VivoSim Labs, Inc. (NASDAQ: VIVS) announced that it has entered into a securities purchase agreement with a single healthcare-focused institutional investor to raise approximately $4 million in gross proceeds through a private placement. The offering consists of 4,705,883 shares of common stock, or common stock equivalents, and accompanying warrants priced at a combined $0.85 per share. The warrants are exercisable following shareholder approval and expire five years after their initial exercise date, carrying an exercise price of $0.85 per share.
In addition, subject to shareholder approval, VivoSim agreed to amend certain existing May 2024 warrants by reducing their exercise price from $9.60 to $0.85 per share. The offering is expected to close on or about July 17, 2026, subject to customary closing conditions. VivoSim intends to use the net proceeds for working capital and general corporate purposes.
The securities were offered in a private placement exempt from Securities Act registration requirements, and the company has agreed to file a resale registration statement with the U.S. Securities and Exchange Commission (SEC) covering the shares and warrant shares issued in the transaction. This move is significant for VivoSim as it provides additional capital to advance its operations in the pharmaceutical and biotechnology services sector.
VivoSim Labs focuses on providing testing of drugs and drug candidates using three-dimensional (3D) human tissue models of liver and intestine. The company offers partners liver and intestinal toxicology insights using its new approach methodologies (NAM) models. The company anticipates accelerated adoption of human tissue models following the U.S. Food and Drug Administration (FDA) Roadmap to refine animal testing requirements in favor of these non-animal NAM methods.
This capital infusion could help VivoSim expand its services and potentially accelerate the adoption of its NAM models, which align with regulatory trends moving away from animal testing. For the pharmaceutical industry, this could mean more efficient and ethical drug testing processes. The company operates from San Diego, CA, and further information is available on its website at https://vivosim.ai/.
The full press release can be viewed at https://ibn.fm/7Ov0B. This news was distributed by MissionIR, a specialized communications platform that assists IR firms with syndicated content to enhance visibility for companies within the investment community.
