Item 3. Source and Amount of Funds or Other Consideration
All of the securities reported herein as beneficially owned by the Reporting Persons were acquired either (i) pursuant to the closing of the Issuer’s initial public offering (the “IPO”) which occurred on August 3, 2021 (the “IPO Closing”), where each share of the Issuer’s Series A preferred stock, Series B preferred stock and Series C preferred stock converted into approximately 0.166 shares of Common Stock (on an as-adjusted basis, after giving effect to the 1-for-6 reverse stock split of the Common Stock effected on July 23, 2021) or (ii) pursuant to the Issuer’s follow-on public offering, which closed on November 21, 2022, in which among other things, the Issuer issued and sold 22,613,307 shares of Common Stock and pre-funded warrants to purchase 6,236,693 shares of common stock at a price to the public of $2.60 per share (the “Follow-on Offering”). Unless otherwise noted herein, all shares of Common Stock and per share amounts have been adjusted to reflect the reverse stock split.
Between October 2016 and December 2018, TCG III LP purchased 3,727,742 shares of the Issuer’s Series A preferred stock for a purchase price of $6.00 per share and an aggregate purchase price of $22.4 million.
Between October 2016 and December 2018, TCG III-A LP purchased 4,209,755 shares of the Issuer’s Series A preferred stock for a purchase price of $6.00 per share and an aggregate purchase price of $25.3 million.
Between August 2019 and August 2020, TCG III LP purchased 472,659 shares of the Issuer’s Series B preferred stock for a purchase price of $9.936 per share and an aggregate purchase price of $4.7 million.
Between August 2019 and August 2020, TCG III-A LP purchased 533,781 shares of the Issuer’s Series B preferred stock for a purchase price of $9.936 per share and an aggregate purchase price of approximately $5.3 million.
In December 2020, TCG III LP purchased 188,881 shares of the Issuer’s Series C preferred stock for a purchase price of $12.432 per share and an aggregate purchase price of approximately $2.3 million.
In December 2020, TCG III-A LP purchased 213,306 shares of the Issuer’s Series C preferred stock for a purchase price of $12.432 per share and an aggregate purchase price of approximately $2.7 million.
On November 21, 2022, TCG Opportunity III LP purchased 9,615,384 shares of Common Stock in the Follow-on Offering for a purchase price of $2.60 per share and an aggregate purchase price of $24,999,998.40.
All shares of the capital stock of the Issuer purchased by TCG III LP, TCG III-A LP and TCG Opportunity III LP have been purchased using investment funds provided to TCG III LP, TCG III-A LP and TCG Opportunity III LP by their respective limited partner and general partner investors. Unless noted above, no part of the purchase price was borrowed by any Reporting Person for the purpose of acquiring any securities discussed in this Item 3.
Item 4. Purpose of Transaction.
The information set forth in Item 3 of this Statement is incorporated herein by reference. The Reporting Persons hold the securities of the Issuer for general investment purposes. The Reporting Persons may, from time to time, depending on prevailing market, economic and other conditions, acquire additional shares of Common Stock or other securities of the Issuer, dispose of any such securities, or engage in discussions with the Issuer concerning such acquisitions or dispositions or further investments in the Issuer. The Reporting Persons intend to review their investment in the Issuer on a continuing basis and, depending upon the price and availability of shares of Common Stock or other securities of the Issuer, subsequent developments affecting the Issuer, the Issuer’s business and prospects, other investment and business opportunities available to the Reporting Persons, general stock market and economic conditions, tax considerations and other factors considered relevant, may decide at any time to increase or to decrease the size of their investment in the Issuer in the open market, in privately negotiated transactions, pursuant to 10b5-1 trading plans or otherwise.
Except as set forth above, the Reporting Persons have no present plans or intentions which would result in or relate to any of the transactions described in subparagraphs (a) through (j) of Item 4 of Schedule 13D.