Form 4: Alzamend Neuro Director Sells Shares, Converts Preferred Stock

Alzamend Neuro's Director and 10% owner, Milton C. Ault III, reported sales of common stock and conversion of preferred stock into common shares.

Summary

• Milton C. Ault III, a Director and 10% owner of Alzamend Neuro, Inc. (ALZN), reported multiple transactions involving the company's securities.
• On July 23, 2025, 143,429 shares of common stock were acquired through the conversion of Series B convertible preferred stock at a conversion price of $2.32 per share.
• On July 23, 2025, 59,516 shares of common stock were sold at an average price of $2.9502 per share.
• On July 24, 2025, an additional 9,621 shares of common stock were sold at an average price of $2.9349 per share.
• Following these transactions, Mr. Ault beneficially owns a total of 95,524 shares of common stock directly and indirectly through Ault Lending, LLC, Ault Life Sciences, Inc., and Ault Life Sciences Fund, LLC.
• Mr. Ault also holds various common stock purchase warrants through Ault Lending, LLC and Hyperscale Data, Inc., with exercise prices ranging from $108 to $4,050 and expiration dates up to October 30, 2029.
• He also holds 1,767.2447 shares of Series B Convertible Preferred Stock through Ault Lending, LLC, which has no stated expiration date and a conversion price of $2.32, subject to adjustment.

Sentiment

Score: 3

Explanation: The significant sale of common stock by a director and 10% owner, Milton C. Ault III, generally signals a negative sentiment, even though some shares were acquired through preferred stock conversion.

Positives

• Milton C. Ault III acquired 143,429 shares of common stock through the conversion of Series B preferred stock at a conversion price of $2.32, which is lower than the subsequent sale prices, indicating a profitable conversion.

Negatives

• Milton C. Ault III, a Director and 10% owner, sold a total of 69,137 shares of common stock over two days (59,516 shares on July 23, 2025, and 9,621 shares on July 24, 2025), which can be perceived as a negative signal by the market.

Future Outlook

NA

Industry Context

NA

Related Party Transactions

• The transactions involve entities controlled by Mr. Ault, including Ault Lending, LLC, Ault Life Sciences, Inc., Ault Life Sciences Fund, LLC, and Hyperscale Data, Inc., which are considered related parties.

Stakeholder Impact

• Shareholders may interpret the insider selling as a lack of confidence by a key insider, potentially leading to negative sentiment and downward pressure on the stock price.

Key Dates

Recommendation

The filing indicates significant insider selling by a director and 10% owner, which is generally a bearish signal. However, the insider also converted preferred stock into common shares at a lower price, suggesting some confidence in the underlying asset. Given the mixed signals, a 'hold' recommendation is prudent to await further clarity on the company's performance and the insider's future actions.

Keywords

Alzamend Neuro, ALZN, Milton C. Ault III, insider trading, Form 4, beneficial ownership, stock sale, preferred stock conversion, warrants, director, 10% owner