SCHEDULE: Chiliz Group Boosts Stake in Processa Pharma to 13%

The Chiliz Group Ltd. has increased its beneficial ownership in Processa Pharmaceuticals, Inc. to 13.0% through a recent share purchase.

Summary

• The Chiliz Group Ltd. (formerly HX Entertainment Ltd.) now beneficially owns 305,644 shares of Processa Pharmaceuticals, Inc. Common Stock.
• This represents approximately 13.0% of the Issuer's outstanding Common Stock.
• The aggregate purchase price for all shares beneficially owned by The Chiliz Group is approximately $1,443,784.
• The Chiliz Group acquired an additional 86,956 shares on February 13, 2026, at $2.30 per share, for an aggregate purchase price of $200,000.
• This recent acquisition follows a previous purchase of shares in August 2025, which, after a 1-for-25 reverse stock split effective December 16, 2025, adjusted to 218,688 shares.
• The funds used for these purchases were derived from The Chiliz Group's working capital and investment funds.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive signal, as a significant existing shareholder has increased their stake, reinforcing their confidence and providing additional capital to the company.

Positives

• A significant shareholder, The Chiliz Group, has increased its stake in Processa Pharmaceuticals, indicating continued confidence in the company's strategic direction.
• The additional investment of $200,000 provides Processa Pharmaceuticals with further capital.
• The Chiliz Group's stated purpose remains consistent with its previously disclosed strategic interest in the Issuer, suggesting a stable and committed investor.

Future Outlook

The Chiliz Group's additional investment is consistent with its previously disclosed investment purpose and strategic interest in Processa Pharmaceuticals, suggesting a continued long-term engagement and belief in the Issuer's future prospects.

Management Comments

• The Chiliz Group is controlled by Alexandre Dreyfus, who serves as Chief Executive Officer of Chiliz Group, Socios.com, and Qamar Ventures.
• Mr. Dreyfus is a prominent entrepreneur in the blockchain and cryptocurrency industry.
• The additional investment is consistent with The Chiliz Group's previously disclosed investment purpose and strategic interest in the Issuer.

Industry Context

StockSavvy.ai notes that The Chiliz Group, primarily known for its involvement in the blockchain and cryptocurrency industry through entities like Socios.com, continues to deepen its investment in Processa Pharmaceuticals, a company in the pharmaceutical sector. This cross-industry investment highlights a potential diversification strategy for The Chiliz Group or a specific strategic interest in Processa's pipeline or technology, potentially leveraging blockchain applications in healthcare or simply as a strategic financial investment.

Comparison to Industry Standards

• This filing primarily details an investor's increased stake rather than operational results, making direct comparisons to industry-standard financial performance metrics less applicable.
• StockSavvy.ai observes that a 13.0% stake is a significant position for an institutional investor, often signaling a strong conviction in the company's long-term value proposition.
• While not explicitly an activist filing, such a substantial stake can provide the investor with considerable influence, similar to positions taken by activist funds in other sectors seeking to drive strategic changes or unlock shareholder value.

Related Party Transactions

• The Chiliz Group Ltd. entered into a Securities Purchase Agreement with Processa Pharmaceuticals, Inc. on February 13, 2026, to purchase 86,956 shares of Common Stock for $200,000. This transaction is the subject of the filing and represents a direct dealing between the reporting person and the Issuer.

Stakeholder Impact

• Shareholders: The increased stake by a major investor could be perceived as a vote of confidence, potentially positively influencing market sentiment and share price.
• Company (Processa Pharmaceuticals): Receives additional capital ($200,000) to support operations or strategic initiatives.
• The Chiliz Group: Strengthens its strategic position and influence as a significant shareholder in Processa Pharmaceuticals.

Key Dates

Recommendation

The increased stake by a significant, strategic investor like The Chiliz Group signals strong conviction in Processa Pharmaceuticals' long-term prospects and strategic direction. This additional investment, consistent with prior stated interests, provides a positive endorsement and fresh capital, making the stock a potential 'buy' for investors looking for companies with strong institutional backing.

Keywords

Processa Pharmaceuticals, Chiliz Group, HX Entertainment, Schedule 13D, Beneficial Ownership, Common Stock, Investment, Pharmaceuticals, Blockchain, Alexandre Dreyfus