SCHEDULE 13G/A: Ikarian Capital and Neil Shahrestani Disclose 9.99% Stake in Avalo Therapeutics
Beneficial Ownership Report
Investment firm Ikarian Capital, LLC and its sole manager Neil Shahrestani have disclosed a 9.99% beneficial ownership stake in Avalo Therapeutics, Inc., primarily through common stock and convertible preferred stock.
Summary
- Ikarian Capital, LLC and Neil Shahrestani (collectively, the "Reporting Persons") have filed an Amendment No. 1 to Schedule 13G, disclosing their beneficial ownership in Avalo Therapeutics, Inc.
- As of March 31, 2025, the Reporting Persons collectively beneficially own 1,191,957 shares of Avalo Therapeutics, Inc. Common Stock.
- This ownership represents 9.99% of the Issuer's outstanding Common Stock.
- The reported shares include 1,091,957 shares of Common Stock issuable upon the conversion of Series C non-voting convertible preferred stock, which are exercisable within 60 days.
- Conversion of the preferred stock is subject to restrictions, preventing the Reporting Persons from exceeding 9.99% of the outstanding Common Stock upon conversion.
- The percentage ownership is calculated based on 11,919,577 shares of Common Stock outstanding, which includes the 1,091,957 convertible shares and 10,827,620 shares outstanding as of May 7, 2025, as reported in Avalo Therapeutics' Form 10-Q.
- Ikarian Capital, LLC is an investment adviser, and Neil Shahrestani indirectly controls Ikarian Capital, LLC.
- The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of the issuer.
Sentiment
Score: 5
Explanation: The document is a factual disclosure of beneficial ownership and does not contain subjective language or performance metrics that would indicate a positive or negative sentiment. It is a standard regulatory filing.
Future Outlook
NA
Industry Context
This filing indicates a significant passive investment by an institutional investor in Avalo Therapeutics, a company operating in the biotechnology or pharmaceutical sector. Such filings are common as investment firms adjust their holdings and disclose stakes nearing or exceeding 5% of a company's outstanding shares, as required by SEC regulations.
Stakeholder Impact
- Shareholders: The disclosure of a significant stake by an investment firm like Ikarian Capital may be viewed positively by other shareholders as a sign of institutional confidence in Avalo Therapeutics. However, the passive nature of the investment (not for control) suggests no immediate strategic changes are anticipated from this stake.
Key Dates
| Date | Description |
|---|---|
| 03/31/2025 | Date of event which requires filing of this statement (beneficial ownership calculation date). |
| 05/07/2025 | Date as of which 10,827,620 shares of Common Stock were outstanding, as disclosed in the Issuer's Form 10-Q. |
| 05/12/2025 | Date Avalo Therapeutics, Inc. filed its quarterly report on Form 10-Q for the period ended March 31, 2025. |
| 05/15/2025 | Date of signing for the Schedule 13G Amendment No. 1 filing. |
| 10/07/2024 | Date of the initial Schedule 13G filing by the Reporting Persons, which includes the Joint Filing Agreement incorporated by reference. |
Keywords
Avalo Therapeutics, Ikarian Capital, Neil Shahrestani, Schedule 13G, Beneficial Ownership, Common Stock, Preferred Stock, Investment Adviser, SEC Filing, Biotechnology, Pharmaceuticals
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