GT Biopharma Announces Exercise of Warrants
GT Biopharma (NASDAQ: GTBP) has announced agreements for the exercise of existing warrants to purchase 302,069 shares of common stock. The warrants, originally issued in May 2024 with a $4.35 exercise price, will now be exercised at $2.27 per share, generating approximately $0.7 million in gross proceeds before fees.
In exchange for the immediate exercise, the company will issue new unregistered warrants to purchase 604,138 shares at $2.02 per share. Half of these new warrants have a five-year term, while the other half expire in eighteen months. The offering, with H.C. Wainwright & Co. as exclusive placement agent, is expected to close around February 27, 2025.
The proceeds will be used for working capital and general corporate purposes. The new warrants are being offered through private placement and the company will file a registration statement for the resale of shares issuable upon exercise.
GT Biopharma (NASDAQ: GTBP) ha annunciato accordi per l'esercizio di warrant esistenti per l'acquisto di 302.069 azioni ordinarie. I warrant, originariamente emessi a maggio 2024 con un prezzo di esercizio di $4,35, saranno ora esercitati a $2,27 per azione, generando circa $0,7 milioni in proventi lordi prima delle spese.
In cambio dell'esercizio immediato, la società emetterà nuovi warrant non registrati per l'acquisto di 604.138 azioni a $2,02 per azione. La metà di questi nuovi warrant ha una durata di cinque anni, mentre l'altra metà scade in diciotto mesi. L'offerta, con H.C. Wainwright & Co. come agente di collocamento esclusivo, dovrebbe chiudersi intorno al 27 febbraio 2025.
I proventi saranno utilizzati per il capitale circolante e scopi aziendali generali. I nuovi warrant sono offerti tramite collocamento privato e la società presenterà una dichiarazione di registrazione per la rivendita delle azioni emettibili all'esercizio.
GT Biopharma (NASDAQ: GTBP) ha anunciado acuerdos para el ejercicio de warrants existentes para la compra de 302,069 acciones ordinarias. Los warrants, emitidos originalmente en mayo de 2024 con un precio de ejercicio de $4.35, se ejercitarán ahora a $2.27 por acción, generando aproximadamente $0.7 millones en ingresos brutos antes de comisiones.
Como contraprestación por el ejercicio inmediato, la empresa emitirá nuevos warrants no registrados para la compra de 604,138 acciones a $2.02 por acción. La mitad de estos nuevos warrants tiene un plazo de cinco años, mientras que la otra mitad expirará en dieciocho meses. Se espera que la oferta, con H.C. Wainwright & Co. como agente de colocación exclusivo, se cierre alrededor del 27 de febrero de 2025.
Los ingresos se utilizarán para capital de trabajo y propósitos corporativos generales. Los nuevos warrants se están ofreciendo a través de colocación privada y la empresa presentará una declaración de registro para la reventa de las acciones que se emitan al ejercicio.
GT Biopharma (NASDAQ: GTBP)는 기존 워런트를 행사하여 302,069주를 구매하기 위한 계약을 발표했습니다. 이 워런트는 2024년 5월에 발행되었으며, 행사 가격은 $4.35였으나 이제 주당 $2.27에 행사될 예정이며, 수수료를 제외하고 약 $0.7백만의 총 수익을 생성할 것입니다.
즉각적인 행사에 대한 대가로, 회사는 주당 $2.02에 604,138주를 구매하기 위한 새로운 비등록 워런트를 발행할 것입니다. 이 새로운 워런트의 절반은 5년의 기간을 가지고 있으며, 나머지 절반은 18개월 후에 만료됩니다. H.C. Wainwright & Co.가 독점 배급 대리인으로 참여하는 이 제안은 2025년 2월 27일경에 마감될 것으로 예상됩니다.
수익금은 운영 자본 및 일반 기업 목적에 사용될 것입니다. 새로운 워런트는 사모 배급을 통해 제공되며, 회사는 행사 시 발행 가능한 주식의 재판매를 위한 등록 신청서를 제출할 것입니다.
GT Biopharma (NASDAQ: GTBP) a annoncé des accords pour l'exercice de warrants existants permettant d'acheter 302,069 actions ordinaires. Les warrants, initialement émis en mai 2024 avec un prix d'exercice de 4,35 $, seront désormais exercés à 2,27 $ par action, générant environ 0,7 million $ de produits bruts avant frais.
En échange de l'exercice immédiat, la société émettra de nouveaux warrants non enregistrés pour l'achat de 604,138 actions à 2,02 $ par action. La moitié de ces nouveaux warrants a une durée de cinq ans, tandis que l'autre moitié expire dans dix-huit mois. L'offre, avec H.C. Wainwright & Co. en tant qu'agent de placement exclusif, devrait se clôturer aux alentours du 27 février 2025.
Les produits seront utilisés pour le fonds de roulement et des fins générales de l'entreprise. Les nouveaux warrants sont offerts par le biais d'un placement privé et la société déposera une déclaration d'enregistrement pour la revente des actions pouvant être émises lors de l'exercice.
GT Biopharma (NASDAQ: GTBP) hat Vereinbarungen über die Ausübung bestehender Warrants zum Kauf von 302.069 Stammaktien bekannt gegeben. Die Warrants, die ursprünglich im Mai 2024 mit einem Ausübungspreis von 4,35 $ ausgegeben wurden, werden nun zum Preis von 2,27 $ pro Aktie ausgeübt, was vor Gebühren etwa 0,7 Millionen $ an Bruttoeinnahmen generiert.
