VivoSim Labs Inc.
(NASDAQ:VIVS) stock fell more than 26% on Thursday after the biotechnology company announced a private placement priced at 85 cents per share, raising investor concerns about potential shareholder dilution.
Private Placement Sparks Dilution Concerns VivoSim Labs entered into a securities purchase agreement with a healthcare-focused institutional investor to sell 4.71 million shares (or equivalent securities) and accompanying warrants at a combined effective price of $0.85 per share.
The company raised approximately $4.0 million in gross proceeds before fees and expenses.
The warrants, exercisable at $0.85 per share upon shareholder approval, will remain valid for five years.
