SCHEDULE 13D/A: Farnam Group Reduces Stake in Pro-Dex Inc. to 9.8% Through Recent Share Sales

Farnam Street Partners and its affiliates, collectively known as the Farnam Group, have filed an Amendment No. 12 to their Schedule 13D, disclosing a reduction in their beneficial ownership of Pro-Dex Inc. common stock to 9.8% following a series of open market sales in January 2025.

Summary

• Farnam Street Partners, L.P., Farnam Street Capital, Inc., Raymond E. Cabillot, and Peter O. Haeg (the "Farnam Group") have filed an Amendment No. 12 to their Schedule 13D regarding their beneficial ownership in Pro-Dex Inc. (the "Issuer").
• The Farnam Group collectively beneficially owns 319,752 shares of Pro-Dex Inc. Common Stock, representing approximately 9.8% of the outstanding shares.
• This percentage is based on 3,259,338 shares outstanding as of October 31, 2024, as reported in the Issuer's Form 10-Q.
• The filing indicates that the shares were originally acquired for investment purposes in the ordinary course of business.
• Between January 10, 2025, and January 28, 2025, Farnam Fund executed multiple open market sales, disposing of a total of 49,074 shares of Pro-Dex Inc. common stock.
• Sale prices ranged from a weighted average of $41.44 to $47.76 per share.
• Raymond E. Cabillot, a member of the Farnam Group, also serves as a director of Pro-Dex Inc.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the significant share sales by a major investor, which could imply a reduced level of confidence or a strategic shift by the Farnam Group. However, it is primarily a factual disclosure of ownership changes.

Negatives

• A significant shareholder, the Farnam Group, has reduced its stake in Pro-Dex Inc. by selling 49,074 shares in January 2025, which could be interpreted by the market as a lack of confidence or a strategic divestment.

Future Outlook

The reporting persons may, at any time and from time to time, review or reconsider their positions and formulate plans or proposals with respect to Pro-Dex Inc. stock, including potentially purchasing additional shares or disposing of all or some of their current holdings.

Industry Context

This Schedule 13D filing reflects a change in a significant investor's stake in Pro-Dex Inc., a medical device and industrial technology company. Such filings are common disclosures of investor activity and do not directly comment on broader industry trends but can signal investor sentiment towards a specific company within its sector.

Corporate Governance

Legal Proceedings

• Neither Farnam Fund nor the principals of its General Partner have been convicted in a criminal proceeding (excluding traffic violations and similar misdemeanors) during the last five years.
• Neither Farnam Fund nor the principals of its General Partner have been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction resulting in a judgment, decree, or final order enjoining future violations of, prohibiting, or mandating activity subject to federal or state securities laws, or finding any violation with respect to such laws, during the last five years.

Related Party Transactions

• Farnam Capital, as the General Partner of Farnam Fund, is entitled to an allocation of a portion of profits and a management fee based upon a percentage of total capital from Farnam Fund.
• Messrs. Cabillot and Haeg are indemnified by Farnam Fund and Farnam Capital for liabilities they may incur in connection with their respective duties for the Farnam Group.

Stakeholder Impact

• Shareholders: The reduction in stake by a significant investor could lead to negative market sentiment and potentially impact share price.
• Management: The continued presence of Raymond Cabillot on the board, despite the group's share sales, indicates ongoing oversight and potential influence from the Farnam Group.

Next Steps

• Farnam Capital may from time to time purchase additional shares of the Company's stock or dispose of all or some of the shares.

Key Dates

Keywords

Pro-Dex Inc., Farnam Street Partners, Schedule 13D, Beneficial Ownership, Share Sales, Investment, SEC Filing, Common Stock, Shareholder Activity