iSpecimen Raises $2.5 Million in Private Placement at $5.12 per Share
iSpecimen has priced a $2.5 million private placement, issuing 488,281 shares at $5.12 each, with pre-funded warrants available at $5.1199 to accredited investors. Net proceeds will fund working capital, including up to $900,000 for marketing, with closing expected May 11 and share issuance capped at 19.99% pending shareholder approval.
1. Private Placement Details
iSpecimen has agreed to sell 488,281 common shares at $5.12 each to accredited investors, generating gross proceeds of approximately $2.5 million. The offering is expected to close on or about May 11, with total issuance capped at 19.99% of existing shares pending stockholder approval.
2. Pre-Funded Warrants Provisions
To accommodate investors nearing the 4.99% ownership threshold, the company will issue pre-funded warrants at $5.1199 each, exercisable immediately at $0.0001 per share. These warrants will remain exercisable until fully converted and count toward the 19.99% cap until shareholder approval is obtained.
3. Use of Proceeds and Next Steps
iSpecimen plans to allocate net proceeds toward working capital needs, including up to $900,000 for marketing initiatives. The company will file a preliminary proxy within 30 days following closing and hold a shareholder meeting within 90 days to secure the necessary Nasdaq rule approvals for the issuance.