BioHarvest Sciences Inc. priced a public equity offering on November 7, 2025, issuing 2,485,000 shares of common stock at $7.00 per share, generating expected gross proceeds of approximately $17.4 million. The underwriters received a 30‑day option to purchase up to 372,750 additional shares at the offering price, with the transaction expected to close on or about November 10, 2025, subject to customary conditions.
The capital raise is part of a broader strategy to accelerate the company’s dual‑business model, which includes a contract development and manufacturing organization (CDMO) and a proprietary nutraceutical line. Proceeds will be allocated to research and development, manufacturing expansion, marketing, CDMO business growth, debt reduction or refinancing, capital expenditures, and general corporate purposes, including working capital.
BioHarvest’s recent financial performance shows a strong revenue trajectory: Q2 2025 revenue rose 41% year‑over‑year to $8.5 million, with gross margins at 60%; Q1 2025 revenue was $7.9 million, up 47% year‑over‑year, with 58.5% gross margins; and full‑year 2024 revenue reached $25.2 million, up 99% year‑over‑year, with 55% gross margins. The company’s total debt of $21.1 million and a current ratio of 0.6 underscore the need for liquidity support, which the equity offering aims to provide.
Management emphasized that the funding will enable the company to scale its CDMO platform, expand its proprietary product pipeline, and refinance high‑interest debt. CEO Ilan Sobel noted that the capital infusion will “strengthen our balance sheet and give us the flexibility to invest in high‑return opportunities while maintaining a disciplined approach to debt management.”
Analysts have noted that the offering will dilute existing shareholders, a common market reaction to equity issuances. The stock fell approximately 10.5% on the day of the pricing announcement, reflecting investor concerns about dilution, even as the company’s underlying growth metrics remain robust.
The market reaction highlights the tension between the company’s positive operational momentum—evidenced by accelerating revenue and improving gross margins—and the short‑term dilution impact of the equity raise. Investors will watch future earnings releases to assess how the raised capital translates into debt reduction, expanded production capacity, and sustained profitability.
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