SCHEDULE: Solas Capital Discloses 7.7% Stake in Modular Medical

Solas Capital Management, LLC and Frederick Tucker Golden have reported a 7.7% beneficial ownership stake in Modular Medical, Inc., comprising over 4.29 million shares.

Summary

• Solas Capital Management, LLC and Frederick Tucker Golden collectively beneficially own 4,291,327 shares of Modular Medical, Inc. common stock.
• This ownership represents approximately 7.7% of the company's outstanding common stock.
• The stake includes 3,778,480 shares of common stock and 512,847 shares issuable upon the exercise of warrants.
• The percentage is calculated based on 55,274,596 shares outstanding as of August 8, 2025, plus the 512,847 warrant shares.
• The shares were acquired and are held in the ordinary course of business, not for the purpose of changing or influencing control of Modular Medical, Inc.

Sentiment

Score: 7

Explanation: The disclosure of a significant ownership stake by an investment adviser can be viewed positively, indicating investor confidence. The certification that the stake is for ordinary course investment and not for control purposes also provides clarity.

Positives

• A significant stake (7.7%) by an investment adviser like Solas Capital Management, LLC could signal confidence in Modular Medical, Inc.'s future prospects.
• The investment is stated to be in the ordinary course of business, suggesting a long-term investment strategy rather than an activist play.

Risks

• The reporting persons certify that the shares were not acquired for the purpose of changing or influencing control of the issuer, which mitigates the risk of an immediate activist challenge for Modular Medical, Inc.

Future Outlook

The filing does not provide any forward-looking statements or guidance regarding Modular Medical, Inc.'s future performance or operations.

Industry Context

This filing is a standard disclosure of a significant ownership stake by an investment firm, which is a common occurrence in the public markets. It does not provide specific industry context beyond the fact that Modular Medical, Inc. is a publicly traded company.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional investor holding a 7.7% stake may instill confidence among other shareholders, potentially signaling a positive long-term outlook for the company.
• Management: The certification that the investment is not for control purposes suggests that management can continue to execute its strategy without immediate pressure from this specific investor for board changes or strategic shifts.

Key Dates

Recommendation

This Schedule 13G filing primarily serves as a disclosure of a significant ownership stake by Solas Capital Management, LLC and Frederick Tucker Golden in Modular Medical, Inc. While the acquisition of a 7.7% stake by an investment adviser can be seen as a positive signal of confidence, the filing itself does not provide new fundamental information about the company's operations, financial performance, or strategic direction that would warrant a 'buy' or 'sell' recommendation. The certification that the shares are held in the ordinary course of business and not for control purposes suggests a passive investment. Therefore, a 'hold' recommendation is appropriate, pending further operational or financial updates from Modular Medical, Inc.

Keywords

Modular Medical, Solas Capital Management, Frederick Tucker Golden, Schedule 13G, Beneficial Ownership, Common Stock, Investment Adviser, Equity Stake, Warrants