[8-K] X4 Pharmaceuticals, Inc. Reports Material Event

Rhea-AI Filing Summary

X4 Pharmaceuticals, Inc. (XFOR) entered into a $40 million equity purchase agreement with Lincoln Park Capital Fund, LLC on 23 June 2025. The two-year facility allows X4 to sell newly issued common shares to Lincoln Park at the Company’s discretion.

Key mechanics

• Up to 30,000 shares per Regular Purchase, expandable to 60,000 shares when the share price is ≥ $5.00, subject to a $500,000 per-purchase cap.
• Purchase price set at 97 % of the lower of (i) the lowest trade on the purchase date or (ii) the average of the three lowest closes in the prior 10 trading days.
• Optional Accelerated and Additional Accelerated Purchases (up to 300 %/30 % of volume) follow the same 97 % pricing formula.
• Beneficial ownership cap: 4.99 % (option to lift to 9.99 % after 61 days); Exchange cap: 19.99 % of outstanding shares (≈ 1.44 million, incl. 137,099 commitment shares) unless shareholder approval or average sales price ≥ $2.67.
• X4 issued 137,099 commitment shares to Lincoln Park as a fee; no cash received for these shares.

Strategic and financial considerations

• Facility is non-exclusive; X4 may raise capital elsewhere (other than similar equity-line structures for a limited period).
• Lincoln Park is prohibited from short selling or hedging X4 stock.
• Use of proceeds: working capital and general corporate purposes.
• Company may terminate the agreement at any time without cost.

The shares are registered under the Company’s effective shelf registration (Form S-3 No. 333-273961). Copies of the Purchase Agreement, Registration Rights Agreement, and related legal opinion are filed as Exhibits 10.1, 10.2 and 5.1, respectively.

Positive

• Secures up to $40 million of nondilutive debt-free capital under Company’s timing control
• 97 % pricing discount is modest versus typical 5-10 % equity-line discounts
• Agreement can be terminated at any time without cost, preserving strategic flexibility
• Lincoln Park barred from short selling, reducing potential market manipulation

Negative

• Potential dilution up to at least 19.99 % of outstanding shares over 24 months
• Immediate issuance of 137,099 commitment shares with no cash proceeds
• Equity issuance at a discount and possible volume overhang could pressure share price
• Facility signals a continuing need for external financing to fund operations

Insights

Financial Analyst

TL;DR: $40 m equity line boosts liquidity but creates dilution risk; neutral valuation impact.

The Lincoln Park facility gives X4 immediate funding optionality without incurring debt, useful for a company still in cash-consuming clinical phases. Pricing at a 3 % discount is typical and avoids deep dilution seen in PIPEs. Management’s ability to time draws mitigates market impact, while the absence of volume restrictions enhances flexibility. However, issuing up to 20 % of outstanding stock (and potentially more with shareholder approval) represents a material dilution over 24 months. The up-front issue of 137 k commitment shares (≈1.9 % of pre-deal float) occurs without cash consideration, immediately pressuring EPS. Overall, the agreement improves liquidity but does not radically alter the funding trajectory; impact is largely valuation-neutral pending actual drawdown pace.

Corporate Governance Expert

TL;DR: Standard covenants protect shareholders; dilution limits remain key watch-point.

The agreement embeds customary investor protections: (i) 4.99 % ownership cap curbs creeping control, (ii) explicit no-short-sale covenant limits abusive trading, and (iii) Company retains full discretion to terminate without penalty. The 19.99 % Nasdaq exchange cap aligns with listing rules and forces shareholder consultation if exceeded, supporting governance transparency. Still, equity-line structures can incentivise the investor to resell shares quickly, potentially increasing volatility. Shareholders should monitor management’s use of the facility and ensure alternative financing avenues are evaluated to minimise dilution.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Data of earliest event reported): June 23, 2025

X4 PHARMACEUTICALS, INC.

(Exact name of registrant as specified in its charter)

Delaware

001-38295

27-3181608

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

61 North Beacon Street,			4th Floor
Boston,			Massachusetts						02134
(Address of principal executive offices)									(Zip Code)

(857) 529-8300

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

XFOR

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 1.01 Entry Into Material Definitive Agreement

On June 23, 2025, X4 Pharmaceuticals, Inc. (the “Company”) and Lincoln Park Capital Fund, LLC (“Lincoln Park”) entered into a purchase agreement (the “Purchase Agreement”) and a registration rights agreement (the “Registration Rights Agreement”), pursuant to which the Company has the right to sell to Lincoln Park shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), having an aggregate value of up to $40,000,000 (the “Purchase Shares”), subject to certain limitations and conditions set forth in the Purchase Agreement. The Company will control the timing and amount of any sales of Purchase Shares to Lincoln Park pursuant to the Purchase Agreement.

