Tempest Therapeutics (NASDAQ: TPST) completed a registered direct offering of 1,172,414 shares of common stock at $3.625 per share, generating approximately $4.25 million in gross proceeds before fees and expenses. The company also issued short‑term unregistered warrants to purchase up to an additional 1,172,414 shares at an exercise price of $3.50 per share; if fully exercised on a cash basis, the warrants could bring an extra $4.1 million in gross proceeds.
The capital raise comes at a time when Tempest’s cash balance is limited and its operating results have been negative. As of September 30, 2025, the company reported $7.5 million in cash and cash equivalents and a net loss of $3.5 million for the third quarter. The new funding is intended to support working capital and general corporate purposes, providing a much‑needed extension of the company’s runway as it continues to advance its oncology pipeline.
The offering is part of a broader strategic review that began in April 2025, during which Tempest announced it was exploring a full range of strategic alternatives. In a related development on November 19, 2025, the company agreed to acquire CAR‑T programs from Factor Bioscience, a transaction that will bring new assets and a new CEO, Matt Angel, into the company. The acquisition is expected to extend Tempest’s cash runway to mid‑2027 and shift its focus toward CAR‑T therapies.
The shares were priced at a 13% discount to the prevailing market price of $4.17 on the day of the offering, and the transaction represents roughly 23% of the company’s $18.52 million market capitalization. The issuance of new shares and warrants will dilute existing shareholders, a factor that has contributed to the negative market reaction observed after the announcement.
With the additional capital, Tempest can accelerate development of its lead oncology candidates, including amezalpat (TPST‑1120) for hepatocellular carcinoma and TPST‑1495 for familial adenomatous polyposis. The infusion of cash, coupled with the new CAR‑T assets, positions the company to pursue a more diversified pipeline and potentially pursue future partnerships or licensing opportunities as it seeks to secure long‑term sustainability.
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