SCHEDULE 13D/A: Anson Funds Discloses 6.0% Stake in Lovesac Co, Amends Schedule 13D Filing

Anson Funds Management LP and its affiliates have filed an Amendment No. 1 to their Schedule 13D, disclosing a 6.0% beneficial ownership stake in Lovesac Co, alongside significant economic exposure through derivative agreements.

Summary

• Anson Funds Management LP, Anson Management GP LLC, Tony Moore, Anson Advisors Inc., Amin Nathoo, and Moez Kassam (collectively, the "Reporting Persons") have filed an Amendment No. 1 to their Schedule 13D regarding Lovesac Co.
• The Reporting Persons beneficially own an aggregate of 932,261 shares of Lovesac Co Common Stock, representing 6.0% of the outstanding shares.
• This percentage is calculated based on 15,432,856 shares of Common Stock outstanding as of December 6, 2024, as reported in Lovesac Co's Form 10-Q.
• The Common Stock was purchased using working capital of the Funds, with an aggregate cost of approximately $22,004,565, excluding brokerage commissions.
• The Reporting Persons also hold long cash settled swap agreements referencing 514,160 shares of Common Stock, which provide economic exposure comparable to 3.3% of the outstanding shares, but do not confer voting or dispositive power.
• Transactions in the past sixty days include purchases of 10,000 shares on January 15, 2025, at a weighted average price of $26.4565 per share, and 3,032 shares on February 5, 2025, at a weighted average price of $23.2434 per share.

Sentiment

Score: 6

Explanation: The filing indicates a significant and active investment by an institutional fund, which is generally viewed as a positive signal of confidence in the company's value or future prospects. The disclosure of derivative positions further highlights a sophisticated investment strategy.

Positives

• The disclosure of a significant 6.0% beneficial ownership stake by Anson Funds, a notable investment firm, indicates a strong vote of confidence in Lovesac Co's future prospects.
• The substantial investment of approximately $22 million (excluding commissions) demonstrates a material commitment to the company.
• The additional economic exposure through derivative agreements, representing 3.3% of outstanding shares, further underscores Anson Funds' positive outlook on Lovesac Co's performance.

Future Outlook

The document does not provide any forward-looking statements or guidance from Lovesac Co or the Reporting Persons regarding the company's future performance or strategic direction.

Industry Context

Lovesac Co operates in the consumer discretionary sector, specifically within the home furnishings and furniture industry. Anson Funds' significant stake suggests a belief in the company's position or potential within this market, which has seen fluctuating consumer demand and supply chain dynamics in recent years. This investment could signal an expectation of growth or value realization in the sector.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake by Anson Funds may be viewed positively, potentially signaling increased investor confidence and attracting further institutional interest in Lovesac Co's stock.

Key Dates

Keywords

Lovesac Co, Anson Funds Management LP, Schedule 13D, Beneficial Ownership, Common Stock, Investment, Furniture, Home Goods, Derivative Agreements, Institutional Investor