Tempest Therapeutics announces $4.6 million registered direct offering

BRISBANE, Calif. - Tempest Therapeutics, Inc. (NASDAQ:TPST), currently trading at $8.88 and showing a remarkable 28.79% return over the past week according to InvestingPro, has entered into a definitive agreement with a single institutional investor for a registered direct offering of 739,000 shares of common stock at $6.25 per share, according to a press release statement issued Wednesday.

The clinical-stage biotechnology company, with a market capitalization of $32.7 million, expects to raise approximately $4.6 million in gross proceeds before deducting placement agent fees and other expenses. The offering is anticipated to close on or about Thursday, subject to customary closing conditions.

H.C. Wainwright & Co. is serving as the exclusive placement agent for the transaction.

Tempest plans to use the net proceeds primarily to support its previously announced strategic alternative process and for working capital and general corporate purposes.

The offering is being conducted pursuant to a shelf registration statement on Form S-3 filed with the Securities and Exchange Commission on July 19, 2024, as amended on January 24, 2025, which became effective on January 27, 2025.

Tempest Therapeutics develops small molecule product candidates with tumor-targeted and immune-mediated mechanisms to treat various cancers. The company’s programs range from early research to later-stage investigation in randomized global studies.

The company’s most recent quarterly report filed with the SEC on May 13, 2025, indicated concerns about its ability to continue as a going concern. InvestingPro analysis reveals the company is quickly burning through cash, despite maintaining more cash than debt on its balance sheet. With 8 additional exclusive ProTips and comprehensive financial metrics available, investors can gain deeper insights into TPST’s financial health through InvestingPro’s advanced analytics platform.

In other recent news, Tempest Therapeutics, Inc. announced the termination of its automatic teller machine (ATM) prospectus supplement with Jefferies LLC, halting further sales of its common stock under the existing Sales Agreement. This decision, filed with the SEC, marks a significant corporate action for the company. Additionally, Tempest Therapeutics has received Orphan Drug Designation from both the European Medicines Agency and the U.S. Food and Drug Administration for its cancer treatment drug, amezalpat, aimed at treating hepatocellular carcinoma. The designation could streamline the development process by providing regulatory incentives. Tempest also regained compliance with Nasdaq’s minimum bid price requirement, a key step in maintaining its listing on the exchange. Furthermore, the FDA granted Orphan Drug Designation to Tempest’s drug TPST-1495 for Familial Adenomatous Polyposis, which offers benefits such as market exclusivity and tax credits. The company plans to begin a Phase 2 study for TPST-1495, funded by the National Cancer Institute, with results expected in 2026. These developments highlight Tempest’s ongoing efforts to advance its clinical programs and secure regulatory approvals.

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