from time to time. The Company does not undertake any obligation to update any forward-looking statement relating to matters discussed in this press release, except as may be required by applicable securities laws.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240805453685/en/

bioAffinity Technologies

Julie Anne Overton

Director of Communications

jao@bioaffinitytech.com

Investor Relations

Dave Gentry

RedChip Companies Inc.

1-800-RED-CHIP (733-2447) or 407-491-4498

BIAF@redchip.com

Source: bioAffinity Technologies, Inc.

FAQ

How much did bioAffinity Technologies (BIAF) raise in their recent offerings?

bioAffinity Technologies (BIAF) raised a total of $1.75 million in gross proceeds through a combination of warrant exercises, a registered direct offering, and a concurrent private placement.

What was the price per share for the warrant exercise in bioAffinity Technologies' (BIAF) recent transaction?

The price per share for the warrant exercise was reduced from $1.64 to $1.25 in bioAffinity Technologies' (BIAF) recent transaction.

Who acted as the placement agent for bioAffinity Technologies' (BIAF) registered direct offering?

WallachBeth Capital acted as the sole placement agent for bioAffinity Technologies' (BIAF) registered direct offering and as financial advisor for the warrant inducement transaction.

What is the exercise price of the new warrants issued by bioAffinity Technologies (BIAF)?

The new warrants issued by bioAffinity Technologies (BIAF) have an exercise price of $1.50 per share.