Company: BIAF
Filing Date: 2025-06-02
Form Type: DEF 14A
Source: 0001641172-25-013280
Chunk: 29

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-06-02
Form: DEF 14A
Chunk 29
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 investors have internal policies and practices that either prohibit them from investing in low-priced stocks or tend to
discourage individual brokers from recommending low-priced stocks to their customers. Some of those policies and practices may make the
processing of trades in low-priced stocks economically unattractive to brokers. Additionally, because brokers’ commissions on low-priced
stocks generally represent a higher percentage of the stock price than commissions on higher-priced stocks, a low average price per share
of Common Stock can result in individual stockholders paying transaction costs representing a higher percentage of their total share value
than would be the case if the share price were higher. Some investors, however, may view 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

SEC Release No. 34-15230 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