Tempest Therapeutics Announces Warrant Exercise for Approximately $2 Million in Gross Proceeds
Rhea-AI Summary
Tempest Therapeutics (Nasdaq: TPST) entered a definitive agreement for the immediate cash exercise of warrants for 1,172,414 common shares at a reduced exercise price of $1.73 per share. This is expected to generate about $2 million in gross proceeds, plus up to $4 million from new short-term warrants if fully exercised.
The company will issue new unregistered short-term warrants for up to 2,344,828 shares at $1.73, expiring two years after issuance, and plans to use net proceeds for working capital and general corporate purposes.
AI-generated analysis. Not financial advice.
Positive
- Immediate warrant exercise expected to raise about $2 million gross
- New short-term warrants could add approximately $4 million gross if fully exercised
- Aggregate of 1,172,414 existing warrants exercised at $1.73 per share
Negative
- Issuance of up to 2,344,828 new short-term warrants adds potential dilution
- Exercise price reduced from $3.50 to $1.73 per share for existing warrants
- No assurance that new short-term warrants will be exercised for the additional $4 million
Key Figures
Market Reality Check
Peers on Argus
Among biotech peers, moves were mixed: one notable gainer (BRNS +6.73%) and several modest decliners (e.g., ACRV -3.27%, PSTV -1.08%). Momentum scanner shows three other sector names moving up, while the context flags this as not a sector-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| May 14 | Earnings and update | Negative | -12.4% | Q1 loss, low cash, going concern language and CAR‑T business refocus. |
| May 06 | Clinical data update | Positive | -6.0% | Updated TPST‑2003 data with 100% CR in 15 CAR‑T‑naïve patients. |
| Apr 29 | Conference preview | Positive | +3.0% | Announcement of ISCT 2026 presentations with 100% CR in early cohort. |
| Apr 22 | Manufacturing milestone | Positive | +4.5% | Delivery of TPST‑2003 lentiviral vector enabling pivotal development work. |
| Apr 14 | Leadership appointment | Positive | +5.1% | Hiring Head of Business Development to drive partnerships and licensing. |
Recent TPST news has mostly seen price moves that align with the apparent tone of announcements, with one notable selloff following seemingly positive clinical data.
Over the last few months, Tempest has focused on advancing its CAR‑T programs and reshaping its business. Clinical updates for TPST‑2003 in April and May 2026 reported 100% complete response rates in small relapsed/refractory multiple myeloma and POEMS cohorts, often accompanied by positive price reactions of 2.96%, 4.52%, and 5.14%. However, the Q1 2026 financial update on May 14, highlighting a $27.7M net loss and low cash, led to a -12.44% move. Today’s warrant exercise news fits a continued pattern of financing-driven dilution alongside clinical progress.
Regulatory & Risk Context
An effective Form S-3 shelf filed on 2026-04-01 registers 2,777,781 shares for resale from a March 20, 2026 private placement. The company does not receive proceeds from these resales but may receive cash from warrant exercises. The shelf is effective through 2029-04-01 and has been used in at least 2 prospectus supplements.
Market Pulse Summary
This announcement details a warrant repricing and exercise that provides approximately $2 million in gross proceeds and creates additional potential proceeds of about $4 million through new short-term warrants. It adds to a series of recent financings and resale registrations while the company manages low cash and Nasdaq listing compliance issues. Investors may focus on how this capital impacts runway relative to Tempest’s CAR‑T milestones and previously disclosed net loss of $27.7 million and cash balance of $1.8 million.
Key Terms
warrants financial
placement agent financial
registration statement on Form S-1 regulatory
AI-generated analysis. Not financial advice.
BRISBANE, Calif., May 29, 2026 (GLOBE NEWSWIRE) -- Tempest Therapeutics, Inc. (Nasdaq: TPST) (the “Company”), a clinical-stage biotechnology company developing a pipeline of advanced CAR-T cell therapy product candidates to treat cancer, today announced the entry a definitive agreement for the immediate exercise of certain outstanding warrants to purchase an aggregate of 1,172,414 shares of the Company's common stock originally issued by the Company on November 26, 2025, having an original exercise price of
H.C. Wainwright is acting as the exclusive placement agent for the transaction.
As consideration for the exercise of such existing warrants for cash, the Company will issue new unregistered short-term warrants to purchase up to an aggregate of 2,344,828 shares of common stock at an exercise price of
The aggregate gross proceeds from the exercise of the existing warrants are expected to be approximately
The resale of the shares of common stock issuable upon the exercise of the existing warrants has been registered pursuant to an effective registration statement on Form S-1 (File No. 333- 292026).
The offer and sale of the new short-term warrants and the shares of common stock issuable upon exercise of the new short-term warrants have not been registered under the Securities Act of 1933, as amended, or under applicable state securities laws. Accordingly, the new short-term warrants and the shares of common stock issuable upon the exercise of the new short-term warrants may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act of 1933, as amended, and such applicable state securities laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Tempest Therapeutics
Tempest Therapeutics is a clinical-stage biotechnology company developing a pipeline of advanced CAR-T cell therapy product candidates to treat cancer. Tempest is headquartered in Brisbane, California. More information about Tempest can be found on the company’s website at https://www.tempesttx.com.
Forward-looking Statements
This press release contains forward-looking statements (including within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”)) concerning Tempest Therapeutics, Inc. These statements may discuss goals, intentions, and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of the management of Tempest Therapeutics, as well as assumptions made by, and information currently available to, management of Tempest Therapeutics. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “could”, “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend,” and other similar expressions. All statements that are not historical facts are forward-looking statements, including but not limited to, statements regarding: the consummation of the offering and the satisfaction of customary closing conditions related to the offering, the use of proceeds therefrom, the potential exercise of the short-term warrants prior to their expiration and the receipt of Stockholder Approval. Any forward-looking statements in this press release are based on Tempest Therapeutics’ current expectations, estimates and projections about its industry as well as management’s current beliefs and expectations of future events only as of today and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to market and other conditions, Tempest Therapeutics’ need for additional capital to fund its planned programs and operations and to continue to operate as a going concern; unexpected safety or efficacy data observed during preclinical or clinical trials; the possibility that results from prior clinical trials and preclinical studies may not necessarily be predictive of future results; past results may not be indicative of future results; clinical trial site activation or enrollment rates that are lower than expected; loss of key personnel; changes in expected or existing competition; changes in the regulatory environment; risks relating to volatility and uncertainty in the capital markets for biotechnology companies; and unexpected litigation or other disputes. These and other factors that may cause actual results to differ from those expressed or implied are discussed in greater detail in the “Risk Factors” section of Tempest Therapeutics’ Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”) on March 30, 2026, and in other documents filed by Tempest Therapeutics from time to time with the SEC. Except as required by applicable law, Tempest Therapeutics undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Tempest Therapeutics’ views as of any date subsequent to the date of this press release and should not be relied upon as prediction of future events. In light of the foregoing, investors are urged not to rely on any forward-looking statement in reaching any conclusion or making any investment decision about any securities of Tempest Therapeutics.
Investor & Media Contacts:
Sylvia Wheeler
Wheelhouse Life Science Advisors
swheeler@wheelhouselsa.com
Aljanae Reynolds
Wheelhouse Life Science Advisors
areynolds@wheelhouselsa.com
