How will the $1.2 million of proceeds be allocated (e.g., R&D, working capital, debt repayment)?

Allocation of the $1.2 million proceeds

bioAffinity Technologies (BIAF) disclosed that the $1.2 million raised in the private‑placement and warrant inducement transaction will be primarily earmarked for working capital and the acceleration of its research‑and‑development pipeline. The company’s filing notes that the capital will be used to fund ongoing pre‑clinical and early‑clinical programs, expand its proprietary affinity‑based platform, and cover short‑term operating expenses. Because the amount is modest relative to the firm’s cash balance and the size of its R&D budget, there is no indication that the proceeds will be directed toward significant debt repayment; BIAF has not reported any material outstanding borrowings that would require a dedicated repayment schedule.

Trading implications

The infusion of $1.2 million bolsters BIAF’s liquidity runway, reducing near‑term financing risk and allowing the firm to stay on schedule with its pipeline milestones—an upside catalyst for the stock. From a technical standpoint, the closing of the placement is likely to generate a short‑term buying pressure, especially if the transaction was priced at a discount to the prevailing market level. However, the modest scale of the raise means the impact on valuation will be limited; investors should focus on the completion of R&D milestones and any subsequent capital‑raising needs as the primary drivers of price action. In the near term, a neutral‑to‑slightly‑bullish stance is warranted, with a watch‑list for any updates on how the proceeds are actually deployed (e.g., announcements of new assay launches or partnership agreements) that could trigger a more pronounced move.