Alaunos Therapeutics completes $850,000 private placement of preferred stock

Published 26/06/2025, 13:56
Alaunos Therapeutics completes $850,000 private placement of preferred stock

Alaunos Therapeutics, Inc. (NASDAQ:TCRT) announced that it entered into a Subscription Agreement with certain purchasers for a private placement of Series A-2 Convertible Preferred Stock. The agreement was executed and closed on Tuesday. The micro-cap company, currently valued at $7.59 million, has seen its stock surge over 136% year-to-date, according to InvestingPro data.

According to a statement based on a SEC filing, the company issued and sold 850 shares of Series A-2 Convertible Preferred Stock at $1,000 per share, totaling $850,000 in aggregate proceeds. The preferred stock carries a stated value of $1,000 per share and entitles holders to a 10% annual dividend, payable in additional shares of Series A-2 Preferred Stock. This capital raise comes as the company faces financial challenges, with InvestingPro data showing negative EBITDA of $4.16 million in the last twelve months.

The Series A-2 Preferred Stock is convertible into common stock at an initial fixed conversion price of $4.49 per share, subject to proportional adjustments as outlined in the Certificate of Designation filed with the Secretary of State of Delaware on Tuesday. Holders of the preferred stock are entitled to vote with common shareholders on an as-converted basis, with each preferred share representing one vote for each share of common stock into which it could be converted.

The private placement was conducted pursuant to Section 4(a)(2) of the Securities Act of 1933 and Rule 506(b) of Regulation D. The securities offered have not been registered under the Securities Act or applicable state laws and may not be resold in the United States without registration or an applicable exemption.

The company amended its articles of incorporation to designate 1,000 shares of Series A-2 Preferred Stock in connection with this transaction.

This information is based on a press release statement and a Form 8-K filing with the Securities and Exchange Commission. Want deeper insights into Alaunos Therapeutics’ financial health and future prospects? InvestingPro offers 15+ additional exclusive tips and comprehensive financial metrics to help you make informed investment decisions.

In other recent news, Alaunos Therapeutics has raised approximately $2 million through a registered direct offering, with net proceeds expected to be around $1.9 million. The company plans to allocate these funds toward its obesity program and general corporate purposes. Additionally, Alaunos has completed a private placement of preferred stock, securing $500,000 in new capital from Watermill Asset Management. This issuance of Series A-1 Convertible Preferred Stock includes a 10% annual dividend, payable in additional shares, and offers conversion rights into common stock.

In corporate governance developments, Alaunos disclosed the resignation of Dr. Robert Hofmeister from its board of directors, effective April 15, 2025. The company indicated that the resignation was not due to disagreements over operations, policies, or practices. Investors are likely to be attentive to how Alaunos will fill the vacant board seat. These recent developments highlight Alaunos Therapeutics’ ongoing strategic and financial activities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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