VivoSim Labs, Inc. (NASDAQ: VIVS) has entered into a securities purchase agreement 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, along with accompanying warrants at a combined price of $0.85 per share. The warrants, exercisable following shareholder approval and expiring five years after the initial exercise date, have an exercise price of $0.85 per share. Additionally, the company agreed, subject to shareholder approval, 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 Labs intends to use the net proceeds for working capital and general corporate purposes, according to the press release. 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.
This capital infusion is significant for VivoSim Labs as it continues to develop its new approach methodologies (NAM) models for drug testing. The company focuses on providing testing of drugs and drug candidates in three-dimensional human tissue models of liver and intestine, offering partners insights into liver and intestinal toxicology. The FDA's roadmap to refine animal testing requirements in favor of non-animal NAM methods is expected to accelerate adoption of these human tissue models. VivoSim Labs operates from San Diego, CA, and more information is available on the company's website at https://vivosim.ai/.
The private placement with a single healthcare-focused institutional investor underscores confidence in VivoSim's technology and market potential. The amendment of existing warrants may also signal alignment of interests between the company and its investors. For further details, the full press release can be accessed at https://ibn.fm/7Ov0B.
