Why BioAffinity Technologies (BIAF) Shares Are Down 50%
Portfolio Pulse from Henry Khederian
BioAffinity Technologies, Inc. (NASDAQ:BIAF) shares plummeted by 50.7% to $1.48 after announcing a securities purchase agreement with institutional investors for the sale of 1.6 million shares and equal number of warrants. The offering, priced at $1.5625 per share with warrants exercisable at $1.64, aims to raise approximately $2.5 million before expenses, with WallachBeth Capital as the placement agent. The stock's decline is also contextualized by its 12.72% decrease over the past year and current overbought status indicated by an RSI of 87.72.
March 06, 2024 | 3:57 pm
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BioAffinity Technologies' stock plummeted following the announcement of a securities purchase agreement, aiming to raise approximately $2.5 million through the sale of shares and warrants.
The significant drop in BIAF's stock price is directly attributed to the announcement of a securities purchase agreement, which typically leads to dilution of existing shares. The offering's timing and the current overbought status of the stock, indicated by a high RSI, further contribute to the negative short-term impact on the stock price.
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IMPORTANCE 90
RELEVANCE 100