Decoy Therapeutics Closes $3.85M Warrant Inducement, Issues 2.37M New Warrants
DCOY sits 83% above its 52-week low of $2.18 on elevated volume (11× avg).
Summary
Decoy Therapeutics raised $3.85 million through a warrant inducement with Armistice Capital, issuing 2.37 million new warrants exercisable immediately at $3.25 per share. The transaction provides near-term runway but creates significant future dilution.
Key Events · Financing and Capital Events · DCOY
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Warrant Inducement Closes
Armistice Capital exercised 1,184,434 Series B Milestone Warrants at the reduced price of $3.25 (down from $5.91), generating $3.85 million in gross proceeds.
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New Warrants Issued
The company issued 2,368,868 new warrants (200% coverage) at a $3.25 exercise price, exercisable immediately and expiring in 5 years—no stockholder approval required.
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Exercise Price Reduction
Series A and Series C Milestone Warrants were also reduced from $5.91 to $3.25 per share, increasing the likelihood of future exercises.
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Going Concern Context
This follows the August 10-Q reporting a $4.6M H1 loss and going concern doubts; proceeds are intended for working capital.
Analysis · DCOY · Life Sciences
A $3.85 million warrant inducement with Armistice Capital Master Fund has closed, providing critical capital for a company that reported a $4.6 million H1 loss and going concern doubts in August. The transaction reduced the exercise price of Series B Milestone Warrants from $5.91 to $3.25 per share, and in exchange, 2,368,868 new warrants were issued—200% of the exercised shares—also at $3.25, exercisable immediately without stockholder approval. While the raise offers near-term runway, the 200% warrant coverage creates substantial future dilution overhang. A corrective press release clarifying immediate exercisability (not requiring stockholder approval) is a material governance disclosure that changes the dilution timeline.
How filings like this one have moved
In the 30 days to Oct 2, 2026, 29.4% of the 1637 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.57%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, DCOY was trading at $3.99 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $2.5M. The 52-week trading range was $2.18 to $55.92. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.