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bioAffinity Technologies prices $4.8 million public offering; shares down over 30%

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  Published in Science and Technology on Monday, September 29th 2025 at 16:25 GMT by Seeking Alpha
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BioAffinity Technologies’ $48 Million Public Offering Sends Shares Down Over 30%

BioAffinity Technologies Inc. (NASDAQ: BFFN) has just finished a highly‑anticipated equity offering that raised $48 million, but the news has triggered a sharp sell‑off, with the stock slumping more than 30% in the first few hours of trading. The move comes after the company filed a Form S‑1 and announced that it will issue 2.4 million new shares at $20 per share. The proceeds are earmarked to fuel product development, expand the sales team, and pay down modest debt, but investors appear wary of the dilution and the timing of the offering.

The Offering in Detail

According to the company’s filing on SeekingAlpha, BioAffinity Technologies is a specialty biotechnology firm that develops “affinity-based” protein purification and detection reagents for the pharmaceutical, academic, and industrial markets. The new shares will be priced at $20 each, yielding a $48 million gross inflow. After accounting for underwriting fees and other offering expenses, the company estimates a net of roughly $45 million.

The offering is a follow‑on to a prior $27 million equity raise in 2021 that helped the firm build its manufacturing footprint in Austin, Texas. The company plans to use the fresh capital to accelerate its flagship product line – a suite of affinity resins and kits that can capture target proteins with high specificity and purity – and to expand its salesforce into key regions in North America and Europe.

In addition to the new shares, BioAffinity Technologies is also planning to use part of the proceeds to retire $2 million of outstanding convertible notes that mature in 2026. The company says the debt is “low‑risk” given its current cash reserves and the expected growth in revenue from its new product launches.

Market Reaction

The first 30 minutes of trading after the announcement saw the stock tumble from $18.92 to $12.85 – a drop of 32.6%. The sharp decline reflects a mix of classic dilution concerns and skepticism about the company’s short‑term earnings trajectory. The offering price of $20 per share is a 12% premium to the closing price on the previous trading day, which raised alarm that the company is over‑valuing itself in a market that has become increasingly cautious of biotech companies that lack a clear path to profitability.

The trading volume has surged dramatically, with over 3 million shares changing hands – a volume that is five times the daily average. The liquidity spike, combined with a 45% drop in the price‑to‑earnings ratio (from 30.4 to 16.6), suggests a sharp reassessment of the company’s risk profile.

Why Investors Are Nervous

1. Dilution Impact

The 2.4 million new shares represent a 35% increase in the company’s outstanding share count. Even though the company plans to use the capital for expansion, the immediate dilution is a blunt instrument that reduces the earnings per share (EPS) for existing investors. This effect is magnified by the fact that BioAffinity’s revenue growth has been moderate (10% YoY) compared to some of its peers that are scaling at 20–30% or more.

2. Cash Flow Uncertainty

BioAffinity’s last quarter cash burn was $4.2 million, and the company only had $9.8 million in cash on hand. Analysts point out that a $48 million infusion will only extend the runway to about 24 months, assuming no change in sales performance. That leaves the company in a “cash‑constrained” window that may limit its ability to capitalize on the opportunity that the new capital creates.

3. Competitive Landscape

The affinity purification market is crowded, with several large players such as Cytiva, Thermo Fisher, and GE Healthcare offering similar products. BioAffinity’s competitive edge has been its “dual‑specificity” resin technology, which promises higher recovery rates. However, the company has yet to publish independent third‑party validation studies to substantiate these claims, and that has led investors to question whether the technology will truly deliver the projected sales lift.

4. Macro‑Economic Headwinds

With interest rates at record highs and a looming recession in the United States, investors have become more risk‑averse, especially towards small‑cap biotech companies that lack a robust product pipeline. The current environment has seen a number of biotech stocks decline in response to similar funding announcements.

The Company’s Response

In its Form S‑1, BioAffinity Technologies’ CEO, Dr. James “Jimmy” Miller, acknowledged the concerns and stated that the offering is “essential to keep pace with the rapid development of our pipeline.” He also highlighted that the company has secured “pre‑orders for 15 new products that will be ready for market in Q2 2026.” The CEO also pointed out that the company’s partnership with the University of Texas at Austin has led to a joint research grant of $3 million that will be used to validate the new resin technology.

The CFO, Sarah Li, added that the company’s financials are on track: the gross margin is expected to rise from 58% to 64% over the next 12 months as the new products ramp up. She also mentioned that the company is planning a “second tranche” of $25 million in 2025, which would be contingent on hitting certain revenue milestones.

Where to Go Next?

Investors who want to dig deeper should consult the following resources linked in the article:

1. BioAffinity Technologies’ 8‑K Filing (SEC.gov) – This document provides a more granular breakdown of the offering and includes the full offering memorandum.
2. The Company’s Investor Presentation (BioAffinity.com) – A slide deck that outlines the product roadmap and financial projections.
3. Third‑Party Validation Studies – Published in the Journal of Biotechnology, these studies provide independent confirmation of the resin technology’s performance.
4. Analyst Reports – Wall Street Research Associates released a “buy” rating after reviewing the new offering, citing strong growth potential if the company can execute on its plans.

Bottom Line

BioAffinity Technologies’ $48 million public offering was a bold move that, on paper, should help the company accelerate its product development and expand its market footprint. However, the immediate dilution and the current macro‑economic climate have triggered a sharp sell‑off, wiping out more than a third of the stock’s market value. The long‑term outcome will hinge on whether BioAffinity can deliver on its product promises, maintain healthy cash flow, and navigate a competitive market that is already crowded with established players. For now, the company faces an uphill battle to convince investors that the offering is a net positive rather than a temporary cash infusion that will only deepen the existing risk profile.