GFOR Graf Acquisition Corp IV

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): February 9, 2024

 

 

NKGen Biotech, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware		001-40427		86-2191918
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

  

3001 Daimler Street

Santa Ana, CA, 92705

(Address of principal executive offices and zip code)

 

Registrant’s telephone number, including area code: (949) 396-6830

 

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

 

¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.0001 par value per share		NKGN		Nasdaq Global Market
Warrants, each whole warrant exercisable for one share of Common Stock at an exercise price of $11.50 per share		NKGNW		Nasdaq Capital Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

 

Emerging growth company x

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

 

 

 

Item 1.01. Entry into a Material Definitive Agreement.

 

On February 9, 2024, NKGen Biotech, Inc. (the “Company” and formerly known as Graf Acquisition Corp. IV (“Graf”)) entered into a binding term sheet (the “Term Sheet”) among the Company and Meteora Capital LLC and its affiliates (“Meteora”). The Term Sheet amends the terms of the previously disclosed Amended and Restated Warrant Subscription Agreement, dated September 26, 2023, between Graf and Meteora (“Amended and Restated Warrant Subscription Agreement”).

 

Pursuant to the Term Sheet, the Company and Meteora agreed among other things (i) to make all subscription warrants held by Meteora immediately eligible to accelerate the share conversion provisions of the Amended and Restated Warrant Purchase Agreement in exchange for a cash payment, (ii) to grant Meteora “Most Favored Nation” status with respect to warrant restructuring for so long as any subscription warrants remain outstanding and (iii) to grant certain registration rights to Meteora.

 

The foregoing description of the Term Sheet does not purport to be complete and is qualified in its entirety by the terms and conditions of the Term Sheet, which is filed as Exhibits 10.1 to this Current Report on Form 8-K and incorporated herein by reference.

 

Item 9.01. Financial Statements and Exhibits

 

(d) Exhibits.

 

Exhibit No.		Description
10.1		Term Sheet, entered into on February 9, 2024, between the Company and Meteora.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

SIGNATURES

 

Pursuant to the requirements of Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	NKGEN BIOTECH, INC.
Date: February 12, 2024	/s/ Paul Y. Song
	Name:	Paul Y. Song
	Title:	Chief Executive Officer
		(Principal Executive Officer)

 

 

Exhibit 10.1

 

Execution Version

 

Meteora Capital x NKGen Biotech

 

This binding term sheet (the “Term Sheet”) amends and restates the binding term sheet, dated as of January 24, 2024 (the “Original Term Sheet”) with the terms herein amending and superseding the terms set forth in the Amended and Restated Subscription Agreement (defined below), constitutes a binding commitment on the part of Meteora Capital LLC or any of its affiliates (“Meteora”, “Investor” or “Investors”) to arrange or provide financing to NKGen Biotech, Inc. (the “Company”) or any of its affiliates or any other person, which in return provides a binding commitment to, in collaboration with Meteora, mutually structure and receive such financing. This Term Sheet is binding and constitutes all material terms and is entered into in satisfaction of any definitive documentary requirements set forth on the Original Term Sheet.

 

Terms (all amounts in USD)

 

