The extremely low reference price (~$0.17) and conversion price (~$0.19) indicate the stock has been trading at distressed levels. Existing noteholders can convert at near-market prices, while warrants at $0.34 provide a long-dated call option. Monitor whether noteholders convert; substantial conversion would add dilution. The company has a $80M market cap and no revenue visibility disclosed in this filing—watch for clinical data updates on seralutinib (PAH/PH-ILD) as the primary catalyst.
Price Chart
Executive Summary
Gossamer Bio announced the conversion rate for its 7.50% Convertible Senior Secured First Lien Notes due 2030 and the exercise price for associated warrants. The conversion price of ~$0.19 per share is only slightly above the $0.17 reference price, while the warrant exercise price is $0.34. This filing is purely mechanical—converting previously issued notes and setting warrant terms—with no new financial results, guidance, or operational catalysts. The reference price calculation period ended June 22, 2026, suggesting the company has been trading at very low levels (~$0.17), and the conversion terms imply existing noteholders can convert at a deep discount to any potential recovery above $0.19. The filing is neutral to bearish given the extremely low reference price and dilutive potential, but it does not contain any earnings data, guidance, or clinical catalysts.
Key Facts
- Initial conversion rate for 7.50% Convertible Senior Secured First Lien Notes due 2030 is 5,347.5936 shares per $1,000 principal, equating to a conversion price of approximately $0.19 per share.
- Initial exercise price for Purchase Warrants is $0.34 per whole share of common stock.
- Reference Price, calculated over a seven trading-day period beginning June 22, 2026, was determined to be $0.17 per share.
- Conversion rate calculated as the lesser of 5,347.5936 or 1,000 divided by 110% of the Reference Price; warrant exercise price is the greater of $0.34 or 125% of Reference Price.
- Company's market cap is approximately $80M with the stock trading near the reference price level.
Financial Impact
No new capital raised; filing sets conversion terms on existing convertible notes and warrants. At a $0.17 reference price, conversion price of ~$0.19 represents a ~12% premium. Full conversion of notes would result in approximately 5.35 million new shares per $1M of notes (total note principal not disclosed in filing).
Risk Factors
- Deeply distressed stock price ($0.17 reference) signals severe financial stress or market skepticism about pipeline prospects.
- Potential dilution from note conversion if stock price remains above $0.19.
- No financial results or clinical catalysts in this filing—pure technical mechanics.
- Warrant overhang at $0.34 could cap upside if pipeline catalysts materialize.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001728117-26-000057 |
| Document: goss-20260701xexx991xprcon.htm | 0001728117-26-000057 |
| Document: 0001728117-26-000057-index-headers.html | 0001728117-26-000057 |
| Document: 0001728117-26-000057-index.html | 0001728117-26-000057 |
| Document: 0001728117-26-000057.txt | 0001728117-26-000057 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 8, 2026 19d ago | SC 13D/A | $9.31 | awaiting T+20 | — | $9.77 (−4.94%) |
Sep 28, 2026 29d ago | SC 13D/A | $11.58 $9.77 | ▲ +15.63% | ▲ +16.34% | $9.77 (+15.63%) |
Sep 22, 2026 5w ago | Institutional Cluster | $11.69 $9.58 | ▼ −18.05% | ▼ −17.49% | $9.77 (−16.42%) |
Sep 16, 2026 5w ago | 8-K | $11.94 $8.89 | ▼ −25.54% | ▼ −26.75% | $9.77 (−18.17%) |
Sep 11, 2026 6w ago | 8-K | $10.73 $9.31 | ▲ +13.23% | ▲ +15.10% | $9.77 (+8.95%) |
Sep 9, 2026 6w ago | 8-K | $0.1597 $0.1273 | ▼ −20.32% | ▼ −22.26% | $9.77 (+6017.72%) |
Aug 21, 2026 9w ago | 8-K | $0.1547 $0.1410 | ▲ +8.86% | ▲ +9.87% | $9.77 (−6215.45%) |
Aug 13, 2026 10w ago | 8-K | $0.1542 $0.1337 | ▼ −13.26% | ▼ −11.27% | $9.77 (+6235.93%) |
Jul 1, 2026 16w ago | 8-K | $0.1677 $0.1783 | ▼ −6.32% | ▼ −6.87% | $9.77 (−5725.88%) |
Jun 17, 2026 18w ago | 8-K | $0.1790 $0.1701 | ▲ +4.97% | ▲ +5.29% | $9.77 (−5358.10%) |
US Market Status
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