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. The private placement involves the sale of 4,705,883 shares of common stock, or common stock equivalents, along with accompanying warrants, each unit priced at $0.85. The warrants are exercisable following shareholder approval and expire five years after their initial exercise date, with 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, 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. For more details, the full press release is available at https://ibn.fm/7Ov0B.
This capital infusion is significant for VivoSim Labs, 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 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 can be found at https://vivosim.ai/.
The private placement reflects continued investor interest in companies advancing alternatives to animal testing, which could have broad implications for drug development and regulatory processes. By securing additional funding, VivoSim is positioned to further its research and development efforts, potentially bringing its 3D tissue models closer to widespread adoption in the pharmaceutical industry.
