SCHEDULE 13G: Intracoastal Capital Group Discloses Passive 4.99% Stake in Nuwellis, Inc. Following Public Offering

A group comprising Mitchell P. Kopin, Daniel B. Asher, and Intracoastal Capital LLC has disclosed a passive beneficial ownership of 4.99% of Nuwellis, Inc.'s common stock as of June 13, 2025, following an underwritten public offering.

Summary

• Mitchell P. Kopin, Daniel B. Asher, and Intracoastal Capital LLC (collectively, the "Reporting Persons") have filed a Schedule 13G, indicating passive beneficial ownership in Nuwellis, Inc.
• As of June 13, 2025, the Reporting Persons collectively beneficially own 251,087 shares of Nuwellis, Inc. common stock.
• This ownership represents approximately 4.99% of the company's common stock, calculated based on 4,780,723 shares outstanding after the public offering, plus shares from exercised warrants.
• The filing was triggered by an underwritten public offering by Nuwellis, Inc. on June 9, 2025, after which the Reporting Persons initially held approximately 7.0% (333,333 shares) of the common stock.
• The current reported ownership of 4.99% is due to 'blocker provisions' in several warrants (Intracoastal Warrants 1, 2, 3, 4, 5, and 6) that prevent exercise if it would result in beneficial ownership exceeding 4.99%.
• Some warrants (Intracoastal Warrants 1 and 2) are also not exercisable until stockholder approval for the issuance of shares.
• Without these blocker provisions and assuming all warrants were currently exercisable, the Reporting Persons could potentially hold 1,686,035 shares of common stock.
• The Reporting Persons certify that the securities were not acquired for the purpose of changing or influencing the control of Nuwellis, Inc.

Sentiment

Score: 5

Explanation: The document is a factual, compliance-driven disclosure of beneficial ownership, with no explicit positive or negative sentiment regarding the company's performance or outlook. It simply reports a change in ownership structure.

Positives

• The filing indicates a significant, albeit passive, investment by a group of investors, which could be interpreted as a vote of confidence in Nuwellis, Inc.
• The passive nature of the investment, as stated in the filing, suggests no immediate intent to challenge or influence the company's control or management.

Risks

• Potential future dilution for existing shareholders if the blocker provisions on warrants are removed or if stockholder approval is obtained, allowing for the exercise of a larger number of shares (up to 1,686,035 shares in total potential beneficial ownership without blockers and if all warrants were exercisable).

Future Outlook

The future exercisability of certain warrants (Intracoastal Warrants 1 and 2) is contingent upon the effective date of stockholder approval for the issuance of the underlying shares. Additionally, all warrants contain blocker provisions that prevent exercise if it would result in beneficial ownership exceeding 4.99%, indicating a continued passive investment strategy unless these provisions are altered.

Industry Context

This filing is a standard disclosure of beneficial ownership by a passive investor group, common in the financial industry for compliance with SEC regulations. It does not provide specific insights into Nuwellis, Inc.'s operational performance or broader industry trends, but rather details a change in its ownership structure.

Stakeholder Impact

• Shareholders: The disclosure of a significant, albeit passive, investor group holding warrants could influence investor perception. The potential for future dilution from warrant exercises, contingent on stockholder approval and blocker provisions, is a key consideration for existing shareholders.

Next Steps

• Potential future stockholder approval required for the exercise of Intracoastal Warrants 1 and 2.

Key Dates

Keywords

Nuwellis Inc, Schedule 13G, Beneficial Ownership, Mitchell P. Kopin, Daniel B. Asher, Intracoastal Capital LLC, Common Stock, Warrants, Public Offering, Passive Investment, Shareholder Disclosure