SCHEDULE: Nantahala Capital Reduces Stake in Establishment Labs

Nantahala Capital Management and its principals have reduced their beneficial ownership in Establishment Labs Holdings Inc. to below 5%.

Summary

• Nantahala Capital Management, LLC, along with Wilmot B. Harkey and Daniel Mack (the "Reporting Persons"), filed an Amendment No. 7 to their Schedule 13G.
• As of December 31, 2025, Nantahala Capital Management, LLC beneficially owned 987,689 Common Shares, representing 3.40% of Establishment Labs Holdings Inc.'s class.
• Wilmot B. Harkey also beneficially owned 987,689 Common Shares, representing 3.40% of the class.
• Daniel Mack beneficially owned 987,689 Common Shares, representing 3.50% of the class, with 28,218 shares under sole voting and dispositive power.
• The Reporting Persons collectively hold shared voting and dispositive power over 987,689 shares.
• This filing indicates a reduction in their beneficial ownership to below the 5% threshold, as previous filings (Amendment No. 7 implies prior filings) would have shown ownership above 5% to necessitate a 13G filing.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a moderately negative development, as a reduction in a significant institutional stake can imply a loss of confidence or a strategic shift by the investor, potentially impacting market perception.

Negatives

• The reduction in beneficial ownership by Nantahala Capital Management and its principals to below 5% suggests a decrease in their conviction or a reallocation of capital away from Establishment Labs Holdings Inc.

Management Comments

• Nantahala Capital Management, LLC, Wilmot B. Harkey, and Daniel Mack certified that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.

Industry Context

StockSavvy.ai notes that institutional ownership changes, particularly reductions by significant holders, are closely watched by the market as they can signal shifts in investor sentiment or strategy regarding a company or sector. While this filing is specific to one company, it reflects a portfolio decision by Nantahala Capital Management.

Stakeholder Impact

• Shareholders may view the reduction in institutional ownership as a negative signal, potentially leading to decreased investor confidence or selling pressure on the stock.

Key Dates

Recommendation

The reduction in a significant institutional stake by Nantahala Capital Management suggests a diminished conviction in Establishment Labs Holdings Inc. by a sophisticated investor. This often precedes or accompanies a period of underperformance or a re-evaluation of the company's prospects, making a 'sell' recommendation prudent for investors seeking to mitigate potential downside risk or reallocate capital.

Keywords

Establishment Labs Holdings Inc., Nantahala Capital Management, Beneficial Ownership, Schedule 13G, Institutional Investor, Stake Reduction, ELAB