SCHEDULE: Stonepine Capital Discloses 9.9% Stake in IN8BIO

Stonepine Capital Management and its affiliates have reported a 9.9% beneficial ownership stake in IN8BIO, Inc., comprising common stock and prefunded warrants.

Summary

• Stonepine Capital Management, LLC, Stonepine Capital, L.P., Stonepine GP, LLC, and Jon M. Plexico collectively beneficially own 1,007,990 shares of IN8BIO, Inc. Common Stock.
• This represents 9.9% of the company's outstanding Common Stock.
• The ownership consists of 679,421 shares of Common Stock and Prefunded Warrants to acquire 929,275 shares of Common Stock, subject to a 9.99% beneficial ownership limitation.
• The percentage is calculated based on 4,634,396 shares outstanding on November 3, 2025, and an additional 5,127,029 shares issued in a private placement on December 19, 2025.
• The reporting persons have shared voting and dispositive power over all 1,007,990 shares.
• The acquisition was not for the purpose of changing or influencing control of IN8BIO, Inc.

Sentiment

Score: 7

Explanation: The disclosure of a substantial 9.9% beneficial ownership by Stonepine Capital, an institutional investor, suggests a positive outlook on IN8BIO, Inc. from a sophisticated market participant. This can be interpreted as a vote of confidence in the company's prospects.

Positives

• A significant institutional investor, Stonepine Capital, has taken a substantial 9.9% stake in IN8BIO, Inc., indicating confidence in the company's future prospects.
• The investment includes prefunded warrants, suggesting a long-term strategic interest while managing immediate dilution impact.

Risks

• The beneficial ownership is subject to a 9.99% limitation, which could restrict Stonepine Capital's ability to increase its stake beyond this threshold without further disclosures or potential regulatory implications.
• The value of the prefunded warrants is dependent on the future stock price of IN8BIO, Inc., introducing market risk.

Future Outlook

The filing does not contain specific forward-looking statements or guidance from IN8BIO, Inc. or the reporting persons regarding the company's future performance or strategic direction, beyond the nature of the investment.

Industry Context

A significant stake by an institutional investor like Stonepine Capital in a biotechnology company such as IN8BIO, Inc. can signal market confidence in the company's research, development pipeline, or strategic direction. Such investments are common in the biotech sector, where capital-intensive R&D often requires substantial institutional backing. The inclusion of prefunded warrants is a common mechanism for institutional investors to gain exposure while managing immediate capital outlay and potential dilution.

Stakeholder Impact

• Shareholders: The entry of a significant institutional investor could be viewed positively, potentially stabilizing the stock or signaling future growth.
• Company Management: The investment provides capital and potentially validates the company's strategy.

Key Dates

Recommendation

The disclosure of a significant 9.9% stake by an institutional investor like Stonepine Capital is generally a positive signal, indicating confidence in IN8BIO, Inc. However, this filing is purely a disclosure of ownership and does not provide new operational or financial performance data. While the institutional backing is a good sign, without further information on the company's fundamentals, pipeline progress, or market conditions, a 'hold' recommendation is prudent. Investors should monitor future company announcements and Stonepine Capital's actions for further insights.

Keywords

IN8BIO, Stonepine Capital, beneficial ownership, Schedule 13G, common stock, prefunded warrants, institutional investment, biotech, private placement