VivoSim Labs, Inc. (NASDAQ: VIVS) announced 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 includes 4,705,883 shares of common stock, or common stock equivalents, and accompanying warrants priced at a combined $0.85 per share. The warrants, which are exercisable following shareholder approval and expire five years after their initial exercise date, carry an exercise price of $0.85 per share. The company also 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 said it 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. 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 is available at https://vivosim.ai/.
This private placement is significant for VivoSim as it provides additional capital to support its operations and advance its NAM-based testing services, which align with the FDA's initiative to reduce reliance on animal testing. The involvement of a healthcare-focused institutional investor signals confidence in VivoSim's technology and market potential. The amendment of existing warrants at a reduced exercise price may also incentivize further investment and strengthen the company's financial position.
