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, along with accompanying warrants, at a combined price of $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 offering is expected to close on or about July 17, 2026, pending 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 raise is a significant step for VivoSim as it continues to develop its new approach methodologies (NAM) for drug testing, which utilize three-dimensional human tissue models of the liver and intestine, potentially reducing reliance on animal testing as outlined in the FDA's recent roadmap.
VivoSim Labs is a pharmaceutical and biotechnology services company focused on providing testing of drugs and drug candidates in 3D human tissue models. The company offers partners liver and intestinal toxicology insights using its NAM models, and anticipates accelerated adoption following the FDA's push to refine animal testing requirements. The private placement underscores investor confidence in VivoSim's technology and its potential to transform drug development. For more details, the full press release is available at https://ibn.fm/7Ov0B.
This funding will enable VivoSim to advance its NAM platform, which aims to provide more accurate and ethical drug testing alternatives. The company's focus on liver and intestinal toxicology addresses critical needs in preclinical drug development, where traditional animal models often fail to predict human responses. By leveraging human tissue models, VivoSim hopes to improve the success rate of drug candidates and reduce costs. The $4 million private placement, led by a healthcare-focused institutional investor, signals strong market interest in these innovative approaches. As VivoSim continues to expand its operations, this capital infusion will support its mission to refine drug testing and align with evolving regulatory standards.
