Tempest Therapeutics (TPST) investor relations material

Executive summary

• The annual meeting will vote on six key proposals, including a major asset acquisition, board election, executive compensation, auditor ratification, a rights plan, and an equity plan amendment.

• The asset purchase agreement involves acquiring CAR-T cell therapy assets from Erigen and Factor Bioscience, with 8,268,495 shares issued as consideration, and a funding commitment of up to $20 million for 18 months post-closing.

• The transaction is structured as a reorganization under Section 368(a)(1)(C) of the Code, with the goal of expanding the pipeline and securing financial runway.

• A fairness opinion from MTS Securities concluded the purchase price is fair from a financial perspective.

Voting matters and shareholder proposals

• Proposals include: electing Geoff Nichol as director, advisory vote on executive compensation, ratification of Ernst & Young as auditor, approval of a stockholder rights plan, approval of the asset purchase and share issuance, and amendment to the 2023 Equity Incentive Plan to add 1,410,000 shares.

• Approval of the asset purchase and share issuance is required under Nasdaq rules due to the size and change of control implications.

• A special dividend of warrants will be issued to pre-closing shareholders if the asset purchase is approved.

Board of directors and corporate governance

• The board is currently five members, with a majority independent; after the transaction, Dr. Angel will become CEO and join the board, and Geoff Nichol will resign.

• Board committees (Audit, Compensation, Nominating & Governance, Science & Technology) will remain in place.

• The board regularly reviews its leadership structure and risk oversight responsibilities.