VivoSim Labs Secures $4 Million Private Placement to Advance Drug Testing Technology

VivoSim Labs, Inc. (NASDAQ: VIVS), a pharmaceutical and biotechnology services company based in San Diego, California, has announced a private placement agreement with a single healthcare-focused institutional investor to raise approximately $4 million in gross proceeds. The transaction involves the sale of 4,705,883 shares of common stock, or common stock equivalents, and accompanying warrants at a combined price of $0.85 per share. The warrants, subject to shareholder approval, are exercisable at $0.85 per share and expire five years after the initial exercise date. Additionally, the company has agreed to amend certain existing May 2024 warrants, reducing their exercise price from $9.60 to $0.85 per share, contingent upon shareholder approval.

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 are being offered in a private placement exempt from Securities Act registration requirements, and the company has committed to filing 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 is significant for VivoSim as it continues to develop and market its new approach methodologies (NAM) models, which provide testing of drugs and drug candidates in three-dimensional (3D) human tissue models of the liver and intestine. The company offers partners insights into liver and intestinal toxicology using these non-animal models. The U.S. Food and Drug Administration (FDA) has outlined a roadmap to refine animal testing requirements in favor of NAM methods, which could accelerate adoption of human tissue models. VivoSim is well-positioned to benefit from this regulatory shift, as its technology aligns with the FDA's goals.

The investment from a healthcare-focused institutional investor underscores confidence in VivoSim's technology and its potential to transform drug testing. By reducing reliance on animal models, VivoSim's approach could lead to more accurate and ethical testing, ultimately accelerating the development of safer and more effective pharmaceuticals. For the industry, this represents a move toward more predictive and human-relevant testing methods. For Texas, while VivoSim is headquartered in California, the company's partnerships and impact could extend to the state's growing biotech sector, as Texas continues to attract life sciences companies and research institutions.

For more information about VivoSim Labs, visit https://vivosim.ai/. The full press release is available at https://ibn.fm/7Ov0B.