(RTTNews) - Tempest Therapeutics Inc. (TPST), a clinical-stage biotechnology company, on Friday reported a definitive agreement of the immediate exercise of outstanding warrants and announced the issue of new short-term warrants.
Following the announcement, shares dropped over 10% on Friday.
The company will exercise outstanding warrants to purchase 1,172,414 shares of the company's common stock at a reduced exercise price of $1.73 per share, issued originally in November 2025 at an exercise price of $3.50 per share.
The closing of the warrant exercise transaction is expected to be May 29, 2026. The company will issue new unregistered short-term warrants to purchase up to 2,344,828 shares of common stock at $1.73 per share.
It is estimated that the gross proceeds from the warrant exercise will amount to $2 million, and additional potential gross proceeds of $4 million may be gained from the new short-term warrants.
TPST is currently trading at $1.54, down 10.54%.
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