Form 4: Doximity Director Kevin Spain Reports Share Conversion and Distribution

Kevin Spain, a director at Doximity, reported the conversion of Class B common stock to Class A common stock and subsequent distribution to partners.

Summary

• On November 12, 2024, Emergence Capital Partners II, L.P. (ECP II) converted 3,858,182 shares of Doximity's Class B Common Stock into an equal number of Class A Common Stock shares.
• Following the conversion, ECP II distributed all 3,858,182 Class A shares to its partners, including limited partners and its general partner, Emergence Equity Partners II, L.P. (EEP II).
• EEP II then distributed its pro-rata share of 620,611 Class A shares to its limited partners.
• Kevin Spain, a member of EEP II, disclaims beneficial ownership of these shares except for his pecuniary interest.
• Additionally, 193,750 shares were distributed from Emergence Capital Opportunity I, L.P. (ECO I).
• The report also includes 11,904 shares of Class A Common Stock held directly by Kevin Spain and 302,224 shares held indirectly by The Spain-Goralnik Family Trust 12/7/12.

Sentiment

Score: 6

Explanation: The document is a routine filing detailing share transactions. It is neither positive nor negative, but rather a neutral disclosure of events.

Risks

• The complex ownership structure and distribution of shares could lead to potential confusion or volatility in the stock price.
• The disclaimer of beneficial ownership by Kevin Spain, except for his pecuniary interest, could be a point of concern for some investors.

Industry Context

This filing is a routine disclosure of insider transactions and is common for publicly traded companies. The conversion and distribution of shares are part of the company's capital structure and do not indicate any significant change in the company's operations or outlook.

Comparison to Industry Standards

• Similar transactions are common among venture-backed companies where different classes of stock are used to provide different voting rights and economic interests.
• The distribution of shares to limited partners is a standard practice for venture capital funds.
• The disclaimer of beneficial ownership is a common practice to avoid reporting obligations for shares held through investment funds.

Stakeholder Impact

• The share distribution may slightly increase the number of shareholders, but the overall impact on stakeholders is expected to be minimal.

Key Dates

Keywords

Doximity, DOCS, Kevin Spain, Emergence Capital, Class A Common Stock, Class B Common Stock, Share Conversion, Distribution, Beneficial Ownership, SEC Form 4