Hepion Pharmaceuticals (HEPA) Registration Filing summary

Company overview and business model

• Biopharmaceutical company focused on developing therapies for chronic liver diseases, including NASH and viral hepatitis.

• Lead asset was rencofilstat, a cyclophilin inhibitor targeting fibrosis and inflammation in liver disease.

• Strategic restructuring in December 2023 to preserve capital, including a $0.7 million restructuring charge and wind-down of the ASCEND-NASH clinical trial due to insufficient funding.

• Merger agreement with Pharma Two B Ltd. was terminated in December 2024; related notes became due and are to be repaid from offering proceeds.

Financial performance and metrics

• As of September 30, 2024, reported a stockholders' deficit of ($406,685).

• Historical net tangible book value per share as of September 30, 2024 was ($0.06); post-offering, as adjusted net tangible book value would be $0.32 per share, with immediate dilution of $0.24 per share to new investors.

• Net proceeds from the offering estimated at $7.1 million, assuming full sale at $0.56 per share.

Use of proceeds and capital allocation

• Proceeds will be used to repay $2.9 million in principal and $24,000 in accrued interest on notes due December 31, 2024.

• Remaining funds allocated to general corporate purposes, including working capital, operating expenses, and potential in-licensing or acquisitions.

• Management retains broad discretion over use of proceeds.