Company: BIAF
Filing Date: 2025-05-23
Form Type: PRER14A
Source: 0001641172-25-012315
Chunk: 54

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-05-23
Form: PRER14A
Chunk 54
---
 from the holder to the Company, the holder may increase the amount of beneficial ownership of outstanding shares after exercising the holder’s May 2025 Warrants up to 9.99% of the number of the Company’s shares of Common Stock outstanding immediately after giving effect to the exercise.

Reasons for the Anti-Dilution Adjustment Proposal

We are seeking stockholder approval of the Anti-Dilution Adjustment contained in the May 2025 Warrants and the issuance of up to an aggregate maximum of 49,907,811 shares of our Common Stock (on a pre-reverse stock split basis which number shall be adjusted based on the reverse stock split ratio) upon exercise of the May 2025 Warrants, assuming that we consummate a Dilutive Issuance, triggering of the Anti-Dilution Adjustment, at a price of $0.10 or less, because at the time the May 2025 Warrants were issued, we did not have a sufficient number of shares authorized to allow for the exercise in full of the May 2025 Warrants pursuant to the Anti-Dilution Adjustment.

The Board is not seeking the approval of our stockholders to authorize our entry into or consummation of the Public Offering, nor is the Board seeking approval of the issuance of the May 2025 Warrants, as the Public Offering has already been completed and the May 2025 Warrants have been issued. The Board is also not seeking stockholder approval of the Reverse Stock Split Adjustment or the issuance of the Reverse Stock Split Adjustment Shares upon exercise of the May 2025 Warrants, as the Reverse Stock Split Adjustment will be triggered if we effect a reverse stock split and the Reverse Stock Split Adjustment Shares will thereafter be issuable upon exercise of the May 2025 Warrants. This Proposal No. 6 only seeks approval of the Anti-Dilution Adjustment and the resulting reduction in exercise price and issuance of the maximum number of Anti-Dilution Adjustment Shares that could be issuable upon exercise of the May 2025 Warrants, if we should consummate a Dilutive Issuance.

Potential Consequences if Proposal No. 6 is Not Approved

The failure of our stockholders to approve this Proposal No. 6 will mean that we will incur substantial additional costs and expenses. The Purchase Agreement requires us to hold a meeting of our stockholders within 90 days after the closing of the Public Offering for purposes of seeking Warrant Stockholder Approval. If we do not obtain Warrant Stockholder Approval at the first