- Financing priced at $1.60 with no warrants or discount
- B. Riley Principal Capital and B. Riley executives, as well as Biomerica's CEO and all members of Biomerica's Board of Directors participated in the financing
- Proceeds expected to strengthen the Company's balance sheet and fund operations and support the Board's ongoing evaluation of potential strategic opportunities, including partnerships and business combinations
IRVINE, Calif., Aug. 27, 2026 (GLOBE NEWSWIRE) -- Biomerica, Inc. (Nasdaq: BMRA) ("Biomerica" or the "Company"), a developer and manufacturer of diagnostic test systems, today announced that it has entered into definitive agreements with institutional and individual investors for a private placement of 1,393,705 unregistered shares of the Company's common stock at a price of $1.60 per share, expected to provide approximately $2.23 million in gross proceeds to the Company.
The financing was priced at $1.60 at the time the definitive agreements were entered into and includes no warrants or discounted securities.
Participation in the financing included B. Riley Principal Capital, certain executives and employees of B. Riley Securities, Inc. ("B. Riley"), the Company's Chief Executive Officer, and all members of the Company's Board of Directors, reflecting meaningful alignment between outside investors and Company leadership.
Following the closing of the financing, the Company expects to have approximately 4,588,968 shares of the Company's common stock outstanding on a pro forma basis, with the shares issued in the financing representing approximately 30.4% of pro forma shares outstanding.
The Company intends to use the proceeds to strengthen its balance sheet and fund operations as its Board of Directors continues to evaluate a range of potential strategic opportunities intended to maximize shareholder value.
B. Riley Securities Engagement
Biomerica also announced that it has engaged B. Riley as its exclusive financial advisor in connection with the evaluation and potential pursuit of potential strategic opportunities.
Under the engagement, B. Riley may assist the Company in reviewing, evaluating and negotiating potential acquisitions, mergers, joint ventures, partnerships, spin-offs and other strategic combinations.
About Biomerica (NASDAQ: BMRA)
Biomerica, Inc. (www.biomerica.com) is a global biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care and in hospital/clinical laboratories for detection and/or treatment of medical conditions and diseases. The Company's products are designed to enhance the health and well-being of people, while reducing total healthcare costs. Biomerica primarily focuses on gastrointestinal and inflammatory diseases where the Company has multiple diagnostic and therapeutic products in development. The Company's Board of Directors continues to evaluate potential strategic opportunities with the goal of maximizing long-term shareholder value.
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release contains statements that are forward-looking, such as statements relating to the Company's current and future sales, revenues, overhead, expenses, cost of goods, operations and earnings, efficacy of the Company's products and tests, FDA and/or international regulatory authorization for the Company's products to be marketed and sold, including the inFoods IBS product, and the Company's other current and future products, the possible expansion into other markets, uniqueness of the Company's products, accuracy of the Company's tests and products, future use of the Company's products by physicians to treat their patients, potential revenues from the sale of current or future products, reimbursement and coverage decisions by Centers for Medicare & Medicaid Services, Medicare Administrative Contractors coverage, and private insurers, the acceptance of the Company's research at medical conferences, the clinical significance of the Company's real-world and clinical trial data, and the Company's evaluation and pursuit of strategic opportunities, including potential acquisitions, mergers, joint ventures, partnerships, spin-offs and other strategic combinations. Such forward-looking information is based upon the current beliefs and expectations of management and involves important risks and uncertainties that could significantly affect anticipated results, in the future, including, without limitation: earnings and other financial results; results of studies testing the efficacy of the Company's inFoods tests and other products; regulatory approvals necessary prior to commercialization of the Company's products; availability of the Company's test kits and other products; capacity, shipping logistics, resource and other constraints on our suppliers; dependence on our third party manufacturers; dependence on international shipping carriers; governmental import/export regulations; demand for our various tests and other products; competition from other similar products and from competitors that have significantly more financial and other resources available to them; regulatory compliance and oversight; the Company's ability to obtain patent protection on any aspects of its diagnostic or therapeutic technologies; fluctuations in the Company's operating results due to its business model and expansion plans; downturns in international and/or national economies; the Company's ability to raise additional capital; the competitive environment in which the Company will be competing; the Company's dependence on strategic relationships; and the Company's ability to identify, negotiate and complete any strategic transaction on favorable terms, or at all. Accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica. Additional factors that could cause actual results to differ from those expressed in the forward-looking statements are discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed with the SEC, and available on the SEC's website (www.sec.gov). The Company is under no obligation to update any forward-looking statements after the date of this release.
Corporate Contact:
Zack Irani
949-645-2111
investors@biomerica.com
Source: Biomerica, Inc.
