BioSig Technologies: A Short Setup Brewing in a Four-Day Week
Short weeks can make for good shorts. Start this four-day week by adding BioSig Technologies, Inc. (BSGM) to your watch list. The company's shares may be expensive to borrow, but this disaster waiting to happen is too good to ignore.
BioSig's stock ran up 90% last week to close at $5.28 per share on Friday for no apparent reason except that it was in danger of delisting just three weeks before. A 10-Q filed on Friday revealed that as of Mar. 31, 2025, the company had just $3.7 million in cash after burning through $1.1 million in the first quarter. To say that the situation raises substantial doubt is an understatement.
BioSig generates no meaningful revenue and finances its operations mainly through sales of equity. In the first quarter, the company netted $3.8 million from selling 4.4 million shares in an at-the-market (ATM) offering underwritten by H.C. Wainwright & Co., LLC. The shares were sold under a shelf registration and an $8.5 million prospectus supplement that is still effective and capacious.
But as BioSig's stock price and cash balance have dwindled, the company has turned to less favorable cash sources. On Feb. 28, 2025, BioSig entered into an equity subscription agreement with Lind Global Fund III, LP, managed by notorious dilution financier The Lind Partners, LLC.
BioSig can draw on the subscription agreement like a credit line, periodically issuing advance notices to Lind to sell a certain number of shares. If Lind agrees, BioSig will issue the shares to the fund at a 5% discount to the lowest daily volume-weighted average price (VWAP) during a five-day (or agreed-upon) period. The discount will incentivize Lind to immediately sell the shares, putting downward pressure on the stock price. The subscription agreement lasts for 36 months, during which BioSig may sell up to 10 million shares--about 25% of its current shares outstanding.
However, an even worse fate may await BioSig shareholders. On May 5, 2025, the company entered into a letter of intent to merge with Streamex Exchange Corp., a privately held Canadian blockchain concern. Under the proposed transaction, Streamex shareholders would initially receive about 20% of BioSig's common stock. But they would also get convertible preferred stock that, upon conversion, would increase their ownership to about 75%, leaving BioSig’s existing shareholders with a greatly reduced 25% stake.
The merger is subject to due diligence, completion of definitive documents, and regulatory approvals by the SEC and Nasdaq. But given BioSig’s liquidity concerns and Streamex’s quick path to a Nasdaq listing via merger, this could be a Q3 2025 event.
Expect downward pressure on the stock price in the next one to three months as newly issued shares enter the float and weigh on the price. Although the company has stabilized its bid price at $1.00 for now, the substantial volume of new shares and dilution from warrants will likely erode support levels, especially if there’s any downturn in market sentiment or delays in funding.