Nkgen biotech sees $2.5 million stock purchase by major shareholder

LAS VEGAS—NKGen Biotech, Inc. (NASDAQ:NKGN), currently trading at $0.30 and deemed overvalued according to InvestingPro analysis, reported a significant transaction involving its common stock. CFIC-2015 NV Family Investments, LLC, a major shareholder, completed the purchase of 19,669,552 shares of NKGen Biotech’s common stock at a price of $0.1271 per share. The total transaction amounted to $2.5 million, representing about 16% of the company’s current $15.2 million market capitalization.

The acquisition was executed on May 27, 2025, under a Stock Purchase Agreement dated May 14, 2025. The transaction increases CFIC-2015’s holdings to 21,752,885 shares. Andrew Cherng and Peggy Cherng, who collectively own 100% of CFIC-2015, were involved in this transaction. The deal comes as NKGen Biotech faces financial challenges, with InvestingPro data showing a weak financial health score and concerning liquidity metrics.

In addition to the stock purchase, NKGen Biotech issued a warrant to CFIC-2015, allowing the purchase of up to 39,339,103 shares of common stock at the same price of $0.1271 per share. This warrant is exercisable until May 27, 2030, further solidifying CFIC-2015’s potential stake in the company.

The transactions underscore the continued interest and investment by key stakeholders in NKGen Biotech, as the company progresses with its strategic initiatives.

In other recent news, NKGen Biotech has revised its loan agreement with East West Bank, extending the maturity date of a $5 million loan to January 15, 2027, and increasing the interest rate to 10% per annum. Additionally, the company secured a convertible loan for up to $5 million with AlpineBrook Capital GP I Limited, which includes an initial $1 million advance and an annual interest rate of 12%. The funds from this loan are earmarked for repaying existing senior secured debt with East West Bank. NKGen Biotech has issued a convertible promissory note, allowing the lender to convert the loan into common stock at $0.25 per share, and has already issued 333,333 shares of common stock and warrants to the lender. The company has also transitioned to trading on the OTC Markets after being delisted from the Nasdaq due to non-compliance with market value requirements. Despite this, NKGen Biotech’s leadership remains optimistic about its scientific progress and compliance with SEC reporting standards. The company plans to apply for trading on the OTCQX platform and aims to resume Nasdaq trading once it meets the necessary requirements. These developments highlight NKGen Biotech’s ongoing efforts to restructure its financial obligations and maintain regulatory compliance.

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