VivoSim Labs Raises $4 Million in Private Placement with Healthcare-Focused Investor

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 company will issue 4,705,883 shares of common stock or common stock equivalents, along with accompanying warrants, priced at a combined $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, VivoSim 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 stated it 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.

VivoSim Labs is a pharmaceutical and biotechnology services company focused on testing drugs and drug candidates in three-dimensional human tissue models of the 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 is available at https://vivosim.ai/.

The private placement underscores investor confidence in VivoSim's technology and its alignment with regulatory trends toward reducing animal testing. By securing funding from a healthcare-focused institutional investor, VivoSim strengthens its balance sheet to advance its NAM models, which could disrupt traditional toxicology testing. The amendment of existing warrants at a lower exercise price also aligns incentives and may reduce dilution concerns. This capital infusion comes at a critical time as the FDA's Roadmap encourages adoption of human tissue models, positioning VivoSim to capture market share in the preclinical testing space.