Form 4: Owlet Director Converts Warrants to Common Stock

Owlet, Inc. Director Lior Susan reported the conversion of Series A and Series B warrants into 3,898,906 shares of common stock on October 10, 2025.

Summary

• Lior Susan, a Director and 10% Owner of Owlet, Inc. (OWLT), reported an indirect acquisition of 3,898,906 shares of Common Stock on October 10, 2025.
• This acquisition resulted from Eclipse Early Growth Fund I, L.P. (an entity where Lior Susan has indirect control) exchanging 5,300,291 Series A Warrants and 1,166,935 Series B Warrants for Common Stock.
• The exchange ratios were approximately 0.61 shares of Common Stock per Series A warrant and 0.56 shares of Common Stock per Series B warrant.
• Following this transaction, Lior Susan indirectly beneficially owns a total of 5,665,669 shares through Eclipse Early Growth Fund I, L.P., 968,694 shares through Eclipse Ventures Fund I, L.P., and 1,066,472 shares through Eclipse Continuity Fund I, L.P.
• The transaction was exempted from Section 16(b) of the Securities Exchange Act of 1934 pursuant to Rule 16b-3.

Sentiment

Score: 7

Explanation: The conversion of warrants into common stock by a significant insider and 10% owner, Lior Susan, indicates a solidification of their equity position in Owlet, Inc. This action, while a pre-planned event related to prior financing, generally reflects continued confidence in the company's long-term prospects.

Positives

• Increased indirect common stock ownership by a director and 10% owner, Lior Susan, through the conversion of warrants, potentially signaling continued commitment to Owlet, Inc.
• The conversion simplifies the capital structure by reducing outstanding warrants and increasing common stock holdings for a significant investor.

Negatives

• The conversion of warrants into common stock results in an increase in the number of outstanding common shares, which can lead to dilution for existing shareholders.

Future Outlook

This filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Industry Context

This filing reports an insider transaction, specifically the conversion of warrants into common stock by a director and significant shareholder. While not directly indicative of broader industry trends, it reflects a solidification of a key investor's position within Owlet, Inc., a company operating in the infant health technology sector.

Related Party Transactions

• The transaction involves Eclipse Early Growth Fund I, L.P., Eclipse Ventures Fund I, L.P., and Eclipse Continuity Fund I, L.P., where the reporting person, Lior Susan, is the sole managing member of their respective general partners, indicating a related party relationship.

Stakeholder Impact

• Shareholders: The conversion of warrants into common stock increases the total number of outstanding shares, leading to a dilutive effect on existing shareholders' percentage ownership. However, it also signifies a long-term commitment from a significant insider.
• Company: Simplifies the capital structure by reducing outstanding derivative securities (warrants) and converting them into common equity.

Key Dates

Recommendation

The filing details a pre-planned conversion of warrants into common stock by a director and 10% owner. While this increases insider ownership and can be seen as a positive sign of commitment, it's a mechanical transaction stemming from prior financing rounds rather than a new discretionary investment based on recent performance. It doesn't introduce new fundamental data to warrant a change in investment thesis, thus a 'hold' is appropriate for existing investors.

Keywords

Owlet Inc., OWLT, Lior Susan, Form 4, insider transaction, beneficial ownership, warrant conversion, common stock, equity, director, 10% owner, Eclipse funds