Vivos Therapeutics, Inc. (NASDAQ: VVOS) exercised outstanding warrants on January 16 2026, generating approximately $4.64 million in gross proceeds. The company also issued new unregistered warrants to purchase up to 3,964,712 shares at an exercise price of $2.09 per share, immediately exercisable and expiring five years from issuance.
The exercised warrants were originally issued in January 2023, November 2023, and February 2024, with exercise prices ranging from $3.83 to $5.05 per share. Vivos exercised them at a discounted price of $2.34 per share, allowing the company to convert roughly 1,982,356 shares into cash. The new warrants, which will expire in 24 months for the portion tied to the original warrants and in five years for the remainder, provide a potential future dilution overhang for shareholders.
Vivos’ financial profile underscores the urgency of this capital raise. The company’s trailing‑12‑month revenue stands at $17.32 million, with a three‑year revenue growth rate of –46.8%. Operating and net margins are –94.26% and –98.77%, respectively, and the Altman Z‑Score of –7.56 places the firm in the distress zone. Despite a 76% year‑over‑year increase in Q3 2025 revenue to $6.8 million, the company continues to post significant operating losses and a high debt burden, prompting the need for additional liquidity.
The proceeds will be deployed for working capital and general corporate purposes, with a focus on accelerating the expansion of Vivos’ sleep‑care centers under its direct‑care model. The company’s devices have received FDA clearance for treating obstructive sleep apnea in adults and children, positioning it to capture a growing market for non‑surgical, non‑invasive sleep‑disordered breathing solutions. The infusion of cash is intended to support capital expenditures for new centers, strengthen the balance sheet, and sustain ongoing clinical and commercial initiatives.
While the immediate cash injection provides a short‑term liquidity boost, the issuance of new warrants at a lower exercise price introduces a future dilution risk. If exercised, the 3,964,712 shares could increase the share count substantially, potentially diluting earnings per share and shareholder value. Management has indicated that the warrants are part of a broader strategy to maintain flexibility while funding growth.
Analysts have noted that Vivos’ recent financial performance, though showing revenue growth, remains heavily burdened by operating losses and high debt. The company’s guidance for the next quarter remains cautious, reflecting the need to balance expansion with cost control. The warrant exercise is therefore seen as a tactical move to shore up cash reserves while acknowledging the ongoing financial challenges.
In summary, Vivos Therapeutics’ warrant exercise and new warrant issuance represent a significant capital‑raising event that addresses immediate liquidity needs but also introduces potential dilution. The transaction highlights the company’s precarious financial position and its strategy to expand its sleep‑care footprint amid regulatory approvals and market demand for its sleep‑disordered breathing solutions.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.