SCHEDULE: Nantahala Capital Discloses 9.99% Stake in InspireMD

Nantahala Capital Management, LLC and its managing members have disclosed a 9.99% beneficial ownership stake in InspireMD, Inc., including shares acquirable via warrants.

Summary

• Nantahala Capital Management, LLC, along with Wilmot B. Harkey and Daniel Mack, collectively reported beneficial ownership of 4,255,729 shares of InspireMD, Inc. common stock.
• This represents 9.99% of the total class of securities outstanding as of September 30, 2025.
• The reported shares include 879,245 shares that can be acquired within sixty days through the exercise of warrants.
• Nantahala Capital Partners Limited Partnership, a fund advised by Nantahala, holds the right to receive dividends or proceeds from more than 5% of these beneficially owned shares.
• The reporting persons certify 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 InspireMD, Inc.

Sentiment

Score: 7

Explanation: The disclosure of a significant 9.99% stake by an institutional investor like Nantahala Capital Management is generally viewed positively by the market, suggesting confidence in InspireMD, Inc.'s prospects. The inclusion of warrants further indicates a potential long-term interest.

Positives

• A significant institutional investor, Nantahala Capital Management, LLC, has taken a substantial 9.99% stake in InspireMD, Inc., signaling confidence in the company.
• The stake includes a notable portion (879,245 shares) from exercisable warrants, indicating a potential long-term commitment or strategic investment.

Management Comments

• The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11.

Industry Context

This filing indicates that a notable investment firm, Nantahala Capital Management, has established or maintained a significant position in InspireMD, Inc. Such disclosures are common for institutional investors crossing the 5% ownership threshold, providing transparency to the market about large shareholder positions. For companies in the medical device or biotechnology sector, like InspireMD, a substantial institutional stake can be viewed as a vote of confidence in their technology, market potential, or strategic direction.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake may instill confidence among existing shareholders and attract new investors, potentially influencing stock valuation.
• Management: The presence of a large institutional investor could lead to increased scrutiny or engagement regarding corporate strategy and performance, even if the filing states no intent to influence control.

Key Dates

Recommendation

While a significant institutional stake is generally a positive signal, this filing is purely a disclosure of ownership and does not provide new operational or financial performance data. It suggests a vote of confidence from a sophisticated investor, which might warrant holding the stock, but it doesn't inherently provide a strong 'buy' signal without further fundamental analysis of InspireMD's business. The 'no intent to influence control' statement also limits the immediate activist potential.

Keywords

InspireMD Inc., Nantahala Capital Management, Beneficial Ownership, Schedule 13G, Common Stock, Institutional Investor, Warrants, Equity Stake, Investment Adviser