Gossamer Bio (GOSS) investor relations material

Executive summary

• Special Meeting called to address proposals related to a major Exchange Offer, recapitalizing $200M of 5.00% Convertible Senior Notes due 2027 into new 7.50% Convertible Senior Secured First Lien Notes due 2030, new shares, and warrants, aiming to strengthen the capital structure and balance sheet.

• Early settlement saw 90.5% of notes tendered, resulting in significant dilution to existing shareholders, with noteholders potentially owning up to 78.7% of outstanding shares post-conversion and warrant exercise.

• Board unanimously recommends voting in favor of all proposals, with major noteholders entering voting agreements to support the proposals.

Voting matters and shareholder proposals

• Proposal 1: Approve issuance of shares exceeding 20% of pre-offer outstanding stock upon conversion of new notes and exercise of warrants, as required by Nasdaq Rule 5635(d).

• Proposal 2: Approve amendment and restatement of the 2019 Incentive Award Plan to increase shares available for equity awards.

• Proposal 3: Approve increase in authorized common stock from 700M to 4B shares to support conversions, warrant exercises, and incentive plans.

• Proposal 4: Approve 30 alternate amendments for a reverse stock split at ratios from 1-for-10 to 1-for-150, with proportional reduction in authorized shares.

• Proposal 5: Approve adjournment of the meeting if more time is needed to solicit votes.

Board of directors and corporate governance

• Board and compensation committee are composed of independent directors, with no interlocks or insider participation.

• Board retains discretion to implement or abandon the reverse stock split and related amendments.