SCHEDULE: CVI Investments and Heights Capital Management Disclose 9.9% Stake in 60 Degrees Pharmaceuticals

CVI Investments, Inc. and Heights Capital Management, Inc. have jointly disclosed a 9.9% beneficial ownership stake in 60 Degrees Pharmaceuticals, Inc., comprising 328,102 common shares.

Summary

• CVI Investments, Inc. and Heights Capital Management, Inc. (Reporting Persons) have filed a Schedule 13G disclosing beneficial ownership of 328,102 common shares of 60 Degrees Pharmaceuticals, Inc.
• This represents 9.9% of the company's common stock outstanding.
• Heights Capital Management, Inc. acts as the investment manager for CVI Investments, Inc. and holds shared voting and dispositive power over these shares.
• The beneficially owned shares include 270,000 common shares and additional shares issuable upon the exercise of pre-funded and other warrants.
• The warrants are subject to a blocker provision, preventing exercise if it would result in beneficial ownership exceeding 9.99% of the outstanding shares.
• As of July 16, 2025, 60 Degrees Pharmaceuticals, Inc. had 3,226,205 common shares outstanding, excluding shares underlying warrants, according to its Prospectus (Registration No. 333-288550).
• The Reporting Persons certify that the securities were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer.

Sentiment

Score: 7

Explanation: The disclosure of a significant 9.9% beneficial ownership by institutional investors CVI Investments, Inc. and Heights Capital Management, Inc. in 60 Degrees Pharmaceuticals, Inc. is generally positive as it indicates confidence from sophisticated investors. The structure involving warrants with a 9.99% cap is a standard investment mechanism.

Positives

• A significant 9.9% beneficial ownership stake by institutional investors CVI Investments, Inc. and Heights Capital Management, Inc. indicates confidence in 60 Degrees Pharmaceuticals, Inc.
• The investment structure includes warrants, suggesting a long-term investment horizon or a strategic entry point.

Risks

• The warrants held by the Reporting Persons are subject to a 9.99% beneficial ownership limitation, which restricts their ability to increase their stake beyond this threshold through warrant exercise.

Future Outlook

The filing is a disclosure of current beneficial ownership and does not provide any forward-looking statements or guidance from 60 Degrees Pharmaceuticals, Inc.

Management Comments

• Heights Capital Management, Inc. is the investment manager to CVI Investments, Inc. and as such may exercise voting and dispositive power over the shares reported as beneficially owned by CVI Investments, Inc. herein.
• Each of the Reporting Persons hereby disclaims any beneficial ownership of any such Shares, except for their pecuniary interest therein.
• By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11.

Industry Context

This filing represents a standard institutional investment disclosure in the pharmaceutical sector. The acquisition of a significant stake by an investment firm like Heights Capital Management, which specializes in life sciences and technology investments, suggests a strategic interest in 60 Degrees Pharmaceuticals, Inc., a company likely involved in drug development or related activities.

Comparison to Industry Standards

• A 9.9% stake is a substantial minority position for an institutional investor in a publicly traded company, often indicating a significant conviction in the company's prospects without triggering control-related reporting requirements.
• The use of warrants with a beneficial ownership cap (e.g., 9.99%) is a common mechanism employed by institutional investors to manage their ownership percentage and avoid certain regulatory thresholds or control implications, similar to strategies seen in investments by funds like Perceptive Advisors or Orbimed in biotech and pharma companies.

Corporate Governance

Related Party Transactions

• The relationship between CVI Investments, Inc. and Heights Capital Management, Inc., where Heights Capital Management acts as the investment manager and holds a limited power of attorney for CVI Investments, Inc., constitutes a related party arrangement for the purpose of their joint reporting.

Stakeholder Impact

• Shareholders of 60 Degrees Pharmaceuticals, Inc. may view the significant institutional investment as a positive signal, potentially increasing investor confidence and market interest in the company.
• Management of 60 Degrees Pharmaceuticals, Inc. receives external validation of the company's prospects, though the investors have disclaimed intent to influence control.

Next Steps

• The Reporting Persons will be required to file amendments to this Schedule 13G if there are material changes to their beneficial ownership, such as an increase or decrease of 1% or more.

Key Dates

Recommendation

The filing indicates a substantial 9.9% beneficial ownership by CVI Investments, Inc. and Heights Capital Management, Inc., which can be interpreted as a vote of confidence from institutional investors. However, as a Schedule 13G, it primarily discloses ownership and does not provide financial performance or strategic updates from 60 Degrees Pharmaceuticals, Inc. to warrant a stronger recommendation. Investors should consider this information alongside the company's financial results and strategic outlook.

Keywords

60 Degrees Pharmaceuticals, CVI Investments, Heights Capital Management, Schedule 13G, beneficial ownership, common stock, institutional investment, pharmaceuticals, warrants