Company: BIAF
Filing Date: 2025-04-15
Form Type: PRE 14A
Source: 0001641172-25-004857
Chunk: 31

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-04-15
Form: PRE 14A
Chunk 31
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 a Reverse Stock Split negatively since it reduces
the number of shares of Common Stock available in the public market. If the Reverse Stock Split Proposal is approved and the Board believes
that effecting the Reverse Stock Split is in our best interest and the best interest of our stockholders, the Board may effect the Reverse
Stock Split, regardless of whether our stock is at risk of delisting from Nasdaq Capital Market, for purposes of enhancing the liquidity
of the Common Stock and to facilitate capital raising.

To increase the number of additional shares issuable under the Company’s charter.A Reverse Stock Split will reduce the nominal number of shares of Common Stock outstanding and
the number of shares of Common Stock issuable on exercise of outstanding warrants, while leaving the number of shares issuable under our
charter unchanged. A Reverse Stock Split will therefor effectively increase the number of shares of the Common Stock that we are able
to issue. This effective increase will facilitate future capital fundraising on our part. Some investors may find the Common Stock more
attractive if the Reverse Stock Split is effected with additional assurance that we are unlikely to be limited in our ability to access
needed capital by the number of shares of our Common Sock authorized for issuance. However, other investors may find the Common Stock
a less attractive investment with the knowledge that additional dilution of the Common Stock is possible.

Potential Anti-takeover Effects of the Reverse Stock Split

Release No. 34-15230 of the staff of the SEC requires
disclosure and discussion of the effects of any action, including the proposals discussed herein, that may be used as an anti-takeover
mechanism. The relative increase in the number of shares of our Common Stock available for issuance vis-à-vis the outstanding shares
of our Common Stock, could, under certain circumstances, have an anti-takeover effect, although this is not the purpose or intent of the
Board. It could potentially deter takeovers, including takeovers that the Board has determined are not in the best interest of our stockholders,
in that additional shares could be issued (within the limits imposed by applicable law) in one or more transactions that could make a
change in control or takeover more difficult. For example, we could issue additional shares so as to dilute the stock ownership or voting
rights of persons seeking to obtain control without our agreement. Similarly, the issuance of additional shares to certain persons allied
with our management could have the effect of making it more difficult to remove our current management by dil