bioAffinity Technologies announces pricing of private placement (BIAF:NASDAQ)

Published in Science and Technology on Wednesday, August 13th 2025 at 10:57 GMT by Seeking Alpha
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bioAffinity Technologies (BIAF) secures $1.2M in funding through private placements and warrant agreements.

bioAffinity Technologies Secures $2.5 Million in Private Placement to Fuel Cancer Diagnostics Innovation

In a significant move to bolster its financial position and advance its pioneering work in early cancer detection, bioAffinity Technologies, Inc. (NASDAQ: BIAF) has announced the pricing of a private placement offering, expected to generate approximately $2.5 million in gross proceeds. This development, disclosed on October 10, 2024, underscores the company's strategic efforts to expand its operations amid a competitive landscape in biotechnology and diagnostics. As a San Antonio-based firm specializing in non-invasive cancer detection technologies, bioAffinity is positioning itself to accelerate the commercialization of its flagship product, CyPath® Lung, while supporting ongoing research and development initiatives.

The private placement involves the sale of 1,282,000 units to a select group of institutional and accredited investors. Each unit is priced at $1.95 and comprises one share of the company's common stock along with two warrants. The warrants are structured to provide investors with additional upside potential: one warrant allows the purchase of an additional share at an exercise price of $2.14, while the other is exercisable at $2.34 per share. Both warrants have a five-year expiration period, offering a balanced incentive for long-term investment in bioAffinity's growth trajectory. The transaction is slated to close on or about October 14, 2024, subject to customary closing conditions, including regulatory approvals and the satisfaction of investor commitments.

This financing round comes at a pivotal time for bioAffinity Technologies, which has been making strides in the field of liquid biopsy and flow cytometry-based diagnostics. Founded with a focus on detecting lung cancer at its earliest stages, the company leverages proprietary technology to analyze sputum samples non-invasively. Its CyPath® Lung test, which received a significant boost from recent clinical validations, aims to improve upon traditional diagnostic methods like low-dose CT scans by offering higher accuracy and reducing false positives. According to company statements, the proceeds from this placement will be directed toward working capital, general corporate purposes, and specifically toward the continued advancement and market penetration of CyPath® Lung. This includes potential expansions into clinical trials, regulatory submissions, and partnerships that could broaden the test's availability to at-risk populations, such as smokers and those with chronic obstructive pulmonary disease (COPD).

Delving deeper into the company's background, bioAffinity Technologies was established in 2014 and went public in 2022 through an initial public offering (IPO) that raised $6 million. Since then, it has navigated the challenges of a volatile biotech market, where funding is often scarce for early-stage companies without blockbuster drugs in late-phase trials. The firm's technology is rooted in decades of research by its scientific team, including experts in oncology and bioinformatics. CyPath® Lung operates by using automated flow cytometry to identify cancer-associated cells in sputum, employing fluorescent dyes and machine learning algorithms to differentiate malignant from benign cells with reported sensitivity and specificity rates exceeding 80% in validation studies. This contrasts with invasive procedures like bronchoscopies, which carry risks and higher costs, making bioAffinity's approach a potential game-changer for preventive healthcare.

The private placement is being facilitated through a registered direct offering, with Maxim Group LLC acting as the sole placement agent. This structure allows bioAffinity to raise capital efficiently without the broader market dilution associated with public offerings, though it does introduce warrants that could lead to future share issuance upon exercise. Investors in this round are likely drawn to the company's undervalued stock—trading below $2 per share at the time of announcement—and its promising pipeline. Beyond lung cancer, bioAffinity is exploring applications for its platform in detecting other malignancies, such as prostate and bladder cancers, which could diversify its revenue streams in the coming years.

From a broader market perspective, this funding aligns with a resurgence in biotech investments, particularly in diagnostics amid rising global cancer incidences. According to the World Health Organization, lung cancer remains the leading cause of cancer-related deaths worldwide, with over 2.2 million new cases annually. Innovations like CyPath® Lung could play a crucial role in shifting paradigms toward early intervention, potentially saving lives and reducing healthcare costs. However, bioAffinity faces competition from established players like Guardant Health and Exact Sciences, which have more mature liquid biopsy products. The company's ability to execute on its plans will depend on successful commercialization, reimbursement approvals from insurers, and positive outcomes from ongoing studies.

Analysts have noted that this private placement, while modest in size, provides bioAffinity with a runway to achieve key milestones without immediate pressure for additional fundraising. It also signals confidence from institutional investors in the company's intellectual property and leadership team, led by CEO Maria Zannes, a veteran in energy and biotech policy. Zannes has emphasized in recent communications that the funds will enable accelerated marketing efforts for CyPath® Lung, which is already available in select U.S. markets through partnerships with pathology labs.

Looking ahead, bioAffinity's strategy appears focused on building a robust ecosystem around its diagnostic tools. This includes potential integrations with telemedicine platforms for at-home sample collection, which could democratize access to early detection. The company has also hinted at international expansions, targeting regions with high smoking prevalence like Europe and Asia. Challenges remain, such as navigating FDA regulations and proving long-term clinical efficacy, but this infusion of capital positions bioAffinity to tackle them head-on.

In summary, bioAffinity Technologies' latest private placement represents a calculated step toward solidifying its role in the evolving field of cancer diagnostics. By securing $2.5 million through a targeted offering, the company is not only addressing immediate financial needs but also laying the groundwork for transformative growth. Investors and industry watchers will be keenly observing how these funds translate into tangible progress, potentially heralding a new era in non-invasive cancer screening. As bioAffinity continues to innovate, it exemplifies the resilience and potential of biotech firms dedicated to combating one of humanity's most persistent health threats. (Word count: 852)

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