Company: BIAF
Filing Date: 2025-04-15
Form Type: PRE 14A
Source: 0001641172-25-004857
Chunk: 48

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-04-15
Form: PRE 14A
Chunk 48
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,
the trading date immediately preceding the signing of the Inducement Agreement, was $0.78 per share and the average closing price of our
Common Stock for the five trading days immediately preceding the signing of the Inducement Agreement was $0.81. In order to comply with
Nasdaq Listing Rule 5635(d), the New Warrants are not exercisable until Stockholder Approval is obtained.

We are seeking stockholder approval for the issuance
of up to an aggregate of 2,926,166 shares of our Common Stock upon the exercise of the New Warrants. Effectively, stockholder approval
of this Warrant Exercise Proposal is one of the conditions for us to receive up to approximately $2.5 million in gross proceeds upon the
exercise of the 2,926,166 New Warrants, if exercised for cash. Loss of these potential funds could adversely impact our ability to fund
our operations.

The Board is not seeking the approval of our stockholders
to authorize our entry into or consummation of the Warrant Inducement, as the Warrant Inducement has already been completed. We are only
asking for approval to issue up to an aggregate of 2,926,166 New Warrant Shares upon exercise of the New Warrants.

Potential Consequences if Proposal No. 4 is Not Approved

The failure of our stockholders to approve this Proposal
No. 4 will mean that: (i) we cannot permit the exercise of the New Warrants and (ii) may incur substantial additional costs and expenses.

Each New Warrant has an initial exercise price of
$0.85 per share. Accordingly, we would realize an aggregate of up to approximately $2.5 million in gross proceeds, if all the New Warrants
were exercised for cash, which could adversely impact our ability to fund our operations. However, if we were to lower the exercise price
of the New Warrants we will receive less proceeds.

Potential Adverse Effects of the Approval of Proposal No. 4

If this Proposal No. 4 is approved, existing stockholders
will suffer dilution in their ownership interests in the future upon the issuance of the New Warrant Shares upon exercise of the New Warrants.
Assuming the full exercise of the New Warrants, an aggregate of 2,926,166 additional shares of Common Stock will be outstanding, and the
ownership interest of our existing stockholders would be correspondingly reduced. In addition, the sale into the public