Form 4: Versant Venture Capital Sells Shares of Tempest Therapeutics

Versant Venture Capital VI, L.P. and related entities sold shares of Tempest Therapeutics (TPST) in two transactions on August 8 and August 12, 2024.

Summary

• Versant Venture Capital VI, L.P. sold 400,000 shares of Tempest Therapeutics (TPST) common stock on August 8, 2024, at a weighted average price of $1.3501 per share.
• The prices for the August 8th sale ranged from $1.35 to $1.375.
• Following this transaction, Versant Venture Capital VI, L.P. directly held 597,940 shares.
• On August 12, 2024, Versant Venture Capital VI, L.P. sold an additional 387,999 shares at a weighted average price of $1.1005 per share.
• The prices for the August 12th sale ranged from $1.10 to $1.13.
• After the second transaction, Versant Venture Capital VI, L.P. directly held 209,941 shares.
• Versant Venture Capital IV, L.P., Versant Side Fund IV, L.P., and Versant Vantage II, L.P. indirectly hold 1,171,094, 7,377, and 2,118,644 shares respectively.
• The reporting persons include 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 Ventures IV, LLC, Versant Venture Capital IV, L.P., and Versant Side Fund IV, L.P.

Sentiment

Score: 3

Explanation: The sentiment is negative due to the significant share sales by a major shareholder, which could indicate a lack of confidence in the company's future performance or simply a distribution of assets to their limited partners. This selling pressure could negatively impact the stock price.

Negatives

• Versant Venture Capital, a significant shareholder, has reduced its direct holdings in Tempest Therapeutics through these sales.

Risks

• Continued selling pressure from major shareholders like Versant Venture Capital could negatively impact the stock price.
• The weighted average sale prices indicate a potential decrease in the perceived value of the stock between August 8 and August 12.

Industry Context

Sales by major shareholders are often monitored closely by the market as they can indicate the shareholder's sentiment about the company's future prospects. This is especially relevant in the biotech industry where clinical trial results and regulatory approvals can significantly impact stock prices.

Comparison to Industry Standards

• It's common for venture capital firms to distribute shares of their portfolio companies to their limited partners or sell shares on the open market after a certain holding period.
• The impact of these sales on the stock price depends on the size of the transaction relative to the company's market capitalization and trading volume.
• Comparable companies in the biotech sector often experience similar selling patterns from early investors after an IPO or significant milestone.

Stakeholder Impact

• Shareholders may experience a decrease in stock value due to the selling pressure.
• The company's reputation could be affected if the market interprets the sales negatively.

Key Dates