Valion Bio announces preferred stock and warrant sales totaling $4.77 million

Valion Bio, Inc. (NASDAQ:VBIO) disclosed Monday it has entered into agreements for the sale of Series B and Series C Non-Voting Convertible Preferred Stock and related warrants, raising a total of approximately $4.77 million. The transactions were detailed in a press release statement and reported in a filing with the Securities and Exchange Commission.The capital raise comes as the company trades at just $0.84 per share with a market capitalization of only $750,000, down nearly 99% over the past year. InvestingPro Tips highlight that the company is quickly burning through cash and operates with a significant debt burden, with a debt-to-equity ratio of 4.1. The platform’s Fair Value analysis suggests the stock is undervalued at current levels, ranking among most undervalued stocks, with 15 additional ProTips available for deeper analysis.

According to the filing, Valion Bio and investor 3i, LP executed a letter agreement under which 3i agreed to purchase 50 Series B Preferred Shares and warrants to acquire 1,539 shares of common stock at an initial exercise price of $1.0092 per share. The aggregate purchase price for this portion of the transaction is $50,000, subject to closing conditions.

In a separate agreement, Valion Bio and certain Series C Preferred Purchasers entered into a letter agreement for the purchase of 4,717.73 Series C Preferred Shares and warrants to purchase 2,524,343 shares of common stock, also at an initial exercise price of $1.0092 per share. The total consideration for this transaction is $4,717,717.61. Of this amount, $3,217,717.61 will be retained by the purchasers to satisfy overdue cash true-up payments, while $1,500,000 will be paid in cash by wire transfer.

The securities in both transactions were issued in private placements exempt from registration under Section 4(a)(2) of the Securities Act of 1933 and/or Rule 506(b).

Prior to these agreements, the Series C Preferred Purchasers had acquired 6,000 Series C Preferred Shares and related warrants for $6 million, with rights to purchase up to an additional 31,500 Series C Preferred Shares and corresponding warrants for up to $31.5 million, subject to terms and conditions.

Valion Bio is incorporated in Delaware and is based in San Antonio, Texas. The company’s common stock is listed on the Nasdaq Stock Market under the ticker VBIO.

All information is based on a press release statement and the company’s recent SEC filing.

In other recent news, Valion Bio, Inc. announced significant corporate changes and funding developments. The company has appointed Lisa Wolf as the new Chief Operating Officer, effective immediately. Wolf will continue her duties as Chief Financial Officer, a position she has held since July 2025. Her background includes over 30 years of experience in public accounting and private industry, with senior roles at Resonant, Inc. These changes were disclosed in a statement based on an SEC filing. Alongside this leadership change, Valion Bio has also announced new funding agreements, although specific details of these agreements were not provided. The company has not disclosed any family relationships or transactions related to these appointments that require SEC disclosure. These developments are part of Valion Bio’s recent strategic moves.