Tevogen Bio Holdings Inc. (NASDAQ:TVGN), a biotechnology firm specializing in biological products, announced on Monday that it has entered into a securities purchase agreement with an investor associated with an existing shareholder. The deal involves the sale of Series C Preferred Stock totaling $6 million.
The agreement, dated August 21, 2024, stipulates that the investor, linked to Dr. Manmohan Patel, an existing investor and beneficial owner of more than 5% of Tevogen's common stock, purchased 600 shares of Series C Preferred Stock.
The preferred stock is convertible to common stock at a rate based on a 30-day volume-weighted average, subject to a minimum price, and comes with a 7.5% annual dividend.
As per the terms, the conversion right activates six months post-issuance and is limited to ensure the investor does not exceed a 9.9% ownership post-conversion, unless waived in writing. The company retains a call option on the stock after five years from the issue date.
In related news, Tevogen announced the resignation of director Suren Ajjarapu effective August 21, 2024, citing no disagreement with the company's operations or practices.
Additionally, Tevogen has amended its articles of incorporation to incorporate the rights and preferences of the Series C Preferred Stock, which ranks junior to Series A and A-1 Preferred Stock but senior to common stock concerning dividend rights and rights upon liquidation.
The sale of the Series C Preferred Stock is exempt from registration under Section 4(a)(2) of the Securities Act of 1933, as amended, and is part of Tevogen's efforts to strengthen its financial position without resorting to public offering.
This strategic move allows Tevogen to raise capital from an existing stakeholder, reinforcing its financial stability and potentially fueling further growth and development in its biotechnology ventures. The information is based on a press release statement.
In other recent news, Tevogen Bio Holdings Inc. has secured substantial financial agreements that could significantly bolster its capital resources. The company disclosed a $36 million unsecured line of credit from The Patel Family, LLP, alongside a potential private equity placement (PIPE) arrangement.
The credit facility permits Tevogen Bio to draw up to $1 million monthly, with the possibility of drawing the first amount in June 2024. Furthermore, The Patel Family, LLP has the option to invest $14 million in Tevogen Bio’s common stock, with the possibility of increasing this investment to the total undrawn portion of the credit facility.
In addition to the financial agreements, Tevogen Bio has made significant strides in its COVID-19 therapy, TVGN 489, demonstrating efficacy against new SARS-CoV-2 variants. The therapy's Cytotoxic CD8+ T lymphocytes (CTLs) have remained active against over 95% of the FLiRT strain, including the dominant KP.2 variant in the United States. A phase I study released by Tevogen also showed a substantial reduction in viral load within two weeks of treatment with TVGN 489.
In other company news, Tevogen announced the appointment of William Keane as Vice President of Strategic Initiatives. Keane will be responsible for aligning company policies with regulatory standards and assisting in the acquisition of laboratory space to advance operational objectives.
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