Under the Purchase Agreement, on any business day after June 23, 2025 selected by the Company over the twenty-four (24) month term of the Purchase Agreement (each, a “Purchase Date”), the Company may direct Lincoln Park to purchase up to 30,000 shares of Common Stock on such Purchase Date (a “Regular Purchase”) if the closing sale price per share of the Common Stock on the Nasdaq Capital Market (“Nasdaq”) is not below $0.50 on the applicable Purchase Date; provided, however, that (i) a Regular Purchase may be increased to up to 35,000 shares, if the closing sale price per share of the Common Stock on Nasdaq is not below $3.50 on the applicable Purchase Date; (ii) a Regular Purchase may be increased to up to 40,000 shares, if the closing sale price per share of the Common Stock on Nasdaq is not below $4.00 on the applicable Purchase Date; (iii) a Regular Purchase may be increased to up to 50,000 shares, if the closing sale price per share of the Common Stock on Nasdaq is not below $4.50 on the applicable Purchase Date; and (iv) a Regular Purchase may be increased to up to 60,000 shares, if the closing sale price per share of the Common Stock on Nasdaq is not below $5.00 on the applicable Purchase Date; provided, that Lincoln Park’s maximum purchase obligation under any single Regular Purchase will not exceed $500,000, unless the Company and Lincoln Park mutually agree to increase the maximum amount of such Regular Purchase. The above-referenced share amount limitations and closing sale price thresholds are subject to adjustment for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction as provided in the Purchase Agreement. The purchase price per share for each such Regular Purchase will be equal to 97% of the lesser of:

•the lowest sale price for the Common Stock on Nasdaq on the date of sale; or

•the average of the three (3) lowest closing sale prices for the Common Stock on Nasdaq during the ten (10) consecutive business days ending on the business day immediately preceding the purchase date.

The Company also has the right to direct Lincoln Park, on any business day on which the Company has properly submitted a Regular Purchase notice for the maximum amount the Company is then permitted to sell to Lincoln Park in such Regular Purchase, to purchase an additional amount of the Common Stock (an “Accelerated Purchase”) of up to the lesser of:

•300% of the number of shares to be purchased pursuant to such Regular Purchase; and

•30% of the aggregate shares of the Common Stock traded on Nasdaq during all or, if certain trading volume or market price thresholds specified in the Purchase Agreement are crossed on the applicable Accelerated Purchase date, the portion of the normal trading hours on the applicable Accelerated Purchase date prior to such time that any one of such thresholds is crossed, which period of time on the applicable Accelerated Purchase date is referred to as the Accelerated Purchase Measurement Period.

The parties may mutually agree to increase the number of shares to be purchased by Lincoln Park pursuant to any Accelerated Purchase.

The purchase price per share for each such Accelerated Purchase will be equal to 97% of the lessor of:

•the volume-weighted average price of the Common Stock on Nasdaq during the applicable Accelerated Purchase Measurement Period on the applicable Accelerated Purchase date; or

•the closing sale price of the Common Stock on Nasdaq on the applicable Accelerated Purchase date.

The Company has the right in its sole discretion to set a minimum price threshold for each Accelerated Purchase in the notice provided with respect to such Accelerated Purchase.

The Company also has the right to direct Lincoln Park on any business day on which an Accelerated Purchase has been completed and all of the shares to be purchased thereunder have been properly delivered to Lincoln Park in accordance with the Purchase Agreement to purchase an additional amount of the Common Stock (an “Additional Accelerated Purchase”) of up to the lesser of:

•300% of the number of shares purchased pursuant to the applicable corresponding Regular Purchase; or

•30% of the aggregate shares of the Common Stock traded on Nasdaq during all or, if certain trading volume or market price thresholds specified in the Purchase Agreement are crossed on the applicable Additional Accelerated Purchase date, the portion of the normal trading hours on the applicable Additional Accelerated Purchase date prior to such time that any one of such thresholds is crossed, which period of time on the applicable Additional Accelerated Purchase date is referred to as the Additional Accelerated Purchase Measurement Period.

