GT Biopharma Secures $7.45M via Convertible Preferred Stock with Full Ratchet Protection
GTBP has more than doubled off its 52-week low of $4.91 on elevated volume (10× avg).
Summary
GT Biopharma announced a $7.45M private placement of convertible preferred stock with warrants and a $30M Greenshoe option, carrying full ratchet price protection and a $6.10 conversion price.
Key Events · Financing and Capital Events · GTBP
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Private Placement of Convertible Preferred Stock
GT Biopharma entered into a Securities Purchase Agreement to sell up to 8,277.778 shares of Series M 10% Convertible Preferred Stock with an aggregate stated value of $8,277,778 for a purchase price of $7,450,000.
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Warrants and Greenshoe Option
Purchasers receive Common Warrants to purchase shares equal to 100% of the conversion shares, plus Vesting Warrants tied to a Greenshoe Right allowing up to $33,333,333 in additional preferred stock for $30,000,000.
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Full Ratchet Price Protection
The Preferred Stock and Warrants have full ratchet price protection, meaning the conversion price resets to any lower price in future dilutive issuances. Initial conversion price is $6.10, with a potential floor of $1.282 if Nasdaq requires one.
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Shareholder Approval Required
The company must obtain shareholder approval to issue more than 19.99% of outstanding shares, and all officers and directors have signed voting agreements to support the proposal.
Analysis · GTBP · Life Sciences
On September 14, 2026, GT Biopharma entered into a Securities Purchase Agreement to sell up to $8.28M in Series M 10% Convertible Preferred Stock for $7.45M, with warrants and a Greenshoe option for up to $30M more. The deal carries full ratchet price protection and a conversion price of $6.10, which is below the current stock price of $12.73. This highly dilutive financing structure could significantly increase the share count if the stock price falls, and it comes just days after the company completed a 1-for-25 reverse stock split to maintain Nasdaq listing. The terms suggest the company is in a weak negotiating position and needs capital urgently, but the financing also provides runway for its clinical programs.
How filings like this one have moved
In the 30 days to Sep 17, 2026, 35.7% of the 1179 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.44%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, GTBP was trading at $12.73 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $21M. The 52-week trading range was $4.91 to $34.25. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.