iSpecimen Inc. Announces Pricing of $4 Million Underwritten Offering

Rhea-AI Summary

iSpecimen (Nasdaq: ISPC), an online marketplace for biospecimens, has announced the pricing of a $4 million underwritten public offering. The company is offering 5,714,283 shares of common stock at $0.70 per share, with closing expected on July 25, 2025.

The net proceeds will be allocated as follows: $1.5 million for marketing services through IR Agency LLC, $1 million for an initial milestone payment to Sales Stack Solutions Corp., and the remainder for working capital. WestPark Capital, Inc. is serving as the Sole Book-Runner for this firm commitment offering.

Positive

• Secured $4 million in additional funding through public offering
• Clear allocation plan for proceeds including marketing and strategic partnerships

Negative

• Significant dilution with 5,714,283 new shares being offered
• Low offering price of $0.70 per share indicates potential market weakness

Insights

Investment Banking Analyst

iSpecimen raises $4M through underwritten offering at $0.70/share, diluting existing shareholders while securing capital for specific operational initiatives.

iSpecimen's $4 million offering provides much-needed capital but comes with significant dilution, introducing over 5.7 million new shares at $0.70 per share. This pricing signals substantial market challenges, as the company has been forced to raise capital at what appears to be a depressed valuation.

The allocation of proceeds reveals strategic priorities: $1.5 million (37.5% of gross proceeds) dedicated to marketing through IR Agency LLC and $1 million (25%) for a milestone payment to Sales Stack Solutions. This suggests the company is prioritizing sales acceleration and market visibility rather than direct R&D investment.

WestPark Capital's involvement as sole book-runner indicates limited institutional interest, as larger offerings typically involve multiple underwriters. The firm commitment basis provides certainty of capital but usually comes with higher fees that will reduce net proceeds.

The structure includes provisions for pre-funded warrants, a mechanism typically used when investors are concerned about ownership limitations or when there's uncertainty about the company's near-term prospects. This $4 million infusion provides operational runway but likely represents a stopgap measure rather than a comprehensive financial solution for long-term growth.

WOBURN, Mass., July 24, 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 pricing of an 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 are expected to be approximately $4 million, before deducting underwriting discounts and commissions and other estimated offering expenses. The Offering is expected to close on July 25, 2025, subject to the satisfaction of customary closing conditions.

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 is being 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 will be filed with the SEC. When available, 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 will be 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 price per share for iSpecimen's (ISPC) July 2025 public offering?

iSpecimen priced its public offering at $0.70 per share, offering 5,714,283 shares to raise approximately $4 million.

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.

When is iSpecimen's (ISPC) public offering expected to close?

The offering is expected to close on July 25, 2025, subject to customary closing conditions.

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

WestPark Capital, Inc. is acting as the Sole Book-Runner for the offering.

What is iSpecimen's (ISPC) main business model?

iSpecimen operates an online marketplace that connects scientists needing biospecimens for medical research with healthcare specimen providers through their cloud-based technology platform.