SCHEDULE 13D/A: L-5 Healthcare Partners Reduces Alphatec Warrant Exercise Price Amid Litigation Settlement, Drops Below 5% Stake

L-5 Healthcare Partners, LLC and Paul Segal have reduced the exercise price of their Alphatec Holdings, Inc. warrant to $0.01 per share as part of a litigation settlement, resulting in their beneficial ownership falling below 5%.

Summary

• L-5 Healthcare Partners, LLC and Paul Segal, as reporting persons, hold 7,201,158 shares of Alphatec Holdings, Inc. Common Stock, representing 4.96% of the class.
• This ownership includes 6,067,998 shares of Common Stock and 1,133,160 shares issuable upon the exercise of a warrant.
• On April 22, 2025, L-5 entered an agreement to reduce the exercise price of the warrant from $2.17 per share to $0.01 per share.
• This reduction is part of the settlement of L-5's pending motion for attorneys' fees and expenses related to previously disclosed litigation with Alphatec Holdings, Inc.
• As of April 23, 2025, the reporting persons ceased to be beneficial owners of more than five percent of Alphatec's Common Stock.
• The percentage of ownership is calculated based on 144,149,232 shares outstanding as of February 19, 2025, plus the 1,133,160 shares issuable from the warrant.

Sentiment

Score: 6

Explanation: The settlement of litigation is a positive development, resolving a past dispute. However, the reporting persons' stake falling below 5% could be seen as a slight negative for their influence, though it's a factual reporting of their position rather than a negative event for the company itself. The overall sentiment is neutral to slightly positive due to the resolution of legal matters.

Positives

• The exercise price of the warrant held by L-5 Healthcare Partners was significantly reduced from $2.17 per share to $0.01 per share.
• This reduction is part of a settlement resolving previously disclosed litigation, including L-5's motion for attorneys' fees and expenses, which eliminates an ongoing legal dispute.

Negatives

• L-5 Healthcare Partners, LLC and Paul Segal ceased to be beneficial owners of more than five percent of Alphatec Holdings, Inc. Common Stock, potentially reducing their influence.

Risks

• The document mentions 'previously disclosed litigation' between the Issuer and L-5, which has now been settled, mitigating a past legal risk.

Future Outlook

The document primarily reports a past event (litigation settlement and change in ownership percentage) and does not provide forward-looking statements or guidance from the company or the reporting persons regarding future operations or financial performance.

Management Comments

• "Mr. Segal, however, disclaims beneficial ownership of such shares, except to the extent of his indirect pecuniary interest therein." (Paul Segal, regarding his beneficial ownership of shares held by L-5 Healthcare Partners, LLC).

Industry Context

This filing is a specific shareholder disclosure (Schedule 13D) related to a change in beneficial ownership and the settlement of a legal dispute. It does not provide information relevant to broader industry trends or competitive dynamics within the medical device or healthcare sector.

Comparison to Industry Standards

• This document is a Schedule 13D filing detailing a change in beneficial ownership and a litigation settlement. It does not contain financial performance metrics or operational data that would allow for a comparison to global industry benchmarks or specific comparable companies/projects.

Legal Proceedings

• The document details the settlement of "previously disclosed litigation" between Alphatec Holdings, Inc. and L-5 Healthcare Partners, LLC.
• The settlement specifically involved L-5's pending motion for attorneys' fees and expenses.

Related Party Transactions

• The agreement to reduce the warrant exercise price from $2.17 to $0.01 per share is between the Issuer (Alphatec Holdings, Inc.) and L-5 Healthcare Partners, LLC, a significant shareholder, making it a related party transaction.

Stakeholder Impact

• Shareholders: The reduction in warrant exercise price and the settlement of litigation could be viewed positively as it resolves a legal overhang. The change in beneficial ownership below 5% means L-5 Healthcare Partners, LLC and Paul Segal will no longer be required to file Schedule 13D amendments unless their ownership increases above 5% again.

Key Dates

Keywords

Alphatec Holdings, ATEC, L-5 Healthcare Partners, Paul Segal, Schedule 13D, beneficial ownership, warrant, exercise price, litigation settlement, SEC filing, common stock, shareholder stake