SCHEDULE: Intracoastal Capital Group Discloses 9.99% Stake in Purple Biotech

Intracoastal Capital LLC, along with Mitchell P. Kopin and Daniel B. Asher, reported a 9.99% beneficial ownership stake in Purple Biotech Ltd. ordinary shares.

Summary

• Mitchell P. Kopin, Daniel B. Asher, and Intracoastal Capital LLC (collectively, the "Reporting Persons") have filed a Schedule 13G regarding their beneficial ownership in Purple Biotech Ltd.
• As of September 10, 2025, the Reporting Persons beneficially own an aggregate of 139,632,475 Ordinary Shares of Purple Biotech Ltd., representing approximately 9.99% of the class.
• This ownership includes 61,000,000 Ordinary Shares directly held by Intracoastal, 31,000,000 Ordinary Shares issuable upon exercise of Intracoastal Warrant 1, and 47,632,475 Ordinary Shares issuable upon exercise of Intracoastal Warrant 2.
• Both Intracoastal Warrant 1 and Intracoastal Warrant 2 contain blocker provisions, preventing exercise if it would result in beneficial ownership exceeding 9.99% of the Ordinary Shares.
• Immediately following the execution of a Securities Purchase Agreement (SPA) on September 4, 2025, the Reporting Persons were deemed to beneficially own 67,268,515 Ordinary Shares, also representing approximately 9.99%.
• The initial stake on September 4, 2025, included 67,000,000 shares to be issued and 268,515 shares from Intracoastal Warrant 1.
• The Reporting Persons certified that the securities were not acquired or held for the purpose of changing or influencing control of the issuer, other than activities solely related to a nomination under Rule 240.14a-11.

Sentiment

Score: 7

Explanation: The filing is a standard disclosure of a significant passive ownership stake. The investment itself (via SPA and warrants) is a positive for the company as it represents capital infusion, but the filing itself is purely informational about ownership structure. The blocker provision is a neutral structural element.

Positives

• A significant investment by a group of investors, potentially signaling confidence in Purple Biotech's future prospects.
• The investment structure, including warrants, provides potential for future capital infusion into the company as warrants are exercised.
• The inclusion of a 'blocker provision' indicates a strategic approach to maintain a passive investment below the 10% threshold, avoiding certain regulatory burdens.

Risks

• Potential for future dilution if the warrants are fully exercised, although the blocker provision limits immediate impact to 9.99% beneficial ownership.
• The existence of warrants and a Securities Purchase Agreement suggests the company may have recently raised capital, which could indicate a need for significant funding for operations or ongoing financial requirements.

Future Outlook

The Reporting Persons state that the securities were not acquired or held for the purpose of changing or influencing control of the issuer, other than activities solely in connection with a nomination under Rule 240.14a-11. This indicates a passive investment strategy, with no stated intention to actively manage or significantly alter the company's strategic direction beyond potential board nominations.

Management Comments

• The securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11.

Industry Context

This filing indicates a significant equity investment in a biotech company. Biotech companies often require substantial capital for research, development, and clinical trials, making equity financing a common method to fund operations. Large institutional investments like this can be a vote of confidence in a company's pipeline or strategic direction, especially in a capital-intensive industry.

Related Party Transactions

• The Securities Purchase Agreement (SPA) between Purple Biotech Ltd. and Intracoastal Capital LLC, Mitchell P. Kopin, and Daniel B. Asher, which led to the issuance of shares and warrants, constitutes a transaction between the issuer and significant shareholders.

Stakeholder Impact

• Shareholders: The investment by Intracoastal Capital LLC and its affiliates could be seen as a vote of confidence, potentially stabilizing or increasing share price. However, future warrant exercises could lead to dilution, albeit limited by the 9.99% blocker.
• Company (Purple Biotech Ltd.): The capital raised through the SPA and potential future warrant exercises provides funding for operations, research, and development.

Next Steps

• Continued monitoring of the exercise of Intracoastal Warrant 1 and Intracoastal Warrant 2, subject to the 9.99% blocker provisions.
• Potential future nominations to the board by the Reporting Persons, as indicated by their certification.

Key Dates

Recommendation

The filing discloses a significant passive ownership stake and a recent capital raise through a Securities Purchase Agreement and warrants. While the capital infusion is positive for the company, the filing itself is a disclosure of ownership structure rather than new operational or financial performance data. The 'blocker provision' limits immediate dilution impact. Without further information on the company's operational performance or strategic direction, a 'hold' recommendation is appropriate, acknowledging the positive capital event while awaiting more comprehensive financial updates.

Keywords

Purple Biotech Ltd., Intracoastal Capital LLC, Mitchell P. Kopin, Daniel B. Asher, Schedule 13G, beneficial ownership, ordinary shares, warrants, equity investment, biotech, SEC filing