Tempest Therapeutics Inc. (NASDAQ:TPST) shares tumbled 12.9% in premarket trading on Tuesday after the biotech firm announced a registered direct offering aimed at raising roughly $4.25 million.

The company said it has signed a definitive agreement with a single healthcare-focused institutional investor to issue 1,172,414 shares of common stock (or equivalent securities) at a price of $3.625 per share, structured as an at-the-market offering in accordance with Nasdaq regulations.

In addition, Tempest will issue—through a simultaneous private placement—short-term unregistered warrants allowing the purchase of up to 1,172,414 shares at an exercise price of $3.50. These warrants become exercisable immediately and will remain valid for 18 months following the effectiveness of the resale registration statement.

Should all warrants be exercised for cash, Tempest stands to bring in an extra $4.1 million in gross proceeds. H.C. Wainwright & Co. is acting as the exclusive placement agent for the transaction.

Tempest, a clinical-stage company developing first-in-class targeted and immune-mediated oncology treatments, said it plans to use the funds primarily for working capital and general corporate needs.

The offering is expected to close on or around November 25, 2025, pending customary conditions.

Tempest Therapeutics stock price

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.