Femasys Inc. (NASDAQ: FEMY) announced on August 7, 2026 that it had entered into a securities purchase agreement for a $30 million private placement. The company reported approximately $19.12 million in cash on its balance sheet prior to the raise.
Nantahala Capital led the round as a new institutional investor. Additional new healthcare-focused funds participated, including Rosalind Advisors, Inc., as well as members of Femasys' management team. Laidlaw & Company (UK) Ltd. acted as placement agent.
The company is selling 9,374,999 shares of common stock and pre-funded warrants, plus accompanying warrants to purchase 18,749,998 shares of common stock. The purchase price per share and accompanying warrants is $3.20; pre-funded warrants are priced at $3.1999 and are exercisable at $0.0001 per share. Accompanying warrants carry a $2.95 exercise price and a three-year term.
A separate tranche of milestone warrants covering 9,374,999 shares becomes exercisable 12 months after closing, contingent on specified U.S. revenue and share-price milestones and an effective resale registration statement. If all warrants are exercised for cash, they would provide up to an additional $60 million, bringing total potential proceeds to $90 million. The transaction is expected to close on or around August 10, 2026.
FEMY shares fell $0.33, or 11.07 percent, to $2.65 on August 8, 2026 — the first trading session after the announcement — opening at $3.11 and ranging between $2.29 and $3.14 during the day. Volume reached 0.55 million shares. The $3.20 filing price represented a discount to the Friday closing price, per the company's August 7 news release on GlobeNewswire. The stock's 52-week range runs from $2.29 to $22.20, per the same release.
Femasys founder and CEO Kathy Lee-Sepsick framed the raise in direct terms: "This financing substantially strengthens our balance sheet and provides the runway to execute our business plan, including bringing our fertility portfolio directly to U.S. OB/GYNs and fertility specialists and advancing the U.S. FemBloc® clinical and regulatory program."
She added: "We believe the participation of prominent institutional investors reflect confidence in Femasys' strategy, differentiated technologies and significant market opportunity."
Proceeds are earmarked for two purposes: commercializing the fertility portfolio and advancing FemBloc through its U.S. pivotal trial and regulatory process.
The fertility portfolio includes FemaSeed® Intratubal Insemination (ITI), described in the release as a first-step infertility treatment used alongside the CLIA-waived FemSperm® sperm preparation and analysis product line; FemVue®, an ultrasound-based fallopian tube assessment device; and the FemHSG™ Catheter, used with FemVue for comprehensive fertility workup.
FemBloc® — a non-surgical, in-office permanent birth control device — received full regulatory approval in Europe in June 2025, in the UK in August 2025, and in New Zealand in September 2025. In the United States, FemBloc is currently enrolling in its final pivotal trial ahead of a regulatory submission.
The financing arrives against a backdrop of a broadly stronger week for equities. The Nasdaq Composite climbed 5.2% for the week ended August 8, 2026, closing Friday at 26,690.62, per CNBC. Small-cap healthcare names were active during the week, with biotechnology leading the Russell 3000 small-cap 52-week high list as of August 6, per Trefis.
For Femasys, the near-term calendar is defined: closing expected around August 10, followed by the 12-month clock on milestone warrant eligibility and the ongoing FemBloc pivotal enrollment.