Tempest Therapeutics Inc. (NASDAQ: TPST) entered into an 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, generating approximately $2 million in gross proceeds.

The warrants were originally issued on November 26, 2025, with an exercise price of $3.50 per share. The warrant exercise transaction is expected to close on or about May 29, 2025, subject to customary closing conditions. H.C. Wainwright is serving as the exclusive placement agent for the transaction.

As part of the agreement, the company will issue new unregistered short-term warrants to purchase up to 2,344,828 shares of common stock at an exercise price of $1.73 per share. These new warrants will become exercisable upon stockholder approval and will expire two years following the initial issuance date.

If the new short-term warrants are fully exercised on a cash basis, they could generate an additional $4 million in gross proceeds for the company. The company stated it plans to use the net proceeds for working capital and general corporate purposes.

The clinical-stage biotechnology company develops CAR-T cell therapy product candidates for cancer treatment and is headquartered in Brisbane, California. The resale of shares from the existing warrant exercise has been registered under an effective Form S-1 registration statement.

The new short-term warrants and underlying shares have not been registered under the Securities Act of 1933 and may only be offered or sold pursuant to an effective registration statement or applicable exemption from registration requirements.