Evogen Bio Holdings Inc. (NASDAQ: TVGN), operating under Tevogen Bio, a clinical-stage specialty immunotherapy biotech innovator based in Warren, N.J., experienced a significant change in its stock price dynamics. The company closed the trading day at $3.4000, up by $0.8500 or 33.33%, but witnessed a minor downturn in after-hours trading, settling at $3.3800, a decrease of $0.02 or 0.59%, as reported on March 28, 2024. Tevogen Bio is dedicated to advancing off-the-shelf, genetically unmodified T cell therapeutics across various domains, including virology, oncology, and neurology, aiming to fill the vast unmet needs in these areas.
On March 28, 2024, Tevogen Bio announced a strategic financial move, entering into a securities purchase agreement with an existing investor. This agreement involves the acquisition of newly designated Series A-1 Preferred Stock for an aggregate purchase price of $6.0 million, replacing the initially agreed purchase of Series A Preferred Stock. This decision underscores the confidence investors have in Tevogen Bio’s ExacTcell precision T cell platform and its AI-driven initiatives, which are poised to create a new class of accessible cell therapies for conditions like Long COVID, cancer, virological, and neurological disorders.
Dr. Manmohan Patel, a prominent physician and investor in Tevogen Bio, praised the company’s highly cost-efficient business model and rapid advancements since its inception in 2020, highlighting a strong belief in the company’s potential for commercial success. This optimism led to a significant decision to increase the conversion price by sixty percent from the current equity investment, reflecting a robust vote of confidence in Tevogen’s future.
Tevogen Bio’s founder and CEO, Dr. Ryan Saadi, expressed gratitude for the sustained partnership and shared vision with their investors, emphasizing the critical role of innovative science and business models in ensuring patient accessibility and commercial success in the evolving landscape of medicine.
The Series A-1 Preferred Stock, set for issuance in the first quarter, features a conversion price of $10.00—substantially higher than the $4.00 conversion price for the Series A Preferred Stock. It will be convertible into 600,000 shares of the company’s common stock at the holder’s discretion. Additionally, the stock includes a call right for the company, contingent on specific market price conditions, and offers a 5% cumulative dividend, annually increasing by 2%, capped at 12%, without mandatory redemption and carrying no voting rights.
This strategic financial restructuring and continued investor confidence in Tevogen Bio highlight its pioneering role in the immunotherapy space, leveraging its ExacTcell platform and AI initiatives to meet significant patient needs across various medical fields.
