Fundraising Milestone: bioAffinity Technologies Secures $1.2M
bioAffinity Technologies Completes Successful Capital Raise
bioAffinity Technologies, Inc. has made a significant step forward by securing approximately $1.2 million. This achievement comes through a private placement of shares and a concurrent warrant inducement transaction. The firm, recognized for its focus on noninvasive tests for early-stage cancer detection, has partnered with WallachBeth Capital LLC, which is acting as the sole placement agent.
Details of the Capital Raise
In this strategic move, the biotechnology company entered into agreements with various institutional and accredited investors. The deal includes the sale of 990 shares of Series B Convertible Preferred Stock, alongside warrants enabling the purchase of around 6.7 million shares of common stock. The Preferred Stock has been assigned a stated value of $1,000 per share and can be converted into approximately 4.3 million shares of common stock at a price of $0.23 each.
Warrant Inducement Transaction
Additionally, the company has negotiated a warrant exercise agreement with an existing investor. This agreement allows for the exercise of existing warrants totaling 1.1 million shares, significantly dropping the exercise prices to $0.23 per share from their previous rates of up to $1.50. In return for exercising these warrants, the investor will receive new unregistered warrants for up to 1.43 million shares, which will have an exercise price of $0.352 per share.
Usage of Proceeds
The anticipated proceeds will be utilized for working capital and general corporate purposes, paving the way for further advancements in the company's operational strategies. This capital raise will help bioAffinity Technologies strengthen its commitment to developing innovative cancer detection methods, enhancing healthcare delivery.
Future Plans and Regulatory Aspects
The closing of both the private placement and the warrant inducement is expected to take place soon, contingent on meeting standard closing conditions. Following the close, the company intends to file a registration statement with the SEC to facilitate the resale of the shares derived from the preferred stock and warrants within 15 days.
The securities involved in this transaction will be offered under the exemption outlined in Section 4(a)(2) of the Securities Act of 1933 and will not be registered under the Act, preventing their reoffering or resale in jurisdictions where such actions would be illegal.
About WallachBeth Capital LLC
WallachBeth Capital LLC is known for its comprehensive range of capital markets and investment banking services. Catering to the healthcare sector, the firm links corporate clients with influential institutions, assisting both issuers and investors in achieving their financial aspirations. With a wealth of experience in various transactions, including initial public offerings and private placements, WallachBeth is committed to supporting innovative companies in their growth journeys.
Frequently Asked Questions
What is the purpose of the capital raise?
The funds will be used for working capital and general corporate purposes, helping advance bioAffinity Technologies' innovative cancer detection methods.
Who is handling the capital raise?
WallachBeth Capital LLC is serving as the sole placement agent for the private placement and financial advisor for the warrant inducement.
What does the warrant inducement entail?
The warrant inducement allows an investor to exercise existing warrants at reduced prices in exchange for new unregistered warrants for additional company shares.
When is the expected closing date?
The closing of the private placement and warrant inducement is expected to happen soon, subject to typical closing conditions.
What regulatory exemptions apply to the securities offered?
The securities are being offered in a transaction exempt from registration under Section 4(a)(2) of the Securities Act of 1933 and relevant state securities laws.
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