Form 4: CapsoVision Director and 10% Owner Reports Significant Share Conversion Post-IPO

Eliyahou Harari, a Director and 10% owner of CapsoVision, Inc., reported the conversion of millions of preferred shares into common stock following the company's initial public offering and a reverse stock split.

Summary

• Eliyahou Harari, a Director and 10% Owner of CapsoVision, Inc. (CV), reported changes in his beneficial ownership of the company's securities.
• On July 3, 2025, various series of preferred stock (Series D-1, D-2, E, F-1, F-2, G, G-1, and H) automatically converted into common stock upon the closing of CapsoVision's initial public offering (IPO).
• Each preferred share converted into approximately 0.3003 shares of common stock.
• A 1-for-3.33 reverse stock split of the common stock was effected by CapsoVision on July 2, 2025, in connection with its IPO.
• Following these transactions, Eliyahou Harari beneficially owns a total of 4,222,422 shares of common stock indirectly through various trusts.
• Specifically, 3,186,904 common shares are held by the Harari Family Trust, 517,759 common shares by Harari 2010 Children Remainder Trust MHG, and 517,759 common shares by Harari 2010 Children Remainder Trust DAH.

Sentiment

Score: 7

Explanation: The filing indicates a successful IPO and a standard conversion process, which is a positive milestone for the company. The insider's continued substantial ownership is also a positive signal.

Positives

• The automatic conversion of preferred stock to common stock is a standard and expected event associated with a company's initial public offering, signifying a major milestone for CapsoVision, Inc.
• The reporting person, a Director and 10% owner, maintains a substantial beneficial ownership stake of over 4.2 million common shares in the company post-IPO, indicating continued alignment with shareholder interests and confidence in the company's future.

Industry Context

This filing reflects a standard procedural step for a company transitioning from private to public ownership via an IPO, where pre-IPO preferred shares held by insiders convert into common stock. Such conversions are common across industries when companies go public, allowing for a simplified capital structure for public trading.

Related Party Transactions

• The reported securities are held indirectly by the Harari Family Trust, Harari 2010 Children Remainder Trust MHG, and Harari 2010 Children Remainder Trust DAH. Eliyahou Harari, the reporting person, along with his wife, serve as trustees for these entities, establishing a related party relationship for the beneficial ownership.

Stakeholder Impact

• Shareholders: The reverse stock split impacts the number of shares held by existing common shareholders, while the conversion of preferred shares into common stock increases the total outstanding common shares. The IPO itself provides liquidity for early investors and new investment opportunities for public shareholders.

Key Dates

Keywords

CapsoVision, SEC Form 4, Insider Ownership, Beneficial Ownership, IPO, Initial Public Offering, Common Stock, Preferred Stock Conversion, Reverse Stock Split, Corporate Governance