Im Gegenzug für die sofortige Ausübung wird das Unternehmen neue nicht registrierte Warrants zum Kauf von 604.138 Aktien zu einem Preis von 2,02 $ pro Aktie ausgeben. Die Hälfte dieser neuen Warrants hat eine Laufzeit von fünf Jahren, während die andere Hälfte in achtzehn Monaten abläuft. Die Platzierung, mit H.C. Wainwright & Co. als exklusivem Platzierungsagenten, wird voraussichtlich um den 27. Februar 2025 abgeschlossen.
Die Einnahmen werden für Betriebskapital und allgemeine Unternehmenszwecke verwendet. Die neuen Warrants werden über eine Privatplatzierung angeboten, und das Unternehmen wird eine Registrierungsanmeldung für den Wiederverkauf der bei Ausübung ausgebbaren Aktien einreichen.
- Secured $0.7M in immediate funding
- Original warrants exercised at $2.27 vs original $4.35 price point
- Potential dilution from additional 604,138 shares via new warrants
- New warrants priced at $2.02, lower than current exercise price
- Additional registration costs for new warrant shares
Insights
GT Biopharma's warrant exercise agreement reveals significant financial maneuvering that merits close investor attention. The company is generating approximately
The critical detail here is the substantial discount being offered - these warrants originally had an exercise price of
Even more telling is the issuance of new warrants for twice the number of shares (604,138 vs 302,069) at an exercise price of
- It creates immediate potential dilution of approximately
25% relative to the company's current market cap - The structure incentivizes immediate exercise of the new warrants, which would further dilute existing shareholders
- It suggests the company expects continued downward pressure on share price
For context, this
The involvement of H.C. Wainwright as placement agent for such a small offering further signals that GT Biopharma may be struggling to secure more favorable financing terms. Small-cap biotechs typically require substantial capital to fund clinical trials, and this transaction's structure suggests options and potentially dwindling cash reserves.
Existing shareholders should recognize this as a defensive financial move that prioritizes immediate capital needs over long-term shareholder value. While securing working capital is essential for continuing operations, the terms reflect significant concessions that typically indicate financial strain rather than strategic positioning.
SAN FRANCISCO, CALIFORNIA, Feb. 25, 2025 (GLOBE NEWSWIRE) -- GT Biopharma, Inc. (the “Company”) (NASDAQ: GTBP), a clinical stage immuno-oncology company focused on developing innovative therapeutics based on the Company's proprietary TriKE® natural killer (“NK”) cell engager platform, today announced that it has entered into definitive agreements for the exercise of certain existing warrants to purchase an aggregate of 302,069 shares of its common stock having an exercise price of
H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.
In consideration for the immediate exercise of the existing warrants for cash at an exercise price of
The offering is expected to close on or about February 27, 2025, subject to satisfaction of customary closing conditions. The Company intends to use the net proceeds from the offering for working capital and other general corporate purposes.
The new warrants described above are being offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Regulation D promulgated thereunder and, along with the shares of common stock issuable upon exercise of the new warrants, have not been registered under the Securities Act, or applicable state securities laws. Accordingly, the new warrants issued in the private placement and the shares of common stock underlying the new 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 and such applicable state securities laws. The Company has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock issuable upon the exercise of the new warrants.
This press release does not constitute an offer to sell or a 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 GT Biopharma, Inc.
GT Biopharma, Inc. is a clinical stage biopharmaceutical company focused on the development and commercialization of immuno-oncology therapeutic products based on our proprietary TriKE® NK cell engager platform. Our TriKE® platform is designed to harness and enhance the cancer killing abilities of a patient’s immune system’s natural killer cells. GT Biopharma has an exclusive worldwide license agreement with the University of Minnesota to further develop and commercialize therapies using TriKE® technology. For more information, please visit gtbiopharma.com.
Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking statements" regarding future events and our future results. All statements other than statements of historical facts are statements that could be deemed to be forward-looking statements. These statements, including, but not limited to, statements regarding the completion of the offering, the satisfaction of customary closing conditions related to the offering and the anticipated use of proceeds therefrom, are based on current expectations, estimates, forecasts, and projections about the markets in which we operate and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "targets," "goals," "projects", "intends," "plans," "believes," "seeks," "estimates," "endeavors," "strives," "may," or variations of such words, and similar expressions are intended to identify such forward-looking statements. Readers are cautioned that these forward-looking statements are subject to a number of risks, uncertainties and assumptions that are difficult to predict, estimate or verify. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Such risks and uncertainties include those factors described in our most recent annual report on Form 10-K, as such may be amended or supplemented by subsequent quarterly reports on Form 10-Q, or other reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made only as of the date hereof, and we undertake no obligation to publicly release the result of any revisions to these forward-looking statements, except as required by law. For more information, please refer to our filings with the Securities and Exchange Commission.
TriKE® is a registered trademark owned by GT Biopharma, Inc.
Investor Relations Contact:
LifeSci Advisors
Corey Davis, Ph.D.
cdavis@lifesciadvisors.com
212-915-2577
FAQ
What is the size and price of GT Biopharma's warrant exercise agreement?
How many new warrants will GTBP issue and at what price?
What are the terms of GTBP's new warrant offering?
When is the expected closing date for GTBP's warrant exercise offering?
