Company: BIAF
Filing Date: 2025-05-23
Form Type: PRER14A
Source: 0001641172-25-012315
Chunk: 28

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-05-23
Form: PRER14A
Chunk 28
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 expected impact of the Reverse Stock Split on the trading market for the Common Stock in the short and long term; |
| ● | which Reverse Stock Split Ratio would result in the greatest overall reduction in our administrative costs; and                                                                                    |
| ● | prevailing general market and economic conditions.                                                                                                                                                 |

Reasons for the Reverse Stock Split

To increase the per share price of our Common Stock.As discussed above, the primary objective for effecting the Reverse Stock Split, should our Board choose to effect
one, would be to increase the per share price of our Common Stock and regain compliance with the Nasdaq Minimum Bid Price Requirement.
Our Board believes that, should the appropriate circumstances arise, effecting the Reverse Stock Split, could, among other things, help
us to appeal to a broader range of investors, generate greater investor interest in the Company, and improve the perception of our Common
Stock as an investment security. Our Common Stock is listed on the Nasdaq Capital Market, and the failure to comply with the $1.00
minimum bid price requirement may be cured by effecting the Reverse Stock Split.

| 17 |

To potentially improve the liquidity of the Common Stock.A Reverse Stock Split could allow a broader range of institutions to invest in the Common Stock (namely, funds that are prohibited
from buying stocks whose price is below certain thresholds), potentially increasing trading volume and liquidity of the Common Stock and
potentially decreasing the volatility of the Common Stock if institutions become long-term holders of the Common Stock. A Reverse Stock
Split could help increase analyst and broker interest in the Common Stock as their policies can discourage them from following or recommending
companies with low stock prices. Because of the trading volatility often associated with low-priced stocks, many brokerage houses and
institutional 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