SCHEDULE 13D/A: Versant Funds Report Diluted Stake in Tempest Therapeutics Following Share Sales

Versant Venture Capital and related entities have filed an amended Schedule 13D, disclosing a decrease of over one percent in their aggregate beneficial ownership of Tempest Therapeutics, Inc. common stock due to dilution from the issuer's recent share sales.

Summary

• The filing is Amendment No. 5 to the Schedule 13D originally filed on May 9, 2022, by Versant Venture Capital VI, L.P., Versant Ventures VI GP, L.P., Versant Ventures VI GP-GP, LLC, Versant Vantage II, L.P., Versant Vantage II GP, L.P., Versant Vantage II GP-GP, LLC, Versant Venture Capital IV, L.P., Versant Side Fund IV, L.P., and Versant Ventures IV, LLC (collectively, the "Reporting Persons").
• The amendment updates the aggregate percentage of Common Stock owned by the Reporting Persons in Tempest Therapeutics, Inc. (Issuer).
• The decrease in ownership percentage is attributed to dilution caused by the Issuer's sales of additional shares of its Common Stock since the filing of Amendment No. 4 on August 12, 2024.
• The aggregate percentage ownership reported by the Reporting Persons decreased by over one percent (1%).
• As of January 30, 2025, there were 44,148,563 shares of Common Stock outstanding, as stated in the Issuer's prospectus supplement filed on February 6, 2025.
• The Reporting Persons collectively beneficially own 3,507,029 shares of Tempest Therapeutics Common Stock, representing approximately 7.94% of the outstanding shares.
• Specifically, Versant Venture Capital VI, L.P. and its related entities hold 209,914 shares (0.5%), Versant Vantage II, L.P. and its related entities hold 2,118,644 shares (4.8%), and Versant Venture Capital IV, L.P. and Versant Side Fund IV, L.P. and their related entity hold a combined 1,178,471 shares (2.7%).

Sentiment

Score: 4

Explanation: The sentiment is slightly negative for the Reporting Persons as their ownership stake has been diluted. While it's a factual disclosure, the decrease in percentage ownership is not a positive development for an existing investor's relative control or influence.

Negatives

• The Reporting Persons' aggregate percentage ownership in Tempest Therapeutics, Inc. decreased by over one percent (1%) due to dilution from the Issuer's sale of additional shares.

Risks

• Existing shareholders, including the Reporting Persons, face dilution of their ownership stake when the company issues and sells additional shares of Common Stock.

Future Outlook

This filing is a factual update on beneficial ownership and does not contain forward-looking statements or guidance from company management.

Industry Context

This Schedule 13D amendment reflects a routine disclosure of changes in significant beneficial ownership, often triggered by a company's capital-raising activities that dilute existing shareholders. Such filings are common in the biotechnology sector where companies frequently raise capital through equity offerings to fund research and development.

Stakeholder Impact

• Shareholders: Existing shareholders, including the Reporting Persons, have experienced dilution of their ownership percentage due to the issuance of new shares by Tempest Therapeutics, Inc.

Key Dates

Keywords

Tempest Therapeutics, Versant Venture Capital, Schedule 13D, Beneficial Ownership, Dilution, Common Stock, SEC Filing, Investment Fund, Biotechnology