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Tempest Therapeutics, Inc. (NASDAQ:TPST), a pharmaceutical company with a market capitalization of $32.7 million, announced today that it has terminated its automatic teller machine (ATM) prospectus supplement dated February 6, 2025, concerning the sale of its common stock. According to InvestingPro analysis, the company appears to be overvalued at its current trading price of $8.88. The decision to suspend and terminate the prospectus was communicated to Jefferies LLC, the financial services company that had been engaged to facilitate these transactions.
The ATM Prospectus was part of the Open Market Sale AgreementSM dated June 20, 2024, between Tempest Therapeutics and Jefferies. This agreement allowed for the sale of shares of the company’s common stock from time to time. While the company maintains a healthy current ratio of 1.7 and holds more cash than debt on its balance sheet, InvestingPro data indicates it has been quickly burning through its cash reserves. With the termination of the ATM Prospectus, the company has stated that no further sales of its securities will occur under the Sales Agreement until a new prospectus, prospectus supplement, or registration statement is filed.
Despite the termination of the ATM Prospectus, all other aspects of the Sales Agreement remain effective. The original Sales Agreement was filed with the Securities and Exchange Commission (SEC) as an exhibit to the company’s Form 8-K on June 20, 2024.
This move comes as the latest corporate action by Tempest Therapeutics, which is based in Brisbane, California, and operates under the ticker (NASDAQ:TPST) on The Nasdaq Stock Market LLC. The company has not disclosed the reasons for the suspension and termination of the ATM Prospectus.
The information regarding this corporate action is based on a press release statement filed with the SEC. Despite the company’s stock showing strong recent momentum with a 28.79% gain over the past week, it has experienced a significant decline of 78.04% over the past year. For more detailed financial insights and additional ProTips about TPST, visit InvestingPro.
In other recent news, Tempest Therapeutics has made significant strides in its clinical programs. The company announced that the European Medicines Agency granted Orphan Drug Designation to its cancer treatment drug, amezalpat, for hepatocellular carcinoma, following similar designations from the U.S. FDA. This drug showed promising results in a global Phase 1b/2 clinical study, demonstrating a six-month improvement in median overall survival. Additionally, Tempest received Orphan Drug Designation from the FDA for TPST-1495, aimed at treating Familial Adenomatous Polyposis, marking a critical step in advancing its clinical program. Meanwhile, Tempest regained compliance with Nasdaq’s minimum bid price requirement, securing its listing on the exchange. However, H.C. Wainwright downgraded Tempest’s stock from Buy to Neutral, citing macroeconomic challenges rather than company performance. Despite the downgrade, the company is exploring strategic alternatives to advance its oncology assets. These developments highlight Tempest’s ongoing efforts to address unmet medical needs and maintain its market position.
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