SCHEDULE: Readout Capital Boosts Stake in Precision BioSciences

Readout Capital and affiliated entities, including Matthew Smith, have disclosed a significant beneficial ownership stake of up to 9.4% in Precision BioSciences Inc.

Summary

• Readout Capital, LP, Readout Capital GP, LLC, ROC Holdings SPV II, LP, Readout Holdings GP, LLC, and Matthew Smith (collectively, the "Reporting Persons") have filed an Amendment No. 1 to Schedule 13G.
• As of June 30, 2025, Matthew Smith beneficially owned 1,119,311 shares of Precision BioSciences Inc. common stock, representing 9.4% of the class outstanding.
• Readout Capital, LP and Readout Capital GP, LLC each beneficially owned 1,106,437 shares, representing 9.3% of the class.
• ROC Holdings SPV II, LP and Readout Holdings GP, LLC each beneficially owned 906,437 shares, representing 7.6% of the class.
• The percentages are based on 11,636,981 shares of common stock outstanding as of June 30, 2025, as disclosed in the Issuer's Form 10-Q filed on August 7, 2025, plus 220,000 shares issuable upon exercise of warrants directly held by ROC SPV II.
• ROC Holdings SPV II, LP directly held 686,437 shares of common stock and warrants exercisable for 220,000 shares.
• Readout Capital serves as investment manager for ROC SPV II and a managed account holding 200,000 shares.
• Matthew Smith directly held 12,874 shares of common stock.
• The Reporting Persons certify that the securities were not acquired and are not held for the purpose of changing or influencing control of the issuer, other than activities solely in connection with a nomination under Rule 14a-11.

Sentiment

Score: 7

Explanation: The filing indicates a significant and continued institutional investment in Precision BioSciences, which is generally viewed as a positive signal of investor confidence. While it's a passive filing, the substantial stake suggests a belief in the company's long-term value.

Positives

• A significant beneficial ownership stake by institutional investors like Readout Capital and its affiliates can signal confidence in the company's long-term prospects.
• The inclusion of warrants in the reported ownership suggests a prior investment that could convert to additional equity, potentially strengthening the investor's commitment.

Future Outlook

NA

Industry Context

This filing indicates a notable institutional investment in Precision BioSciences, a company operating in the biotechnology and gene editing sector. Such investments are common in the biotech industry, where long-term capital is often required for research, development, and clinical trials. The presence of a significant institutional holder can be viewed as a vote of confidence in the company's technology and pipeline, potentially attracting further investor interest.

Stakeholder Impact

• Shareholders: Increased institutional ownership may provide stability and a vote of confidence, potentially attracting other investors and influencing share price positively.
• Company Management: The presence of a significant shareholder group, even if passive, implies increased oversight and potential for engagement on corporate governance matters, particularly concerning director nominations.

Key Dates

Recommendation

The filing is a disclosure of beneficial ownership, not a financial performance report. While a significant institutional stake can be a positive signal, it does not provide enough information to warrant a 'buy' or 'sell' recommendation. It primarily confirms a substantial existing investment by Readout Capital and its affiliates, suggesting a 'hold' position for existing investors pending further operational or financial updates from Precision BioSciences.

Keywords

Precision BioSciences, Readout Capital, Beneficial Ownership, SEC Filing, Common Stock, Institutional Investor, Biotechnology, Gene Editing, Shareholder Stake