SCHEDULE 13G/A: Strome Entities Amend Passive Stake in Cue Biopharma, Disclosing 4.99% Beneficial Ownership

Mark E. Strome and affiliated entities have filed an amended Schedule 13G, revealing a collective beneficial ownership of 4.99% of Cue Biopharma, Inc.'s common stock, affirming a passive investment intent.

Summary

• Mark E. Strome and affiliated entities (Strome Mezzanine Fund, LP, Strome Mezzanine Fund II, LP, and Strome Dynasty, LLC) have filed an Amendment No. 2 to Schedule 13G regarding their beneficial ownership of Cue Biopharma, Inc. common stock.
• As of November 14, 2022, Mark E. Strome beneficially owns an aggregate of 2,166,242 shares, representing 4.99% of the class.
• This ownership includes 50,229 shares with sole voting and dispositive power (held by the Mark E. Strome Living Trust) and 2,116,013 shares with shared voting and dispositive power.
• The shared power relates to holdings by Strome Dynasty (162,629 shares), Strome Mezzanine (46,103 shares), and Strome Mezzanine II (1,531,394 shares, plus a warrant for up to 375,887 shares).
• Specifically, Strome Mezzanine Fund II, LP, holds 1,907,281 shares (4.39%), Strome Dynasty, LLC holds 162,629 shares (0.38%), and Strome Mezzanine Fund, LP holds 46,103 shares (0.11%).
• The filing explicitly states that the securities were not acquired or held for the purpose of changing or influencing the control of Cue Biopharma, Inc.

Sentiment

Score: 5

Explanation: The document is a routine amendment to a passive ownership filing, providing updated beneficial ownership percentages without indicating any change in investment intent or significant new developments. The sentiment is neutral.

Risks

• A warrant held by Strome Mezzanine Fund II, LP, is subject to a provision prohibiting its exercise beyond a number of shares that would cause the beneficial ownership of its holder (including affiliates) to exceed 4.99% of the outstanding shares following such exercise.

Future Outlook

This document does not contain any forward-looking statements or guidance regarding the issuer's future performance or operations.

Industry Context

This filing is a routine disclosure of passive beneficial ownership and does not provide information related to broader industry trends or competitive analysis.

Related Party Transactions

• Mark E. Strome has sole voting and dispositive power over 50,229 shares held by the Mark E. Strome Living Trust U/A/D January 15, 1997.
• Mark E. Strome has shared voting and dispositive power over shares held by Strome Dynasty, LLC (162,629 shares), Strome Mezzanine Fund, LP (46,103 shares), and Strome Mezzanine Fund II, LP (1,531,394 shares, plus a warrant).
• Strome Investment Management, LP is the general partner of Strome Mezzanine Fund, LP and Strome Mezzanine Fund II, LP.
• Strome Group, Inc. is the general partner of Strome Investment Management, LP.
• Mark E. Strome is the sole director, president, and chief executive officer of Strome Group, Inc., and is also the Manager of Strome Dynasty, LLC, establishing the control relationship among the reporting persons.

Stakeholder Impact

• Shareholders: Provides transparency regarding significant passive ownership stakes in Cue Biopharma, Inc.

Next Steps

• All subsequent amendments to this Schedule 13G shall be filed on behalf of each of the undersigned reporting persons without the necessity of filing additional joint filing agreements.

Key Dates

Keywords

Cue Biopharma Inc., Schedule 13G/A, beneficial ownership, common stock, Mark E. Strome, Strome Mezzanine Fund, Strome Dynasty, passive investment, SEC filing