SCHEDULE 13G: Investment Funds Disclose Significant Stake in Aadi Bioscience, Inc.

Suvretta Capital Management, LLC, Averill Master Fund, Ltd., and Aaron Cowen have jointly disclosed beneficial ownership of up to 9.99% of Aadi Bioscience, Inc.'s common stock.

Summary

• Suvretta Capital Management, LLC, Averill Master Fund, Ltd., and Aaron Cowen have filed a Schedule 13G, reporting their beneficial ownership in Aadi Bioscience, Inc.
• As of March 4, 2025, Suvretta Capital Management, LLC and Aaron Cowen each beneficially own 4,727,510 shares of Aadi Bioscience, Inc. common stock, representing 9.99% of the class.
• Averill Master Fund, Ltd. beneficially owns 4,189,490 shares, which constitutes 8.9% of the common stock.
• The reported ownership includes shares that may be acquired upon the exercise of pre-funded warrants with an exercise price of $0.0001 per share and no expiration date.
• Exercise of these pre-funded warrants is subject to a limitation, ensuring that the holders, their affiliates, and any Section 13(d) group members do not beneficially own more than 9.99% of the outstanding common stock, though this maximum percentage can be increased to 19.99% with 61 days' prior written notice to the Issuer.
• The filing certifies that the securities were not acquired and are not held for the purpose of changing or influencing the control of the issuer, nor in connection with any transaction having that purpose or effect, other than activities solely in connection with a nomination under Rule 14a-11.

Sentiment

Score: 7

Explanation: The filing indicates significant institutional investment in Aadi Bioscience, which is generally a positive signal of investor confidence. The passive nature of the investment (13G filing) suggests a long-term, non-activist stance.

Positives

• The disclosure of a significant stake by institutional investors like Suvretta Capital Management and Averill Master Fund can signal confidence in Aadi Bioscience, Inc.'s future prospects.
• The investment is passive, indicating a long-term investment interest rather than an immediate intent to influence control, which can be viewed positively by existing management and shareholders.

Risks

• The beneficial ownership includes pre-funded warrants, the exercise of which is capped at 9.99% of outstanding common stock, potentially limiting the immediate full conversion of the investment into common shares.
• The ability to increase the maximum percentage of warrant exercise to 19.99% requires a 61-day notice period, which could introduce a delay in increasing their stake beyond the initial cap.

Future Outlook

The document indicates that Averill Master Fund, Ltd. may, by written notice to the Issuer, increase or decrease its 'Maximum Percentage' of beneficial ownership from 9.99% to any other percentage not exceeding 19.99%, with any such increase becoming effective 61 days after notice delivery. This suggests a potential for future adjustments in their stake.

Management Comments

• Aaron Cowen, as Authorized Signatory for Suvretta Capital Management, LLC and Director for Averill Master Fund, Ltd., certified that the information set forth in the statement is true, complete, and correct to the best of his knowledge and belief.
• The reporting persons disclaim beneficial ownership of the reported securities except to the extent of their pecuniary interest therein.

Industry Context

Aadi Bioscience, Inc. operates in the biotechnology sector. The filing of a Schedule 13G by significant investment funds like Suvretta Capital Management and Averill Master Fund indicates continued institutional interest and investment activity within the biotech industry, particularly in companies that may be perceived as having growth potential.

Stakeholder Impact

• Shareholders: The disclosure of significant institutional ownership may be viewed positively, potentially increasing investor confidence and attracting further investment.
• Company Management: The passive nature of the investment (13G filing) suggests that the investors do not intend to seek control or influence management, which could provide stability.

Next Steps

• Averill Master Fund, Ltd. may provide written notice to Aadi Bioscience, Inc. to increase its maximum beneficial ownership percentage from 9.99% up to 19.99%, with such an increase becoming effective 61 days after the notice.

Key Dates

Keywords

Aadi Bioscience, Suvretta Capital Management, Averill Master Fund, Aaron Cowen, Schedule 13G, beneficial ownership, common stock, institutional investment, pre-funded warrants, biotechnology, pharmaceuticals