Form 4: In8bio Insider Transactions: Bios Funds Exchange Warrants for Pre-Funded Warrants

Bios Clinical Opportunity Fund exchanges existing warrants for pre-funded warrants and cash in a private placement with In8bio, Inc., resulting in adjustments to beneficial ownership by related entities and individuals.

Summary

• On May 2, 2025, Bios Clinical Opportunity Fund, LP (Bios COF) engaged in a warrant exchange agreement with In8bio, Inc.
• Bios COF purchased 1,148,482 pre-funded warrants for one share of common stock.
• In exchange, Bios COF surrendered 574,241 Series A warrants, 574,241 Series B warrants, and paid $204,774.34 in cash.
• The pre-funded warrants have an exercise price of $0.0001 per share and are immediately exercisable.
• Leslie W. Kreis, Jr., along with various Bios Funds and related entities, are reporting these changes in beneficial ownership.
• As a result of these transactions, the reporting persons are no longer subject to Section 16 as of May 2, 2025.

Sentiment

Score: 7

Explanation: The document reflects a routine financial transaction. The sentiment is neutral to slightly positive as it simplifies the capital structure and provides a small cash infusion.

Positives

• The warrant exchange simplifies the capital structure of In8bio, Inc.
• The company receives $204,774.34 in cash as part of the transaction.
• The reporting persons are no longer subject to Section 16 as of May 2, 2025.

Future Outlook

The document does not contain specific forward-looking statements regarding the company's future performance beyond the immediate impact of the warrant exchange.

Industry Context

Warrant exchange agreements are a relatively common mechanism for companies to manage their capital structure and provide additional funding, particularly in the biotech industry where In8bio operates. This transaction is a private placement, indicating a direct negotiation between the company and a specific investor.

Comparison to Industry Standards

• Similar warrant exchange agreements are often seen in the biotech industry, where companies like In8bio frequently use warrants as part of their financing strategies.
• The terms of this exchange, such as the nominal exercise price of the pre-funded warrants, are not uncommon in private placements designed to provide immediate capital to the company.
• Comparable companies might include other clinical-stage biotech firms that have utilized warrant offerings and subsequent exchanges to manage their cash flow and investor relations.

Related Party Transactions

• The transaction involves Bios Clinical Opportunity Fund, LP, which has relationships with directors and significant shareholders of In8bio, Inc.

Stakeholder Impact

• The warrant exchange may have a minor dilutive effect on existing shareholders due to the potential exercise of the pre-funded warrants.
• The cash infusion benefits the company's financial position.

Key Dates

Keywords

In8bio, INAB, Bios Clinical Opportunity Fund, Warrant Exchange Agreement, Pre-Funded Warrants, Series A Warrants, Series B Warrants, Beneficial Ownership, Insider Trading, Form 4, Leslie W. Kreis, Bios Funds