SCHEDULE: Francisco Trust Boosts Dyadic Stake to 10.32%

Francisco Trust reports a 10.32% ownership in Dyadic International Inc., including shares convertible from a promissory note.

Summary

• Francisco Trust, under an agreement dated February 28, 1996, has filed an amendment to its Schedule 13G, reporting beneficial ownership of Dyadic International Inc. common stock.
• The trust now holds 4,232,653 shares, representing 10.32% of the class of securities.
• This ownership includes 3,280,272 directly held shares and 952,381 shares convertible from a promissory note issued on March 8, 2024, and subsequently amended.
• The convertible promissory note has a conversion price of $1.05 per share.
• The percentage of class ownership is based on 40,063,703 shares outstanding as of August 14, 2026, as per the issuer's prospectus supplement filed on August 13, 2026.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive filing, indicating a significant but not overwhelming ownership stake by a trust, with potential for future conversion of debt into equity.

Positives

• Francisco Trust has increased its stake in Dyadic International Inc. to a significant 10.32%.
• The trust holds the right to acquire additional shares through the conversion of a promissory note, indicating potential for further equity increase.
• The conversion price of $1.05 per share on the promissory note suggests a favorable entry point for the trust if conversion occurs.

Negatives

• The filing does not detail the specific reasons for the increased stake or the conversion of the note.
• The reliance on a convertible note introduces a layer of financial instrument complexity rather than direct equity ownership for a portion of the stake.

Risks

• The value of the 952,381 shares convertible from the promissory note is subject to market fluctuations and the company's performance.
• The conversion price of $1.05 per share implies that the trust anticipates the stock price to remain above this level for conversion to be economically beneficial.

Future Outlook

The filing does not contain explicit forward-looking statements or guidance from the company. However, the trust's acquisition of shares and convertible notes suggests an expectation of future value appreciation for Dyadic International Inc.

Management Comments

• Thomas Emalfarb, Trustee, certified that the securities were not acquired or held for the purpose of or with the effect of changing or influencing control of the issuer, nor in connection with any transaction having that purpose or effect, other than in connection with a nomination under Rule 240.14a-11.

Industry Context

StockSavvy.ai notes that significant stake increases by investment entities, especially those involving convertible instruments, can signal confidence in a company's future prospects within the biotechnology or specialized technology sectors where Dyadic International operates.

Stakeholder Impact

• Shareholders: The increased stake by Francisco Trust could be perceived positively, indicating confidence, but also raises questions about potential future influence or dilution if the note is converted.
• Creditors: The conversion of the note into equity would reduce the company's debt obligations, potentially improving its balance sheet from a creditor's perspective.

Next Steps

• Francisco Trust may convert its promissory note into additional shares of common stock, subject to the terms of the note and market conditions.
• Further amendments to Schedule 13G may be filed if the trust's beneficial ownership changes significantly.

Key Dates

Recommendation

The filing indicates a significant ownership stake and potential for further equity acquisition via a convertible note. While this suggests some level of investor confidence, it is a disclosure of ownership rather than a fundamental business update. Therefore, a 'hold' recommendation is appropriate pending further information on the company's operational performance and strategic direction.

Keywords

Dyadic International, Francisco Trust, Schedule 13G, Beneficial Ownership, Convertible Promissory Note, Equity Stake, Shareholder