Form 4: ALZN Director Ault III Reports Stock Sales

Milton C. Ault III, a director at Alzamend Neuro, Inc., reported the conversion of preferred stock into common stock and subsequent sales of common stock.

Summary

• Milton C. Ault III, a Director and 10% Owner of Alzamend Neuro, Inc. (ALZN), reported several transactions involving the company's securities.
• On October 8, 2025, 61,743 shares of common stock were acquired upon the conversion of Series B convertible preferred stock at a price of $2.32 per share.
• On October 8, 2025, 101,394 shares of common stock were sold directly by the reporting person in open market transactions at a volume-weighted average sale price of $2.4376 per share, with sales prices ranging from $2.42 to $2.4634.
• On October 9, 2025, an additional 20,397 shares of common stock were sold directly by the reporting person at a price of $2.3234 per share.
• Following these transactions, Mr. Ault beneficially owns 1,843 shares directly, 28,657 shares indirectly through Ault Lending, LLC, 11,068 shares indirectly through Ault Life Sciences, Inc., and 61 shares indirectly through Ault Life Sciences Fund, LLC.
• The filing also details beneficial ownership of derivative securities, including Series B Convertible Preferred Stock with a conversion price of $2.32 and no expiration date, and Common Stock Purchase Warrants with an exercise price of $108 and various expiration dates in 2029.

Sentiment

Score: 5

Explanation: The filing reports routine insider transactions (conversion and sales) which are standard disclosures. There is no explicit positive or negative news regarding the company's operational or financial performance, leading to a neutral sentiment.

Negatives

• The sale of 121,791 shares of common stock by a director and 10% owner could be perceived negatively by some investors, potentially signaling a lack of confidence or a portfolio rebalancing.

Risks

• The conversion price of the Series B Preferred Stock is subject to adjustment as set forth in its Designation of Preferences, Rights and Limitations, introducing a variable element to its value.

Future Outlook

NA

Industry Context

NA

Related Party Transactions

• The indirect beneficial ownership and transactions involve entities such as Ault Lending, LLC, Ault Life Sciences, Inc., and Ault Life Sciences Fund, LLC, which are controlled by the reporting person, Milton C. Ault III, indicating related party dealings.

Stakeholder Impact

• Shareholders may interpret the director's sale of common stock as a signal, potentially influencing their perception of the company's near-term prospects or the director's confidence, although such sales can occur for various personal financial reasons.

Key Dates

Recommendation

This Form 4 reports routine insider transactions, specifically a conversion of preferred stock and subsequent sales of common stock by a director and 10% owner. While insider sales can sometimes be viewed negatively, these transactions do not provide sufficient information to warrant a strong buy or sell recommendation. The sales could be for various personal financial reasons and do not necessarily reflect a change in the company's fundamental outlook. Investors should consider these transactions in the broader context of the company's financial performance and strategic developments.

Keywords

Alzamend Neuro, ALZN, Milton C. Ault III, Form 4, Insider Trading, Stock Sale, Preferred Stock Conversion, Warrants, Beneficial Ownership