VivoSim Labs, Inc. (NASDAQ: VIVS) 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 transaction involves the sale 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, with an exercise price of $0.85 per share. Additionally, subject to shareholder approval, the company 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 covering the shares and warrant shares issued in the transaction. For more details, the full press release is available at https://ibn.fm/7Ov0B.
VivoSim Labs is a pharmaceutical and biotechnology services company focused on providing testing of drugs and drug candidates in 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. VivoSim 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. The company operates from San Diego, CA, and more information can be found on its website at https://vivosim.ai/.
The private placement underscores investor confidence in VivoSim's technology and business strategy, particularly as regulatory trends increasingly support alternatives to animal testing. The reduction in exercise price for existing warrants may also provide additional incentive for warrant holders to convert, potentially strengthening the company's capital position. The funds raised are expected to support ongoing operations and advance the company's mission to provide innovative drug testing solutions using human tissue models.