The parties may mutually agree to increase the number of shares to be purchased by Lincoln Park pursuant to any Additional Accelerated Purchase.

The Company may, in its sole discretion, submit multiple Additional Accelerated Purchase notices to Lincoln Park on a single Accelerated Purchase date, provided that all prior Accelerated Purchases and Additional Accelerated Purchases (including those that have occurred earlier on the same day) have been completed and all of the shares to be purchased thereunder have been properly delivered to Lincoln Park in accordance with the Purchase Agreement.

The purchase price per share for each such Additional Accelerated Purchase will be equal to 97% of the lower of:

•the volume-weighted average price of the Common Stock on Nasdaq during the applicable Additional Accelerated Purchase Measurement Period on the applicable Additional Accelerated Purchase date; or

•the closing sale price of the Common Stock on Nasdaq on the applicable Additional Accelerated Purchase date.

In the case of Regular Purchases, Accelerated Purchases and Additional Accelerated Purchases, the purchase price per share will be equitably adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction occurring during the business days used to compute the purchase price. Other than as described above, there are no trading volume requirements or restrictions under the Purchase Agreement, and the Company will control the timing and amount of any sales of Common Stock to Lincoln Park.

The Purchase Agreement prohibits the Company from directing Lincoln Park to purchase any shares of Common Stock if those shares, when aggregated with all other shares of Common Stock then beneficially owned by Lincoln Park (as calculated pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, and Rule 13d-3 thereunder), would result in Lincoln Park beneficially owning more than 4.99% of the then total outstanding shares of Common Stock (the “Beneficial Ownership Cap”). Lincoln Park, upon written notice to the Company, may increase its Beneficial Ownership Cap to up to 9.99%. Any increase in Lincoln Park’s Beneficial Ownership Cap will not be effective until the sixty-first (61st) day after such written notice is delivered to the Company.

The Purchase Agreement does not limit the Company’s ability to raise capital from other sources at its sole discretion, except that, subject to certain exceptions, for a period set forth in the Purchase Agreement, the Company may not enter into any equity line of credit or substantially similar continuous offering other than with Lincoln Park, excluding an “at the market offering” of Common Stock exclusively through one or more registered broker dealers. The Purchase Agreement and Registration Rights Agreement each contain customary representations, warranties, and agreements of the Company and Lincoln Park, indemnification rights and other obligations of the parties. The Offering of Common Stock pursuant to the Purchase Agreement will terminate on the date that all shares offered by the Purchase Agreement have been sold or, if earlier, the expiration or termination of the Purchase Agreement. The Company has the right to terminate the Purchase Agreement at any time, without fee, penalty or cost to the Company.

Lincoln Park has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Common Stock.

In consideration for entering into the Purchase Agreement, the Company agreed to issue 137,099 shares of Common Stock (the “Commitment Shares”) to Lincoln Park as a commitment fee. The Company will not receive any cash proceeds from the issuance of the Commitment Shares.

Under applicable rules of Nasdaq, the Company may not issue or sell to Lincoln Park under the Purchase Agreement more than 19.99% of the shares of the Common Stock outstanding immediately prior to the execution of the Purchase Agreement (the “Exchange Cap”) (or 1,435,035 shares, which includes the Commitment Shares, based on 7,178,764 shares outstanding immediately prior to the execution of the Purchase Agreement prior to the issuance of the Commitment Shares), unless (i) the Company obtains stockholder approval to issue shares of its common stock in excess of the Exchange Cap to Lincoln Park under the Purchase Agreement in accordance with applicable Nasdaq rules or (ii) the average price of all applicable sales of Common Stock to Lincoln Park under the Purchase Agreement equals or exceeds $2.67 per share, which is the lower of (A) the official closing price of the Common Stock on Nasdaq on the date immediately preceding the execution Purchase Agreement and (B) the average official closing price of the Common Stock on Nasdaq for the five consecutive trading days immediately preceding date of the Purchase Agreement, such that the transactions contemplated by the Purchase Agreement are exempt from the Exchange Cap limitation under applicable Nasdaq rules.

The aggregate net proceeds under the Purchase Agreement to the Company will depend on the frequency and prices at which shares of Common Stock are sold to Lincoln Park. Actual sales of shares of Common Stock to Lincoln Park under the Purchase Agreement and the amount of such net proceeds will depend on a variety of factors to be determined by the Company from time to time, including (among others) market conditions, the trading price of the Common Stock and determinations by the Company as to other available and appropriate sources of funding for the Company. The Company expects to use any proceeds from the sale of the Purchase Shares for working capital and general corporate purposes.

