Why BioAffinity Technologies (BIAF) Shares Are Down 50%

BioAffinity Technologies, Inc. BIAF shares are trading lower by 50.7% to $1.48 during Wednesday’s session after the company announced a securities purchase agreement with institutional investors.

This agreement involves the purchase and sale of 1.6 million shares of common stock in a registered direct offering, along with common warrants for up to 1.6 million shares of common stock in a concurrent private placement.

The combined purchase price is set at $1.5625 per common share. The common warrants have an exercise price of $1.64 per share, with an initial exercisable date contingent on shareholder approval and a five-year expiration period from the approval date. The offering is expected to close around March 8, pending customary closing conditions.

Gross proceeds from the offering are anticipated to be approximately $2.5 million before accounting for any proceeds from warrant exercises and after deducting placement agent fees and other offering expenses. WallachBeth Capital serves as the sole placement agent for the offering.

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Should I Sell My BIAF Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of bioAffinity Technologies have decreased by 12.72% in the past year. An investor who bought shares of bioAffinity Technologies at the beginning of the year would take a loss of $0.18 per share if they sold it today. The stock has fallen 3.21% over the past month, meaning an investor who bought shares on Feb. 1 would see a capital loss of $0.07.

bioAffinity Technologies shares have an all-time high of $8.3, representing 449.67% upside from current levels.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. bioAffinity Technologies stock currently has an RSI of 87.72, indicating overbought conditions.

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BIAF has a 52-week high of $3.62 and a 52-week low of $0.95.