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. The private placement 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, expire five years after their initial exercise date and carry 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 as it positions the company to advance its focus on providing testing of drugs and drug candidates in three-dimensional human tissue models of liver and intestine. The company’s new approach methodologies (NAM) models offer partners liver and intestinal toxicology insights, and the company anticipates accelerated adoption following the U.S. Food and Drug Administration’s Roadmap to refine animal testing requirements in favor of non-animal NAM methods. VivoSim Labs operates from San Diego, CA, and more information is available at https://vivosim.ai/.
The private placement underscores continued investor interest in healthcare companies that are developing alternatives to traditional animal testing. By securing funding from a healthcare-focused institutional investor, VivoSim gains not only capital but also validation of its technology from a specialized investor. The warrant amendment for existing investors also suggests efforts to align long-term incentives and reduce dilution concerns. With the FDA’s push toward NAM methods, VivoSim is well-positioned to capitalize on regulatory tailwinds. The funds will support the company’s working capital needs as it scales its operations and seeks to commercialize its human tissue models.
