UPDATE: Turn Therapeutics (TTRX) - GEM Cashed In Its Chips

The Exercise. GEM Yield Bahamas exercised the October 8, 2025 warrant in full, on a cashless basis. The warrant covered 1,192,207 shares at a $5.03 strike — 4% of fully diluted shares as of issuance. Under the cashless provision, GEM surrendered the intrinsic value instead of writing a check, and the company issued 579,664 shares. Do the math backwards: the implied per-share market value used was roughly $9.79, consistent with where the tape has been sitting this week.

The implication: Share count moves from 29,788,040 to approximately 30,367,704 — about 1.9% dilution. That is real, but it is the small version of this event. A cash exercise would have added ~1.19M shares and put ~$6.0M in the treasury; the cashless route halves the dilution and sends the company zero dollars.

What it removes. The $5.03 warrant has been a named line item in every update since May — “deep in the money,” sitting on the balance sheet as part of the $6.1M derivative liability that was up from $3.0M at year-end purely because the stock went up. That liability’s warrant component is now settled in equity. Expect the Q3 10-Q to show the derivative-liability line shrink and a corresponding non-cash swing through the P&L. As I said in August: that line is mark-to-market noise, not a financing. Now a chunk of the noise gets retired.

What it does not touch. The ~$81M of remaining GEM purchase capacity at 90% of market is unchanged. The put option liability is unchanged. Avenue’s Tranche 2 gate — $10.0M in aggregate equity proceeds — is unchanged, and a cashless warrant exercise does not count toward it because no proceeds arrive. The $60–65M Phase 3 funding requirement and the going-concern language are unchanged. The canyon is still a canyon.