SCHEDULE 13G/A: Investment Funds Disclose Passive Stake in Phio Pharmaceuticals Corp. Below 5% Threshold

CVI Investments, Inc. and Heights Capital Management, Inc. have jointly disclosed a passive beneficial ownership of 4.9% in Phio Pharmaceuticals Corp., primarily through warrants, as of December 31, 2024.

Summary

• CVI Investments, Inc. and Heights Capital Management, Inc. (collectively, the "Reporting Persons") have filed an Amendment No. 1 to Schedule 13G regarding their beneficial ownership in Phio Pharmaceuticals Corp.
• As of December 31, 2024, the Reporting Persons collectively beneficially own 90,988 shares of Phio Pharmaceuticals Corp. common stock.
• This ownership represents 4.9% of the company's outstanding common stock.
• The beneficial ownership is primarily derived from shares issuable upon the exercise of warrants.
• The warrants are subject to a limitation preventing their exercise if it would result in beneficial ownership exceeding 4.99% for the Reporting Persons and their affiliates.
• Phio Pharmaceuticals Corp. had 1,732,411 shares outstanding as of December 31, 2024, as indicated in its Prospectus Supplement filed on January 14, 2025.
• Heights Capital Management, Inc. serves as the investment manager to CVI Investments, Inc. and exercises shared voting and dispositive power over the reported shares.
• The filing certifies that the securities were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer.

Sentiment

Score: 5

Explanation: The document is a routine SEC Schedule 13G filing, which is a factual disclosure of beneficial ownership and does not inherently convey positive or negative sentiment regarding the issuer's performance or outlook.

Positives

• The investment is classified as passive, indicating no intent by the Reporting Persons to influence or change control of Phio Pharmaceuticals Corp.

Negatives

• No specific negative financial or operational details about Phio Pharmaceuticals Corp. are disclosed in this ownership filing.

Risks

• The beneficial ownership is primarily through warrants, which are subject to an exercise limitation preventing the Reporting Persons from exceeding 4.99% beneficial ownership of the company's common stock.

Future Outlook

NA

Management Comments

• The Reporting Persons certify that the securities were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of Phio Pharmaceuticals Corp.
• Heights Capital Management, Inc. serves as the investment manager to CVI Investments, Inc. and as such may exercise voting and dispositive power over the shares reported.

Industry Context

This Schedule 13G filing is a routine disclosure of passive beneficial ownership, common in the investment industry for funds holding less than 5% of a company's stock without intent to influence control. It does not provide specific insights into broader industry trends for Phio Pharmaceuticals Corp.'s sector.

Stakeholder Impact

• Shareholders: Provides transparency regarding significant passive ownership by institutional investors.

Key Dates

Keywords

Phio Pharmaceuticals Corp., CVI Investments Inc., Heights Capital Management Inc., Schedule 13G, beneficial ownership, common stock, warrants, passive investment, SEC filing