SCHEDULE: Grove Collaborative Adds Board Member, Stakeholder Ownership Detailed

HCI Grove, LLC, along with associated entities and individuals, has updated its Schedule 13D filing to reflect the appointment of Jason H. Karp to the company's Board of Directors and detail their aggregate beneficial ownership.

Summary

• HCI Grove, LLC, HCI Grove Management, LLC, Jason H. Karp, and Ross Berman (collectively, the 'Reporting Persons') have filed Amendment No. 3 to their Schedule 13D.
• The amendment announces the appointment of Jason H. Karp to the Board of Directors of Grove Collaborative Holdings, Inc. (the 'Company') as a member of Class III, with his term expiring at the Company's 2028 annual meeting of shareholders.
• As of August 31, 2026, the Reporting Persons beneficially own an aggregate of 2,188,109 shares of Class A Common Stock, representing approximately 5.1% of the outstanding shares.
• This ownership is comprised of shares held directly by Mr. Karp and Mr. Berman, shares held by HCI Grove, LLC, and shares issuable upon exercise of a warrant held by HCI Grove Management, LLC.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive development, primarily due to the addition of a board member with significant beneficial ownership, indicating continued stakeholder alignment.

Positives

• Appointment of Jason H. Karp to the Board of Directors, aligning management with a significant beneficial owner.
• Aggregate beneficial ownership of 5.1% by the Reporting Persons indicates continued substantial interest in the Company's performance.
• Clear disclosure of ownership breakdown across different entities and individuals, enhancing transparency.

Negatives

• No specific financial performance data or strategic initiatives are detailed in this amendment, limiting insight into operational progress.

Risks

• Potential for future changes in beneficial ownership that could impact the Company's stock price or control.
• The concentration of ownership among a few reporting persons could lead to concentrated decision-making.

Future Outlook

The filing does not contain specific forward-looking statements or guidance regarding the Company's future financial performance or strategic direction. The primary forward-looking aspect relates to the term of Mr. Karp's directorship.

Management Comments

• Jason H. Karp is the sole Manager of HCI Grove, LLC and may be deemed to have voting, investment and dispositive power with respect to these securities.
• Ross Berman is the sole Manager of HCI Grove Management, LLC and may be deemed to have voting, investment and dispositive power with respect to these securities.
• As a member of the Board, Karp participates in the management and policies of the Company and, in that capacity, may take positions or actions with respect to matters presented to the Board.

Industry Context

StockSavvy.ai notes that Schedule 13D filings are common for significant investors seeking to disclose their stake and intentions. The addition of a key stakeholder to the board is a typical governance move aimed at aligning interests and providing strategic oversight.

Management Changes

Stakeholder Impact

• Shareholders: Increased transparency regarding significant beneficial ownership and board representation. Potential for improved governance with a board member aligned with substantial ownership.
• Management: Direct involvement of a significant stakeholder on the board may influence strategic decisions and operational oversight.
• Creditors: No direct impact indicated, as the filing focuses on equity ownership and board composition.

Next Steps

• Jason H. Karp will serve on the Board of Directors for a term expiring at the Company's annual meeting of shareholders in 2028.
• The Reporting Persons will continue to monitor their beneficial ownership and may adjust their holdings or strategies as deemed appropriate.

Key Dates

Keywords

Schedule 13D, Beneficial Ownership, Board Appointment, Grove Collaborative Holdings, HCI Grove, Jason H. Karp, Class A Common Stock, Warrant