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 consists 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, exercisable following shareholder approval, have a five-year term and 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 private placement 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.
This capital infusion comes as VivoSim focuses on its core business: 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 new approach methodologies (NAM) models, which are gaining traction following the U.S. Food and Drug Administration (FDA) Roadmap to refine animal testing requirements in favor of non-animal NAM methods. The funding will likely support the company's efforts to accelerate adoption of its human tissue models, potentially positioning it for growth in the evolving regulatory landscape.
The participation of a single healthcare-focused institutional investor underscores confidence in VivoSim's technology and market potential. For more details on the offering, the full press release is available at https://ibn.fm/7Ov0B. Additional information about VivoSim Labs can be found on its website at https://vivosim.ai/.