Warrant Cash	·	All 2,000,000 subscription warrants held by Meteora entities eligible for share exchange offer.
Payment and	·	Each warrant will be exchanged into a new freely tradeable registered NKGN share.
Exchange Offer	·	Fixed NKGN Share Exchange Ratio based on cash payment by Meteora:
		o	Meteora paid (i) $0.125 per warrant at the time of execution of the Original Term Sheet; and
		o	(ii) no later than ten calendar days following the effective registration of the shares, Meteora will pay up to $0.125 per warrant based on the formula below:
			§	The product of (a) the 5-day VWAP starting on the day immediately following an effective registration statement divided by $2.50 and (b) $0.125, but in no event more than $0.125 per warrant. For the avoidance of doubt, such funding shall not be made prior to the effectiveness of the registration statement registering the shares.
			§	For example, if the 5-day VWAP is $2.00, then Meteora would pay $0.10 per warrant ((($2.00/$2.50)*$0.125)=$0.10).
	·	Total number of NKGN shares to be issued to Meteora will be fixed at 1:1 shares per warrant exchanged, i.e., 2,000,000 shares:
		o	The Company shall issue all Exchange Shares to Meteora entities within two business days of signing of this Term Sheet and will inform the transfer agent accordingly. The Exchange Shares initially shall be unregistered. The Company has commenced the Form S-1 registration process but will re-file a registration statement on Form S-1 to reflect the warrant exchange within five days of the filing of the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2023, which Form 10-K will be filed with the Securities and Exchange Commission (the “Commission”) no later than March 31, 2024 (the “Filing Deadline”).
		o	The Company will use its reasonable best efforts to have the registration statement on Form S-1 declared effective as soon as reasonably practicable after the filing thereof, but in any event no later than forty-five calendar days after the Filing Deadline (the “Effectiveness Deadline”), provided that (i) if the Effectiveness Deadline falls on a Saturday, Sunday or other day that the Commission is closed for business, the Effectiveness Deadline shall be extended to the next business day on which the Commission is open for business and (ii) if the Commission is closed for operations due to a government shutdown, the Effectiveness Deadline shall be extended by the same number of business days that the Commission remains closed for.
		o	After registration of the Exchange Shares, Meteora entities, in their sole discretion, may sell up to the greater of 125,000 NKGN shares per week (the “Minimum Amount”) or 10% of the daily trading volume, on any given trading day, reporting all sales to the Company on a weekly basis.
		o	Should Meteora be unable to sell the Minimum Amount, the difference between the Minimum Amount and the actual amount of NKGN shares sold by Meteora on any given week shall be carried forward to increase the following week’s Minimum Amount on a rolling basis.
			§	As an example, should Meteora sell 75,000 NKGN shares in a trading week, the following week’s Minimum Amount shall be 175,000.
	·	Meteora shall benefit from “Most Favored Nation” status with respect to warrant restructuring for so long as any subscription warrants remain outstanding.

 

 

Meteora Capital x NKGen Biotech

	·	The Company shall have the registration statement on Form S-1 declared effective within ten business days after the date the Company is notified (orally or in writing, whichever is earlier) by the staff of the Commission that the registration statement will not be “reviewed” or will not be subject to further review. Upon the Investor’s timely request, the Company shall provide a draft of the registration statement to the Investor for review at least two business Days in advance of the date of filing the registration statement with the Commission (the “Filing Date”), and Investor shall provide any comments on the registration statement to the Company no later than the one business day immediately preceding the Filing Date. Unless otherwise agreed to in writing by the Investor prior to the filing of the registration statement, the Investor shall not be identified as a statutory underwriter in the registration statement; provided, that if the Commission requests that Investor be identified as a statutory underwriter in the registration statement, Investor will have the opportunity to withdraw from the registration statement upon its prompt written request to the Company. Notwithstanding the foregoing, if the Commission prevents the Company from including any or all of the shares proposed to be registered under the registration statement due to limitations on the use of Rule 415 of the Securities Act for the resale of the shares by the applicable stockholders or otherwise, such registration statement shall register for resale such number of shares which is equal to the maximum number of shares as is permitted by the Commission. In such event, the number of shares or other shares to be registered for each selling stockholder named in the registration statement shall be reduced pro rata among all such selling stockholders and as promptly as practicable after being permitted to register additional shares under Rule 415 under the Securities Act, the Company shall amend the registration statement or file one or more new registration statement(s) (such amendment or new registration statement shall also be deemed to be a “registration statement” hereunder) to register such additional shares that were excluded due to limitations on the use of Rule 415 of the Securities Act and cause such amendment or registration statement(s) to become effective as promptly as practicable after the filing thereof, but in any event no later than forty-five calendar days after the filing of such registration statement (the “Additional Effectiveness Deadline”); provided, that the Additional Effectiveness Deadline shall be extended to ninety calendar days after the filing of such registration statement if such registration statement is reviewed by, and comments thereto are provided from, the Commission; provided, further, that the Company shall have such registration statement declared effective within ten business days after the date the Company is notified (orally or in writing, whichever is earlier) by the staff of the Commission that such registration statement will not be “reviewed” or will not be subject to further review; provided, further, that (i) if such day falls on a Saturday, Sunday or other day that the Commission is closed for business, the Additional Effectiveness Deadline shall be extended to the next business day on which the Commission is open for business and (ii) if the Commission is closed for operations due to a government shutdown, the Effectiveness Deadline shall be extended by the same number of business days that the Commission remains closed for. Any failure by the Company to file a registration statement by the Effectiveness Deadline or Additional Effectiveness Deadline shall not otherwise relieve the Company of its obligations to file or effect a registration statement as set forth in Section 5 of the Amended and Restated Subscription Agreement dated as of September 26, 2023, between the Company and the parties thereto (the “Amended and Restated Subscription Agreement”).
	·	The provisions set forth in sections 5(b)—5(m) of the Amended and Restated Subscription Agreement are hereby incorporated by reference into this Term Sheet as if set forth fully herein.
Diligence and Legal Fees	The Investor will pay for its own due diligence and legal fees in relation to the transactions proposed in this Term Sheet. The Company shall reimburse the Investor with up to $50,000 in documented legal expenses in connection with entering into the aforementioned investments.
Governing Law	State of New York