The issuance of the Purchase Shares and Commitment Shares have been registered pursuant to the Company’s effective shelf registration statement on Form S-3 (File No. 333-273961) (the “Registration Statement”), and the related base prospectus included in the Registration Statement, as supplemented by a prospectus supplement filed on June 23, 2025. A copy of the legal opinion as to the legality of the shares of Common Stock subject to the Purchase Agreement is filed as Exhibit 5.1 attached hereto.

The foregoing is a summary description of certain terms of the Purchase Agreement and the Registration Rights Agreement and, by its nature, is incomplete. Copies of the Purchase Agreement and the Registration Rights Agreement are attached hereto as Exhibit 10.1 and Exhibit 10.2, respectively, and are incorporated herein by reference. The foregoing descriptions of the Purchase Agreement and the Registration Rights Agreement are qualified in their entirety by reference to such exhibits.

The Purchase Agreement and Registration Rights Agreement contain customary representations and warranties, covenants and indemnification provisions that the parties made to, and solely for the benefit of, each other in the context of all of the terms and conditions of such agreements and in the context of the specific relationship between the parties thereto. The provisions of the Purchase Agreement and Registration Rights Agreement, including any representations and warranties contained therein, are not for the benefit of any party other than the parties thereto and are not intended as documents for investors and the public to obtain factual information about the current state of affairs of the parties thereto. Rather, investors and the public should look to other disclosures contained in the Company’s annual, quarterly and current reports the Company may file with the Securities and Exchange Commission (the “SEC”).

The information contained in this Current Report on Form 8-K shall not constitute an offer to sell or the solicitation of an offer to buy the shares of Common Stock discussed herein, nor shall there be any offer, solicitation or sale of the shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Forward-Looking Statements

This Current Report on Form 8-K contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements about the potential offering of securities under the Purchase Agreement, the anticipated use of proceeds of the offering, if any, and other statements containing the words “expect,” “intend,” “may,” “will,” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including uncertainties related to market conditions, uncertainties inherent in the conduct of ongoing and planned future clinical trials, and such other factors as are set forth under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and the Company’s Quarterly Report on Form

10-Q for the quarter ended March 31, 2025, filed with the SEC on May 1, 2025, and in other filings that the Company may make with the SEC in the future. Any forward-looking statements contained in this Form 8-K speak only as of the date hereof, and the Company expressly disclaims any obligation to update any forward-looking statements, whether because of new information, future events or otherwise.

Item 9.01						Financial Statements and Exhibits.
Exhibit No.						Description
5.1						Opinion of Goodwin Procter LLP.
10.1						Purchase Agreement, dated June 23, 2025, by and between X4 Pharmaceuticals, Inc. and Lincoln Park Capital Fund, LLC.
10.2						Registration Rights Agreement, dated June 23, 2025, by and between X4 Pharmaceuticals, Inc. and Lincoln Park Capital Fund, LLC.
23.1						Consent of Goodwin LLP (contained in Exhibit 5.1)
104						Cover Page Interactive Data File (Embedded within the Inline XBRL Document).

__________________________________________________________________________________

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			X4 PHARMACEUTICALS, INC.
Date: June 23, 2025			By:			/s/ Adam S. Mostafa
						Adam S. Mostafa
						Chief Financial Officer

FAQ

How much funding can X4 Pharmaceuticals (XFOR) raise under the Lincoln Park agreement?

X4 can sell up to $40 million in common stock to Lincoln Park over a 24-month period.

What is the maximum single-day share purchase size?

A Regular Purchase is up to 30,000 shares, rising to 60,000 if the price is ≥ $5.00, with a $500,000 value cap.

What discount does Lincoln Park receive on XFOR shares?

Each sale is priced at 97 % of the lower of the day’s low trade or the average of the three lowest closes in the prior 10 days.

What are the dilution limits set by Nasdaq rules?

Without shareholder approval, X4 cannot issue more than 19.99 % of pre-deal outstanding shares (≈ 1.44 million including commitment shares).

How will X4 use the proceeds from the equity line?

Management states proceeds will be used for working capital and general corporate purposes.

Can X4 terminate the Purchase Agreement early?

Yes. X4 may terminate the agreement at any time without fee or penalty.