Form 4: CAVU Converts Preferred Stock in Once Upon a Farm IPO

CAVU Venture Partners and TNG Investors converted their preferred stock holdings into common stock of Once Upon a Farm, PBC, coinciding with the company's initial public offering.

Summary

• CAVU Venture Partners II, III, IV, and TNG Investors LP converted various series of preferred stock into common stock of Once Upon a Farm, PBC.
• The conversions occurred automatically and for no additional consideration upon the closing of Once Upon a Farm's Initial Public Offering (IPO) on February 9, 2026.
• CAVU Venture Partners II L.P. acquired 7,411,502 shares of common stock, now holding a total of 7,411,502 shares.
• TNG Investors LP acquired 107,749 shares of common stock, increasing its total beneficial ownership to 646,478 shares.
• CAVU Venture Partners III L.P. acquired 2,274,219 shares of common stock, now holding a total of 2,274,219 shares.
• CAVU Venture Partners IV L.P. beneficially owns 731,396 shares of common stock.
• The preferred stock series converted included Series A-2, B-1, B-2, C-1, and D.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive event, reflecting the successful completion of an IPO and the expected conversion of preferred shares, which is a standard and healthy progression for a venture-backed company.

Positives

• The successful completion of Once Upon a Farm, PBC's Initial Public Offering (IPO) indicates a significant milestone for the company.
• The automatic conversion of preferred stock to common stock for no additional consideration simplifies the capital structure for the reporting entities.

Future Outlook

The filing does not provide specific forward-looking statements or guidance beyond the completion of the IPO and the resulting capital structure changes.

Management Comments

• Each of the Reporting Persons disclaims beneficial ownership of the securities reported herein for purposes of Section 16 of the Exchange Act, except to the extent of its pecuniary interest therein, if any.
• This report shall not be deemed an 'admission' that any of the Reporting Persons is a beneficial owner of such securities for the purpose of Section 16 of the Exchange Act, or for any other purpose.

Industry Context

StockSavvy.ai notes that the successful IPO of Once Upon a Farm, PBC, and the subsequent conversion of preferred stock by venture capital firms like CAVU Venture Partners, is a common and expected event in the lifecycle of a venture-backed company transitioning to public ownership. This move typically signals a maturation of the company and provides liquidity for early investors, aligning their interests with public shareholders through common stock holdings.

Comparison to Industry Standards

• The automatic conversion of preferred stock into common stock upon an IPO is a standard mechanism in venture capital financing agreements, consistent with practices seen in numerous tech and consumer goods IPOs, such as Beyond Meat (BYND) or Oatly (OTLY), where early investors' preferred shares convert to common stock at the time of public listing.
• The reporting entities, CAVU Venture Partners and TNG Investors LP, are acting as typical venture capital funds, converting their equity stakes to realize value and participate in the public market, similar to how funds like Sequoia Capital or Andreessen Horowitz manage their portfolio companies' public listings.

Stakeholder Impact

• Shareholders: Existing common shareholders will see an increase in the number of outstanding common shares due to the conversion, potentially impacting per-share metrics. New public shareholders gain access to the company's equity.
• Investors (CAVU, TNG): These venture capital investors have converted their preferred equity into publicly tradable common stock, providing them with liquidity options and aligning their interests with other common shareholders.

Next Steps

• The reporting persons will continue to hold common stock in Once Upon a Farm, PBC, subject to any lock-up agreements typically associated with an IPO.

Key Dates

Recommendation

The filing reports a standard event (preferred stock conversion upon IPO) for early investors. While the IPO itself is a positive milestone, this Form 4 primarily details a structural change in ownership rather than new operational or financial performance data. Investors should hold and await further financial disclosures from Once Upon a Farm, PBC to assess its public market performance and future prospects.

Keywords

Once Upon a Farm, OFRM, IPO, Preferred Stock Conversion, Common Stock, CAVU Venture Partners, TNG Investors, Beneficial Ownership, SEC Form 4, Venture Capital