iSpecimen Inc. Announces Closing of $4 Million Underwritten Offering

Rhea-AI Summary

iSpecimen (NASDAQ:ISPC), an online marketplace for biospecimens, has completed its previously announced underwritten public offering, raising $4 million in gross proceeds. The offering consisted of 5,714,283 shares of common stock (or pre-funded warrants) priced at $0.70 per share.

The Company plans to allocate $1.5 million for marketing services through IR Agency LLC, $1 million for an initial milestone payment to Sales Stack Solutions Corp., with the remaining funds designated for working capital and general corporate purposes. WestPark Capital, Inc. served as the Sole Book-Runner for this firm commitment offering.

["Secured $4 million in gross proceeds from the offering", "Clear allocation plan for the raised funds including marketing and strategic initiatives"]

Positive

• None.

Negative

• Significant dilution due to issuance of 5,714,283 new shares
• Low offering price of $0.70 per share indicates potential market weakness

Insights

Capital Markets Analyst

iSpecimen's $4M offering at $0.70/share represents significant dilution with funds mainly directed to marketing and sales efforts.

This $4 million offering by iSpecimen represents a substantial capital raise relative to the company's size, but comes with significant shareholder dilution. The offering price of $0.70 per share for 5.7 million new shares implies a considerable expansion of the company's outstanding share count.

Looking at the use of proceeds, the allocation is particularly revealing: $1.5 million (approximately 37.5% of gross proceeds) will go toward marketing and advertising services from IR Agency LLC, while $1 million (25%) is earmarked for an initial milestone payment to Sales Stack Solutions Corp. Only the remaining portion (roughly 37.5% minus offering expenses) will be used for general corporate purposes.

This allocation suggests iSpecimen is prioritizing marketing and sales infrastructure over direct R&D or platform development. The company's biospecimen marketplace business model requires both healthcare provider partnerships and scientific customers, making these investments potentially strategic for expanding market reach.

However, the firm commitment underwriting structure by WestPark Capital indicates the offering had guaranteed placement, which was likely necessary given market conditions. The low per-share price of $0.70 signals challenging financing circumstances for the company. While this capital infusion provides operational runway, the dilutive impact on existing shareholders is substantial and reflects the difficult fundraising environment for smaller biotech marketplace companies.

WOBURN, Mass., July 25, 2025 (GLOBE NEWSWIRE) -- iSpecimen Inc. (Nasdaq: ISPC) (“iSpecimen” or the “Company”), an online global marketplace that connects scientists requiring biospecimens for medical research with a network of healthcare specimen providers, announced today the closing of its previously announced underwritten public offering of 5,714,283 shares of its common stock (or pre-funded warrants to purchase common stock in lieu thereof) at a public offering price of $0.70 per share (the “Offering”). The aggregate gross proceeds to the Company from the Offering was approximately $4 million, before deducting underwriting discounts and commissions and other offering expenses.

The Company intends to use the net proceeds from the Offering to pay $1,500,000 for marketing and advertising services to be provided by IR Agency LLC, $1,000,000 to fund the initial milestone payment under a definitive agreement with Sales Stack Solutions Corp., and the remainder for working capital and general corporate purposes.

The Offering was conducted on a firm commitment basis. WestPark Capital, Inc. acted as the Sole Book-Runner in connection with the Offering.

The securities described above are being offered pursuant to a registration statement on Form S-1 (File No. 333-286958), which was declared effective by the Securities and Exchange Commission (the “SEC”) on July 23, 2025. The Offering is being made only by means of a written prospectus that forms a part of the registration statement. A final prospectus relating to the Offering has been filed with the SEC. Copies of the final prospectus relating to the Offering may be obtained from WestPark Capital, Inc., 1800 Century Park East, Suite 220, Los Angeles, CA 90077, tel: 310-203-2919, e-mail: jstern@wpcapital.com and are available on the SEC’s website.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About iSpecimen

iSpecimen (Nasdaq: ISPC) offers an online marketplace for human biospecimens, connecting scientists in commercial and non-profit organizations with healthcare providers that have access to patients and specimens needed for medical discovery. Proprietary, cloud-based technology enables scientists to intuitively search for specimens and patients across a federated partner network of hospitals, labs, biobanks, blood centers and other healthcare organizations. For more information, please visit www.ispecimen.com. 

Safe Harbor Statement

Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements.” These statements include, but are not limited to, statements concerning the development of our company. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The reader is cautioned not to rely on such forward-looking statements. Such forward-looking statements relate to future events or our future performance. In evaluating these forward-looking statements, you should consider various factors, including the uncertainty regarding future commercial success; risks and uncertainties associated with market conditions and the Company’s ability to satisfy the closing conditions related to the Offering. These and other factors may cause our actual results to differ materially from any forward-looking statements. Forward-looking statements are only predictions and actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including factors discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on April 14, 2025, as well as other SEC filings. Any forward-looking statements contained in this press release speak only as of the date hereof and, except as required by federal securities laws, iSpecimen specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

For further information, please contact: 

Investor Contact 
KCSA Strategic Communications 
Phil Carlson 
iSpecimen@kcsa.com 

FAQ

What is the size and price of iSpecimen's (ISPC) July 2025 public offering?

iSpecimen's offering consisted of 5,714,283 shares priced at $0.70 per share, raising approximately $4 million in gross proceeds.

How will iSpecimen (ISPC) use the proceeds from its $4M offering?

iSpecimen will use $1.5 million for marketing services through IR Agency LLC, $1 million for a milestone payment to Sales Stack Solutions Corp., and the remainder for working capital and general corporate purposes.

Who was the underwriter for iSpecimen's (ISPC) July 2025 offering?

WestPark Capital, Inc. acted as the Sole Book-Runner for the firm commitment offering.

What type of company is iSpecimen (ISPC)?

iSpecimen is an online global marketplace that connects scientists requiring biospecimens for medical research with a network of healthcare specimen providers.

What was the registration status of iSpecimen's (ISPC) offering?

The offering was made pursuant to a registration statement on Form S-1 (File No. 333-286958), which was declared effective by the SEC on July 23, 2025.