GT Biopharma Implements Warrant Exercise Inducement Offering to Bolster Capital Position

On February 25, 2025, GT Biopharma, Inc. announced that it had entered into warrant exercise inducement letter agreements with certain warrant holders as part of a strategic financing initiative. Under the structured transaction, holders of existing warrants agreed to exercise their rights to purchase an aggregate of 302,069 shares of common stock at a reduced exercise price of $2.27 per share. This reduced price includes a $0.125 per warrant adjustment and facilitates the issuance of new inducement warrants.

In connection with the exercise, each warrant holder received one Series A and one Series B inducement warrant. The Series A inducement warrants, representing the right to purchase up to 302,069 shares of the Company’s common stock, are exercisable immediately upon issuance and carry a five-year term. The Series B inducement warrants are also exercisable immediately but have a shorter term of eighteen months. The transaction was executed as an at-market offering under Nasdaq rules.

The common stock issuable upon exercise of the existing warrants is registered for resale under a registration statement on Form S-1, which was declared effective by the Securities and Exchange Commission on June 28, 2024. GT Biopharma noted that the aggregate gross proceeds from the exercise, which totaled approximately $0.7 million before the deduction of placement agent fees and offering expenses, will be used to support working capital and other general corporate purposes.

Additionally, the filing indicated that the Series A and Series B inducement warrants, along with the underlying warrant shares, are being offered in a private placement relying on exemptions provided by Section 4(a)(2) of the Securities Act of 1933 and Rule 506, as well as similar state-level exemptions. As such, the warrants and underlying shares are not registered under the Securities Act and may not be offered or sold in the United States unless subsequently registered or exempted.

The transaction closed on February 26, 2025, and was documented by GT Biopharma’s Chief Financial Officer, Alan Urban, whose signature affirmed the Company’s commitment to optimizing its capital structure while providing additional incentives for its warrant holders.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read GT Biopharma’s 8K filing here.

GT Biopharma Company Profile

GT Biopharma, Inc, a clinical stage biopharmaceutical company, focuses on the development and commercialization of immuno-oncology products based on its proprietary Tri-specific Killer Engager (TriKE) fusion protein immune cell engager technology platform. It develops GTB-3550, a single-chain tri-specific recombinant fusion protein conjugate that is in Phase I clinical trial for the treatment of myelodysplastic syndromes, refractory/relapsed acute myeloid leukemia or advanced systemic mastocytosis, and CD33+ malignancies.