Form 4: Femasys Director Acquires Warrants in Private Placement

Femasys Director Kenneth D. Eichenbaum acquired 102,366 Series D-1 Warrants at an exercise price of $0.58 per share through a private placement.

Summary

• Kenneth D. Eichenbaum, a Director of Femasys Inc. (FEMY), acquired 102,366 Series D-1 Warrants.
• The warrants have an initial exercise price of $0.58 per share of Common Stock.
• The transaction date for the acquisition was March 19, 2026.
• The warrants become exercisable on March 19, 2026, and expire on March 19, 2036.
• These securities were issued to the reporting person in a private placement as consideration for an Omnibus Amendment and Consent Agreement dated March 19, 2026.
• The holder's ability to exercise the warrants is subject to certain limitations in accordance with Nasdaq Capital Market rules.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive signal, as a director's acquisition of warrants suggests a belief in the company's long-term potential, despite the potential for future dilution.

Positives

• A Director, Kenneth D. Eichenbaum, is increasing his potential stake in the company through the acquisition of warrants, which can signal confidence in future performance.

Negatives

• The issuance of warrants, if exercised, could lead to dilution for existing shareholders.
• Specific terms of the Omnibus Amendment and Consent Agreement, which led to the warrant issuance, are not fully detailed in this filing.

Risks

• The value of the Series D-1 Warrants is subject to the future market price of Femasys Inc. common stock.
• Exercise of the warrants is subject to certain limitations imposed by Nasdaq Capital Market rules, which could affect the holder's ability to convert them into common stock.
• Future adjustments to the exercise price may occur due to stock splits, stock dividends, stock combinations, recapitalizations, or similar transactions.

Future Outlook

The acquisition of these warrants provides the reporting person with the potential to increase their equity stake in Femasys Inc. in the future, subject to the exercise price and market conditions. The warrants have a long expiration date of March 19, 2036, allowing for a long-term view on the company's performance.

Industry Context

StockSavvy.ai notes that insider transactions, such as a director acquiring warrants, are often closely watched by investors as they can provide insights into management's confidence in the company's future prospects. While not a direct purchase of common stock, warrants offer a leveraged way for insiders to increase their potential ownership.

Comparison to Industry Standards

• Insider warrant grants are a common mechanism for compensating directors or settling agreements, particularly in smaller or growth-stage companies where cash compensation might be limited.
• The exercise price of $0.58 per share will be compared by investors to the current market price of Femasys Inc. common stock to assess the immediate 'in-the-money' or 'out-of-the-money' status of the warrants.
• The 10-year expiration period (until March 19, 2036) is a relatively long duration for warrants, providing significant time for the underlying stock to appreciate, which is typical for long-term incentive or consideration instruments.

Related Party Transactions

• The issuance of Series D-1 Warrants to Kenneth D. Eichenbaum, a Director of Femasys Inc., constitutes a related party transaction.

Stakeholder Impact

• Shareholders: Potential for future dilution if the warrants are exercised, increasing the number of outstanding shares.
• Director (Kenneth D. Eichenbaum): Gains a leveraged opportunity to increase his ownership stake in the company if the stock price appreciates above the exercise price.

Next Steps

• The reporting person may choose to exercise the Series D-1 Warrants at any time between March 19, 2026, and March 19, 2036, subject to the exercise price and Nasdaq Capital Market limitations.

Key Dates

Keywords

Femasys, FEMY, Warrants, Private Placement, Insider Transaction, Director, SEC Form 4, Beneficial Ownership