SCHEDULE: Daewoong Boosts AEON Biopharma Stake Post-Warrant Exercise

Daewoong Co., Ltd. and Daewoong Pharmaceutical Co., Ltd. have amended their Schedule 13D filing to report a significant increase in their beneficial ownership of AEON Biopharma, Inc. following a cashless exercise of pre-funded warrants.

Summary

• Daewoong Co., Ltd. (DWC) and Daewoong Pharmaceutical Co., Ltd. (DWP) have filed an amendment to their Schedule 13D regarding their holdings in AEON Biopharma, Inc. (Issuer).
• DWP exercised its Pre-Funded Warrants on October 30, 2026, on a cashless basis, resulting in the issuance of 11,232,809 shares of Common Stock to DWP.
• Following this exercise and accounting for recent share issuances by the Issuer, DWC now beneficially owns approximately 30.6% of the outstanding Common Stock (23,242,546 shares), and DWP beneficially owns approximately 30.5% (23,184,523 shares).
• The total beneficial ownership for DWC increased from approximately 20.3% to 30.6% after the warrant exercise.
• The filing also notes that DWP holds an additional Common Stock Warrant for up to 8,000,000 shares and a Senior Secured Convertible Note, which are not currently included in the beneficial ownership calculations.
• The Pre-Funded Warrants are no longer outstanding after the exercise.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this filing as moderately positive, reflecting a significant increase in beneficial ownership percentage due to warrant exercise and share dilution, while also noting potential future dilution from other warrants and convertible notes.

Positives

• Significant increase in beneficial ownership percentage for Daewoong entities following warrant exercise.
• Cashless exercise of warrants avoided immediate cash outlay for Daewoong.
• The exercise resulted in Daewoong holding a substantial 30.6% stake in AEON Biopharma.

Negatives

• The Issuer's public offering and subsequent issuances have diluted the Reporting Persons' ownership percentage prior to the warrant exercise.
• Potential for future dilution exists due to the outstanding Common Stock Warrant and Senior Secured Convertible Note held by DWP.

Risks

• The Common Stock Warrant held by DWP has an exercise price of $1.09392 per share and cannot be exercised if it would result in beneficial ownership exceeding 49.99%.
• The Senior Secured Convertible Note held by DWP is only convertible upon the completion of a Qualified Financing by the Issuer, introducing uncertainty regarding its conversion timeline.
• Further share issuances by AEON Biopharma could continue to dilute Daewoong's ownership percentage.

Future Outlook

The filing does not provide specific forward-looking statements or guidance from management regarding future performance. However, it notes the existence of a Common Stock Warrant and a Senior Secured Convertible Note that could lead to future share issuances, impacting ownership percentages.

Industry Context

StockSavvy.ai notes that this filing reflects a common strategy where significant investors exercise warrants to increase their stake, especially in companies that have recently undergone public offerings and experienced share dilution. The presence of convertible notes and additional warrants suggests ongoing capital management and potential future financing activities by AEON Biopharma.

Stakeholder Impact

• Shareholders: The increased stake by Daewoong may signal continued investor confidence or potential for future strategic influence. However, the potential for further dilution from outstanding warrants and notes could impact existing shareholders' proportional ownership.
• Creditors: The financial health and strategic direction of AEON Biopharma, influenced by major stakeholders like Daewoong, remain critical.
• Management: The significant ownership by Daewoong could influence board composition and strategic decisions.

Next Steps

• Daewoong Co., Ltd. and Daewoong Pharmaceutical Co., Ltd. will continue to monitor their beneficial ownership percentages in AEON Biopharma, Inc.
• The potential exercise of the Common Stock Warrant and conversion of the Senior Secured Convertible Note by DWP could lead to further changes in shareholdings, subject to specific conditions.

Key Dates

Recommendation

The filing indicates a strategic increase in ownership by a significant investor through warrant exercise, which is a positive development. However, the ongoing dilution from previous offerings and the existence of further potential dilution from other instruments (warrants, convertible notes) warrant a cautious 'hold' stance until the future capital structure and strategic direction become clearer.

Keywords

Schedule 13D, Beneficial Ownership, Warrant Exercise, AEON Biopharma, Daewoong, Common Stock, Convertible Note