Fractyl Health, Inc. (NASDAQ: GUTS) has called all outstanding Tranche A Common Stock Purchase Warrants, giving holders the option to buy shares at $1.05 each or receive a nominal cash payment of $0.00001 per share. The call will close on December 30, 2025, giving investors a 15‑day window to exercise or cash out.
The company could receive roughly $17.9 million in gross proceeds if every warrant is exercised. With the stock trading at $2.24 on the day of the call, the exercise price represents a $1.19 premium, making exercise highly attractive for warrant holders and ensuring the company can capture the full upside of the warrant exercise.
The call was triggered by two milestones: a positive three‑month randomized midpoint analysis from the REMAIN‑1 study, which evaluates Fractyl’s Revita procedure for weight maintenance after GLP‑1 discontinuation, and a sustained share price above $1.37 for 15 consecutive trading days. The REMAIN‑1 data showed that Revita‑treated patients maintained or continued to lose weight, while sham‑treated patients regained weight, providing a strong de‑risking signal for the program’s potential market impact.
Fractyl’s balance sheet has been under pressure, with a net loss of $45.6 million in the third quarter of 2025 versus $23.2 million a year earlier and negative free cash flow of $86.8 million over the past 12 months. The warrant proceeds will extend the company’s runway into 2026, allowing continued investment in the Revita and Rejuva pipelines and supporting the upcoming 2026 data readouts.
CEO Harith Rajagopalan said the warrant call “demonstrates our confidence in the clinical momentum of Revita and the strength of our financial position.” He added that the company is “doubling down on weight‑maintenance solutions that address the unmet need of keeping weight off after GLP‑1 therapy.”
The warrant exercise strengthens Fractyl’s balance sheet, positions the company for the 2026 data readouts, and signals to investors that management believes the company’s pipeline and financial strategy are on track to deliver value in the coming years.
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