BRISBANE, Calif. - Tempest Therapeutics, Inc. (NASDAQ:TPST) entered a definitive agreement for the immediate exercise of warrants to purchase 1,172,414 shares of common stock at a reduced exercise price of $1.73 per share.
The company will receive approximately $2 million in gross proceeds before deducting placement agent fees and other expenses.
The capital raise comes as the company's short-term obligations exceed liquid assets, highlighting the need for additional working capital.
As consideration, Tempest will issue new unregistered short-term warrants to purchase up to 2,344,828 shares at $1.73 per share.
The new warrants require stockholder approval and expire two years after issuance.
Tempest plans to use the net proceeds for working capital and general corporate purposes.
