SCHEDULE: SnowPoint Entities Disclose 9.6% Stake in Merlin, Inc.

SnowPoint Ventures, SnowPoint Growth I.II, and their principals Alexander Creasey and Douglas Philippone, have disclosed a combined 9.6% beneficial ownership stake in Merlin, Inc.

Summary

• SnowPoint Ventures, LP, SnowPoint Growth I.II, LLC, SnowPoint Ventures GP, LLC, Alexander Creasey, and Douglas Philippone collectively reported beneficial ownership of 8,252,940 shares of Merlin, Inc. common stock.
• This represents a 9.6% stake in Merlin, Inc., based on 84,262,893 shares outstanding as of March 16, 2026.
• The ownership includes common stock, Series A preferred stock immediately convertible on a one-for-one basis, and warrants immediately exercisable for common stock.
• SnowPoint Ventures, LP directly holds 1,980,701 shares (2.3%), while SnowPoint Growth I.II, LLC directly holds 6,272,239 shares (7.3%).
• SnowPoint Ventures GP, LLC, Alexander Creasey, and Douglas Philippone share voting and investment authority over the combined 8,252,940 shares.
• The reporting persons disclaim status as a "group" for Schedule 13G purposes.
• The securities were not acquired for the purpose of changing or influencing control of Merlin, Inc., other than activities solely in connection with a nomination under Rule 14a-11.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, as a substantial investment by SnowPoint signals confidence in Merlin, Inc. However, the explicit mention of potential board nominations under Rule 14a-11 introduces an element of potential shareholder activism, which can be a catalyst for change but also a source of short-term volatility.

Positives

• A significant investment group, SnowPoint, has taken a substantial 9.6% stake in Merlin, Inc., indicating confidence in the company's prospects.
• The investment includes convertible preferred stock and warrants, suggesting a long-term strategic interest.

Risks

• The filing explicitly states the securities were not acquired for the purpose of changing or influencing control, other than activities solely in connection with a nomination under Rule 14a-11. This implies a potential for future shareholder activism or board representation efforts, which could introduce governance-related risks or strategic shifts.

Future Outlook

The filing does not provide specific forward-looking statements or guidance from Merlin, Inc. or the reporting persons regarding the company's future operations or financial performance, beyond the implication of a significant investment.

Management Comments

• The Reporting Persons expressly disclaim status as a 'group' for purposes of this Schedule 13G.
• The securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under ?? 240.14a-11.

Industry Context

StockSavvy.ai notes that a significant stake acquisition by an investment firm like SnowPoint often signals a belief in the underlying value or future potential of the target company. While the filing disclaims intent to influence control, the mention of potential nominations under Rule 14a-11 suggests a readiness to engage in corporate governance, which is a common strategy for activist investors seeking to unlock shareholder value. This could put Merlin, Inc. in the spotlight for potential strategic shifts or operational improvements, aligning with broader trends of increased shareholder engagement.

Comparison to Industry Standards

• StockSavvy.ai observes that a 9.6% stake is a substantial position for an institutional investor, placing SnowPoint among the largest shareholders of Merlin, Inc.
• For comparison, similar significant stakes by activist or engaged investors in companies like Starboard Value's past investments in Darden Restaurants or Elliott Management's involvement with AT&T have often preceded calls for operational changes, board representation, or strategic reviews.
• While the filing explicitly disclaims control intent, the size of the stake and the Rule 14a-11 reference suggest a level of engagement that exceeds passive investment, potentially mirroring the early stages of activist campaigns seen across various industries.

Corporate Governance

Stakeholder Impact

• Shareholders: The significant stake by SnowPoint could be seen as a vote of confidence, potentially leading to increased share price. However, potential activism could also introduce uncertainty or pressure for strategic changes.
• Management/Board: May face increased scrutiny or pressure from SnowPoint regarding company strategy, performance, or board composition.

Next Steps

• The reporting persons may seek to nominate individuals for election to Merlin, Inc.'s board of directors under Rule 14a-11.

Key Dates

Recommendation

A significant stake by an investment firm like SnowPoint is generally a positive signal, indicating potential for value creation. However, the explicit mention of potential board nominations under Rule 14a-11 suggests a potential for shareholder activism. While activism can unlock value, it also introduces uncertainty and potential for strategic shifts. Therefore, a 'hold' recommendation is appropriate as investors await further clarity on SnowPoint's intentions and any subsequent actions, balancing the positive signal of investment with the potential for governance-related changes.

Keywords

Merlin Inc, SnowPoint Ventures, SnowPoint Growth, Alexander Creasey, Douglas Philippone, Schedule 13G, beneficial ownership, institutional investment, shareholder stake, common stock, preferred stock, warrants, corporate governance, activism