 

Confidentiality and Exclusivity: The Company will not disclose the terms contained herein to any other person or entity unless approved by Meteora. The Company will not solicit or accept term sheets with respect to a conflicting financing transaction or enter into an agreement with respect to or close a conflicting financing without prior written confirmation to Investor following the execution of this Term Sheet (“Term Sheet Termination Event”), which shall not under any circumstances prevent the Company from soliciting, accepting term sheets, or entering into agreements with respect to or closing any Uncovered Financing. Upon execution of the Term Sheet by the Company, this Confidentiality and Exclusivity section shall be binding and the Investor shall have the right to pursue all remedies available to it at law or in equity with respect to this section including, without limitation, a decree of specific performance, injunctive relief and money damages. Any competing transaction shall not include any terms designed to circumvent the provisions of this Section or otherwise preclude Meteora’s participation including but not limited to representation/warranties or amendment rights in such competing transaction. Any unpaid amounts pursuant to this Term Sheet shall accrue interest at an annualized rate of 30% from the date such payment was due. By executing this term sheet, the Company represents and warrants that this term sheet has been duly authorized, executed and delivered.

 

[SIGNATURE PAGE BELOW]

 

 

Meteora Capital x NKGen Biotech

 

Meteora Capital LLC and its affiliates
By:	/s/ Vikas Mittal
Name:	Vikas Mittal
Title:	Managing Member
NKGen Biotech, Inc.
By:	/s/ Paul Y. Song
Name:	Paul Y. Song
Title:	CEO

 

 

v3.24.0.1

Cover	Feb. 09, 2024
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 09, 2024
Entity File Number	001-40427
Entity Registrant Name	NKGen Biotech, Inc.
Entity Central Index Key	0001845459
Entity Tax Identification Number	86-2191918
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	3001 Daimler Street
Entity Address, City or Town	Santa Ana
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92705
City Area Code	949
Local Phone Number	396-6830
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Trading Symbol	NKGN
Security Exchange Name	NASDAQ
Warrant [Member]
Document Information [Line Items]
Title of 12(b) Security	Warrants, each whole warrant exercisable for one share of Common Stock at an exercise price of $11.50 per share
Trading Symbol	NKGNW
Security Exchange Name	NASDAQ

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