AEON Biopharma has cut the exercise price on its outstanding two-year milestone warrants, a change that applies to all holders. Some holders have agreed to exercise their warrants at the lower price, with AEON expecting about $6.2 million in gross proceeds.
The warrants are due to expire on November 16, following an earlier-than-originally-expected expiration trigger tied to FDA feedback on the company’s ABP-450 program.
Key details
- The exercise price for shares issuable under the warrants fell to $0.20 from $0.3221. For holders choosing pre-funded warrants instead, the price fell to $0.1999 from $0.3220. Those pre-funded warrants retain a separate $0.0001 exercise price for the underlying shares.
- Holders representing at least 67% of the warrants agreed to the amendment. Under the warrants’ terms, the lower prices apply to all outstanding warrants, including those held by investors who did not sign the amendment.
- Some of the participating holders have agreed to exercise their warrants at the reduced prices. AEON expects to receive approximately $6.2 million in gross proceeds from those exercises.
- The amendment changes only the exercise prices. The number of shares or pre-funded warrants available upon exercise, and the expiration date, remain unchanged.
- The warrants were issued in July 2026 and were originally described as two-year warrants. Their expiration was accelerated after AEON reported on September 30 that FDA meeting minutes did not preclude advancing ABP-450 toward a Biologics License Application through the Section 351(k) biosimilar pathway. That feedback is not an FDA approval.
- Holders may exercise before the November 16 expiration. AEON had 71,517,020 common shares outstanding as of October 30; the announcement does not state how many warrant shares will ultimately be issued.
What changes for investors
The lower exercise price reduces the cash AEON receives for each share issued through these warrants compared with the previous price. Exercises also result in common shares or pre-funded warrants being issued, which can increase the potential share count. The stated $6.2 million is expected gross proceeds from agreed exercises; the announcement does not specify the total number of securities covered by those exercises.