• Confirms liability elimination of $94.9 million and discloses $11.3 million of net income
• Reports net cash used for operating activities was $2.1 million
• Reiterates commitment to both patients and shareholders

WARREN, N.J., May 29, 2024 (GLOBE NEWSWIRE) -- Tevogen Bio Holdings Inc. (“Tevogen” or “Tevogen Bio”) (Nasdaq: TVGN), a clinical-stage specialty immunotherapy biotech pioneer developing off-the-shelf, genetically unmodified T cell therapeutics in oncology, neurology, and virology, has announced financial results for the fiscal quarter ended March 31, 2024, and filed its quarterly report on Form 10-Q with the Securities and Exchange Commission.

As of March 31, 2024, Tevogen has eliminated $94.9 million in balance sheet liabilities as compared to December 31, 2023, by converting convertible promissory notes into shares of common stock. Separately, on May 10, 2024, Tevogen entered into a binding term sheet with an existing investor for a line of credit for up to $36.0 million to support the company’s baseline operating expenses for thirty-six months following the final agreement. Additionally, under this term sheet, the investor has the option to purchase common stock for an aggregate purchase price of $14.0 million, contingent upon Tevogen achieving a specified stock price threshold. This amount can be increased up to the remaining available and undrawn portion of the line of credit.

Tevogen’s reported operating expenses for the three months ending March 31, 2024, included $2.1 million in cash and $27.4 million in non-cash expenses. The key non-cash expense items included $25.2 million in non-cash stock-based compensation expenses. The stock-based compensation expense was primarily recognized when the liquidity event condition contained in certain stock-based awards was satisfied upon the closing of the business combination. Additionally, a one-time transaction cost of $7.5 million associated with Tevogen’s business combination, which was completed February 15, 2024, was reported.

“Tevogen’s first quarterly financial report since its public listing underscores the strength of our innovative business philosophy,” said Tevogen CEO Ryan Saadi. “Since our founding, we have rapidly established a research facility dedicated to new product discovery, successfully completed the proof-of-concept clinical trial for the first clinical product from our precision T cell platform, and built a robust intellectual property portfolio. I want to reaffirm my personal commitment to exploring the therapeutic potential of TVGN 489 for Long COVID patients, a priority that remains close to my heart. We are committed to transforming patient care through innovations that are not only accessible but also commercially successful.”

About Tevogen Bio

Tevogen is a clinical-stage specialty immunotherapy company harnessing one of nature’s most powerful immunological weapons, CD8+ cytotoxic T lymphocytes, to develop off-the-shelf, genetically unmodified precision T cell therapies for the treatment of infectious diseases, cancers, and neurological disorders, aiming to address the significant unmet needs of large patient populations. Tevogen Leadership believes that sustainability and commercial success in the current era of healthcare rely on ensuring patient accessibility through advanced science and innovative business models. Tevogen has reported positive safety data from its proof-of-concept clinical trial, and its key intellectual property assets are wholly owned by the company, not subject to any third-party licensing agreements. These assets include three granted patents and twelve pending patents, two of which are related to artificial intelligence.

Tevogen is driven by a team of highly experienced industry leaders and distinguished scientists with drug development and global product launch experience. Tevogen’s leadership believes that accessible personalized therapeutics are the next frontier of medicine, and that disruptive business models are required to sustain medical innovation.

Forward Looking Statements

This press release contains certain forward-looking statements, including without limitation statements relating to: expectations regarding the terms and expected use of proceeds of Tevogen’s line of credit; the healthcare and biopharmaceutical industries; Tevogen’s development of, the potential benefits of, and patient access to its product candidates for the treatment of infectious diseases, cancer and neurological disorders, including TVGN 489 for the treatment of COVID-19 and Long COVID; Tevogen’s ability to develop additional product candidates, including through use of Tevogen’s ExacTcell platform; the anticipated benefits of ExacTcell; expectations regarding Tevogen’s future clinical trials; Tevogen’s manufacturing plans; and Tevogen’s ability to generate revenue in the future. Forward-looking statements can sometimes be identified by words such as “may,” “could,” “would,” “expect,” “anticipate,” “possible,” “potential,” “goal,” “opportunity,” “project,” “believe,” “future,” and similar words and expressions or their opposites. These statements are based on management’s expectations, assumptions, estimates, projections and beliefs as of the date of this press release and are subject to a number of factors that involve known and unknown risks, delays, uncertainties and other factors not under the company’s control that may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations expressed or implied by these forward-looking statements.

Factors that could cause actual results, performance, or achievements to differ from those expressed or implied by forward-looking statements include, but are not limited to: the parties to the binding term sheet for the line of credit may not enter into definitive transaction documents on the terms described, on a timely basis, or at all; that Tevogen will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; uncertainty regarding the timing and filing of Tevogen’s Annual Report on Form 10-K and related disclosure of pro forma financial results; changes in final results arising from financial closing procedures; the effect of the recent business combination with Semper Paratus Acquisition Corporation (the “Business Combination”) on Tevogen’s business relationships, operating results, and business generally; the outcome of any legal proceedings that may be instituted against Tevogen related to the Business Combination; changes in the markets in which Tevogen competes, including with respect to its competitive landscape, technology evolution, or regulatory changes; changes in domestic and global general economic conditions; the risk that Tevogen may not be able to execute its growth strategies or may experience difficulties in managing its growth and expanding operations; the risk that Tevogen may not be able to develop and maintain effective internal controls; costs related to the Business Combination and the failure to realize anticipated benefits of the Business Combination; the failure to achieve Tevogen’s commercialization and development plans, and identify and realize additional opportunities, which may be affected by, among other things, competition, the ability of Tevogen to grow and manage growth economically and hire and retain key employees; the risk that Tevogen may fail to keep pace with rapid technological developments to provide new and innovative products and services or make substantial investments in unsuccessful new products and services; the ability to develop, license or acquire new therapeutics; that Tevogen will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the risk of regulatory lawsuits or proceedings relating to Tevogen’s business; uncertainties inherent in the execution, cost, and completion of preclinical studies and clinical trials; risks related to regulatory review, and approval and commercial development; risks associated with intellectual property protection; Tevogen’s limited operating history; and those factors discussed or incorporated by reference in Tevogen’s Annual Report on Form 10-K and filings with the SEC.

You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Tevogen undertakes no obligation to update any forward-looking statements, except as required by applicable law.

Contacts

Tevogen Bio Communications
T: 1 877 TEVOGEN, Ext 701
Communications@Tevogen.com