bioAffinity Technologies Secures $1.4 Million in Warrant Inducement

San Antonio, Texas – bioAffinity Technologies, Inc. announced on February 25, 2025, that it has entered into a warrant inducement agreement with holders of its outstanding warrants issued in two prior private placement offerings. Under the terms of the agreement, existing warrant holders agreed to immediately exercise their warrants for cash while receiving additional unregistered warrants in a private placement.

Specifically, holders of warrants issued in the October 21, 2024 and August 5, 2024 private placements agreed to exercise their warrants at a reduced exercise price of $0.58 per share. In connection with this action, bioAffinity received aggregate gross proceeds of approximately $1.4 million before advisory fees and related expenses. Pursuant to the inducement, the company will issue new unregistered Common Stock Purchase Warrants to the warrant holders to purchase up to an aggregate of approximately 2.93 million shares—equivalent to 120% of the shares acquired through the immediate exercise of the existing warrants.

The newly issued warrants carry an exercise price of $0.85 per share and will become exercisable following the attainment of stockholder approval, thereafter remaining exercisable for five years. An important feature of these warrants is a provision allowing for cashless exercise if a required registration statement covering the new warrant shares is not effective or available beyond a set period after both the Closing Date and the stockholder approval date.

WallachBeth Capital, LLC served as the financial advisor for the transaction and was compensated on a reasonable best efforts basis. In addition to receiving a cash fee calculated as 8.0% of the gross proceeds, the firm also received warrants to purchase a portion of the company’s common stock as additional compensation. The advisor’s warrants have terms substantially similar to the new warrants, including an exercise price of $0.85 per share and a five-year term from the date of issuance.

The transaction, consummated on February 26, 2025, was designed to accelerate the exercise of outstanding warrants while providing additional equity incentives to investors. The company noted that net proceeds from the transactions are expected to be used for working capital and general corporate purposes. Registration statements for the shares underlying the adjusted exercise of the existing warrants have been declared effective by the SEC in previous filings.

As bioAffinity Technologies continues its efforts to support noninvasive diagnostics for early-stage lung cancer and other diseases, the warrant inducement agreement provides an alternative financing structure to bolster cash resources while further aligning investor interests.

Forward-looking statements in connection with the transactions are subject to risks and uncertainties, including those detailed in the company’s filings with the Securities and Exchange Commission. Investors are cautioned not to rely unduly on these statements, which speak only as of the date hereof.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read bioAffinity Technologies’s 8K filing here.

bioAffinity Technologies Company Profile

bioAffinity Technologies, Inc, a biotechnology company, engages in developing non-invasive diagnostic tests and targeted cancer therapeutics. The company offers CyPath lung, a diagnostic test, for early detection of lung cancer. It also researches targeted therapies to treat lung cancer and other diseases of the lung at the cellular level.