Decoy Therapeutics closes $3.85 million warrant inducement transaction

Decoy Therapeutics Inc. (NASDAQ: DCOY) entered into a warrant inducement letter agreement on September 22, 2026 with a holder of its outstanding Series A, Series B and Series C milestone-based common warrants, all originally issued June 29, 2026. Under the deal, the holder agreed to exercise for cash, in full, the Series B Milestone Warrants to purchase an aggregate of 1,184,434 shares of the company's common stock.¹

The company agreed to reduce the exercise price of the Series B warrants from $5.91 per share to $3.25 per share, and also cut the exercise price of the outstanding Series A and Series C Milestone Warrants to $3.25 per share, leaving other terms of those warrants unchanged.¹ The Series B warrants were exercised on September 22, 2026, with the transaction closing the following day, and the exercise generated aggregate gross proceeds of approximately $3.85 million before deducting placement agent fees and other expenses.¹ The company said it plans to direct the net proceeds toward working capital and other corporate needs, per its stated intention.¹

In exchange for the immediate exercise, Decoy issued new unregistered warrants on September 23, 2026 to purchase up to 2,368,868 shares, equal to 200% of the number of shares underlying the exercised Series B warrants.¹ These new warrants carry a $3.25 exercise price, are exercisable immediately, expire on their fifth anniversary, and include standard anti-dilution and cashless exercise terms along with a 9.99% beneficial ownership cap.¹ Decoy noted that the issuance and exercise of the new warrants do not require stockholder approval.¹

Curvature Securities LLC served as placement agent for the transaction. Decoy first issued a press release on the deal, then followed with a second release correcting earlier language about whether the new warrants required stockholder approval, confirming they do not and are immediately exercisable.