Tevogen Bio Reports Series A-1 Preferred Stock Investment at $10 Conversion Price

WARREN, N.J., March 28, 2024 (GLOBE NEWSWIRE) -- Tevogen Bio Holdings ('Tevogen Bio') (Nasdaq: TVGN), a clinical-stage specialty immunotherapy biotech pioneer developing off-the-shelf, genetically unmodified T cell therapeutics in virology, oncology, and neurology, has entered into a securities purchase agreement with an existing investor pursuant to which the investor agreed to purchase shares of newly designated Series A-1 Preferred Stock of the Company in lieu of Series A Preferred Stock that the investor earlier agreed to purchase, for an aggregate purchase price of $6.0 million.

“Tevogen Bio’s precision T cell platform, ExacTcell, and its AI initiative have the potential to develop much-needed new class of off-the-shelf cell therapies to address the unmet need for large patient populations in Long COVID, oncology, virology, and neurology. The company’s highly cost-efficient business model and rapid progress since inception in 2020 are unprecedented and reinforce our confidence in the leadership's deep understanding of the biopharma market,” commented the prominent physician and investor Dr. Manmohan Patel, MD. “Our continued support and decision to increase the conversion price by sixty percent of the current equity investment is a reflection of our confidence in Tevogen’s highly promising commercial success,” added Dr. Patel.

“We’re fortunate to have a long-term investment partner who shares the business acumen that sustainability and commercial success in the forthcoming era of medicine will rely on ensuring patient accessibility through advanced science, and innovative business models,” remarked the founder and CEO Dr. Ryan Saadi, MD, MPH, Tevogen Bio.

The shares of Series A-1 Preferred Stock will be issued in the first quarter and will be convertible at a conversion price of $10.00, as opposed to the $4.00 conversion price of the Series A Preferred Stock, into a total of 600,000 shares of the Company’s common stock at the election of the holder. The Series A-1 Preferred Stock is subject to a call right providing the Company the right to call the stock if the volume weighted average price of the common stock for the 20 days prior to delivery of the call notice is greater than $5.00 per share and there is an effective resale registration statement on file covering the underlying common stock. The Series A-1 Preferred Stock is non-voting, has no mandatory redemption, carries an annual 5% cumulative dividend, increasing by 2% each year, with a cap of 12% per year.