SCHEDULE: Paramora Holding Discloses 7.5% Stake in Galecto

Paramora Holding LLC has reported a 7.5% beneficial ownership stake in Galecto, Inc.'s common stock, excluding convertible preferred shares.

Summary

• Paramora Holding LLC beneficially owns 120,473 shares of Galecto, Inc. common stock.
• This ownership represents 7.5% of Galecto, Inc.'s outstanding common stock.
• The percentage is calculated based on 1,597,321 shares of common stock outstanding as of December 29, 2025.
• The reported beneficial ownership excludes shares of common stock issuable upon conversion of Series C Non-Voting Convertible Preferred Stock directly held by Paramora Holding LLC.
• Conversion of Series C Preferred Stock into common stock is contingent upon Galecto's stockholder approval in accordance with Nasdaq rules.
• Each share of Series C Preferred Stock is convertible into 1,000 shares of common stock.
• A beneficial ownership limitation of 4.99% applies to shares issuable from the conversion of Series C Preferred Stock.
• The securities were acquired without the purpose or effect of changing or influencing the control of Galecto, Inc., other than activities solely related to a nomination under Rule 14a-11.

Sentiment

Score: 6

Explanation: The filing is a factual disclosure of a significant beneficial ownership stake by Paramora Holding LLC in Galecto, Inc. While the disclosure of a 7.5% stake by an institutional investor can be viewed as a positive signal of confidence, the filing itself does not contain operational or financial performance updates. The limitations on preferred stock conversion introduce a minor element of complexity.

Positives

• A significant institutional investor, Paramora Holding LLC, has disclosed a 7.5% stake in Galecto, Inc., which can be interpreted as a signal of confidence in the company's prospects.

Negatives

• The 4.99% beneficial ownership limitation on the conversion of Series C Preferred Stock restricts Paramora Holding LLC's immediate ability to convert all its preferred shares into common stock if it would exceed this threshold, potentially limiting its flexibility.

Risks

• The conversion of Series C Non-Voting Convertible Preferred Stock into common stock is subject to receiving approval by Galecto, Inc.'s stockholders, introducing uncertainty regarding the timing and full realization of Paramora Holding LLC's potential common stock ownership.
• The 4.99% beneficial ownership limitation on Series C Preferred Stock conversion could restrict Paramora Holding LLC's ability to fully convert its preferred shares into common stock, potentially impacting its voting power and market influence.

Future Outlook

The conversion of Series C Preferred Stock into common stock is a future event contingent on stockholder approval and adherence to Nasdaq rules and a 4.99% beneficial ownership limitation.

Industry Context

NA

Corporate Governance

Stakeholder Impact

• Shareholders: The disclosure of a new significant beneficial owner (Paramora Holding LLC) provides transparency regarding the company's ownership structure. The potential future conversion of Series C Preferred Stock, subject to stockholder approval, could dilute existing common stock holders if not properly managed.

Next Steps

• Galecto, Inc. stockholders need to approve the issuance of common stock upon conversion of Series C Preferred Stock in accordance with Nasdaq rules.

Key Dates

Keywords

Galecto Inc, Paramora Holding LLC, Schedule 13G, beneficial ownership, common stock, Series C Preferred Stock, convertible securities, institutional investor, equity stake, Nasdaq rules