SCHEDULE: Creative Medical Tech Holdings: Stakeholder Shifts

Timothy Warbington and Creative Acquisition Corp. disclose beneficial ownership of 13.7% and 13.2% of Creative Medical Technology Holdings, Inc. common stock, respectively, following a significant share transaction.

Summary

• Timothy Warbington and Creative Acquisition Corp. (CAC) are filing a Schedule 13D to report their beneficial ownership of Creative Medical Technology Holdings, Inc. (the "Issuer").
• On September 24, 2026, the Issuer purchased 4,000,000 shares of BioDefense, Inc. common stock from CAC for $200,000 cash and 1,000,000 shares of the Issuer's common stock.
• Following this transaction, the Issuer owns 80% of BioDefense, and CAC owns 20%.
• Timothy Warbington directly beneficially owns 1,040,762 shares (13.7% of outstanding), and CAC beneficially owns 1,000,000 shares (13.2% of outstanding).
• The shares issued to CAC were part of a private placement and are restricted.
• The Reporting Persons acquired these securities for investment purposes and may consider various actions to maximize investment value.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a neutral to slightly negative filing, primarily due to the disclosure of a significant transaction involving restricted shares and a substantial cash outlay, without immediate clear strategic benefits presented to the public.

Positives

• Timothy Warbington, as CEO and Chairman, maintains a significant stake (13.7%) in the company, aligning his interests with shareholders.
• The transaction with CAC resulted in the Issuer acquiring a substantial stake (80%) in BioDefense, Inc., potentially creating new strategic avenues.

Negatives

• The Issuer used $200,000 in cash and issued 1,000,000 restricted shares of its own common stock to acquire BioDefense shares from an affiliated entity (CAC).
• The issuance of restricted shares to CAC could dilute existing shareholders' value if not managed effectively.
• The filing indicates an investment purpose, with potential future actions including selling shares, which could put downward pressure on the stock price.

Risks

• The Reporting Persons reserve the right to sell all or part of their investment, which could negatively impact the stock price.
• The restricted nature of the shares issued to CAC may limit their immediate marketability and could represent a future overhang.
• The strategic rationale and long-term value creation from the BioDefense acquisition are not fully detailed, introducing uncertainty.

Future Outlook

The Reporting Persons state they acquired the securities for investment purposes and may review and consider various alternative courses of action for maximizing the value of their investment, including acquiring additional shares or selling their investment. They reserve the right to change their position or formulate new plans.

Management Comments

• Mr. Warbington is the President and Chief Executive Officer of the Issuer, and also the Chairman and Chief Executive Officer of CAC.
• CAC is a holding company.

Industry Context

StockSavvy.ai notes that this filing pertains to a Schedule 13D, indicating a significant change in beneficial ownership or a new investor acquiring a substantial stake. The transaction involves the acquisition of a subsidiary (BioDefense, Inc.) using a combination of cash and restricted stock, a common strategy for growth but one that requires careful evaluation of the underlying asset's value and the impact of share dilution.

Related Party Transactions

• Creative Medical Technology Holdings, Inc. purchased 4,000,000 shares of BioDefense, Inc. common stock from Creative Acquisition Corp. (CAC) for $200,000 cash and 1,000,000 shares of the Issuer's common stock. Timothy Warbington is CEO of the Issuer and CEO/Chairman of CAC.

Stakeholder Impact

• Shareholders: The issuance of 1,000,000 restricted shares to CAC could lead to dilution. The stated intention to potentially sell shares by Reporting Persons could also impact share price.
• Creditors: No direct impact mentioned.
• Employees: No direct impact mentioned.
• Suppliers: No direct impact mentioned.
• Customers: No direct impact mentioned.

Next Steps

• The Reporting Persons may acquire additional shares of the Issuer's capital stock.
• The Reporting Persons may sell all or part of their investment.
• The Reporting Persons may formulate and implement new plans or proposals regarding their investment.

Key Dates

Recommendation

The filing indicates a significant ownership stake by management and an affiliated entity, along with a strategic acquisition of BioDefense. However, the use of restricted stock for the acquisition and the stated intention for future flexibility in selling shares introduce uncertainty. A 'hold' recommendation is appropriate pending further clarity on the strategic value of BioDefense and the long-term intentions of the Reporting Persons.

Keywords

Schedule 13D, Beneficial Ownership, Creative Medical Technology Holdings, Timothy Warbington, Creative Acquisition Corp., BioDefense Inc., Stock Purchase Agreement, Investment Purposes