SCHEDULE: Parallel49 Equity Reduces Stake in CPI Card Group

Parallel49 Equity and its affiliated funds have significantly reduced their beneficial ownership in CPI Card Group Inc. to 23.6% following a sale of over 2.1 million shares.

Summary

• Parallel49 Equity, ULC and its affiliated Tricor Funds (TPCP IV and TPCP IV US) filed an Amendment No. 2 to their Schedule 13G.
• The filing reports a significant reduction in their beneficial ownership of CPI Card Group Inc. common stock.
• The Tricor Funds sold an aggregate of 2,126,056 shares of Common Stock pursuant to Share Purchase Agreements dated December 4, 2025.
• Following the sale, Parallel49 Equity and the Tricor Funds collectively beneficially own 2,687,921 shares, representing 23.6% of the outstanding common stock.
• Specifically, Tricor Pacific Capital Partners (Fund IV), Limited Partnership now beneficially owns 1,690,238 shares (14.8%), and Tricor Pacific Capital Partners (Fund IV) US, Limited Partnership owns 997,683 shares (8.8%).
• The percentage ownership is based on 11,387,538 shares of Common Stock outstanding as of October 28, 2025, as reported by CPI Card Group Inc. in its Quarterly Report on Form 10-Q.

Sentiment

Score: 3

Explanation: The sentiment is moderately negative due to a significant reduction in beneficial ownership by a major institutional investor, which can be interpreted as a loss of confidence or a strategic exit, potentially signaling future challenges or a lack of growth prospects from the investor's perspective.

Negatives

• A significant institutional investor, Parallel49 Equity, ULC, and its affiliated funds, have reduced their stake in CPI Card Group Inc. by 2,126,056 shares.
• The reduction in beneficial ownership by a major shareholder could signal a lack of confidence or a strategic exit, potentially impacting investor sentiment.

Risks

• The reduction in ownership by a significant institutional investor could be perceived negatively by the market, potentially impacting investor confidence and the company's stock price.
• A large block sale could increase selling pressure on the stock.

Future Outlook

NA

Industry Context

This filing primarily concerns a change in beneficial ownership by an institutional investor and does not provide specific details on broader industry trends or competitive landscape for CPI Card Group Inc. However, significant divestment by a major shareholder can sometimes be interpreted in the context of industry-specific challenges or opportunities, though no such context is provided here.

Stakeholder Impact

• Shareholders: May experience decreased confidence and potential downward pressure on the stock price due to a major investor reducing their stake.

Key Dates

Recommendation

While a significant institutional investor has reduced its stake, the filing itself does not provide fundamental financial or operational details to warrant a 'sell' recommendation without further analysis of CPI Card Group Inc.'s performance. The reduction in ownership by Parallel49 Equity could be due to portfolio rebalancing or other strategic reasons specific to the fund, rather than solely a negative outlook on CPI Card Group. Investors should 'hold' and monitor future company performance and other market signals before making a definitive buy or sell decision.

Keywords

CPI Card Group, Parallel49 Equity, Tricor Funds, Beneficial Ownership, Schedule 13G/A, Share Sale, Institutional Investor, Equity Stake, Common Stock