SCHEDULE: Investment Group Discloses 5.03% Stake in Sequans

A group of investors led by Daniel Asher has disclosed a passive 5.03% beneficial ownership stake in Sequans Communications, totaling 82.88 million ordinary shares.

Summary

• Reporting persons, including Daniel Asher, Intracoastal Capital, LLC, AFO Blackberry, LLC, AFOB FIP MS, LLC, SPHINX TRADING LP, and DBA TRADING LLC, have filed a Schedule 13G.
• The group collectively beneficially owns 82,882,580 ordinary shares of Sequans Communications.
• This ownership represents 5.03% of the company's Ordinary Shares, nominal value Euro 0.01 per share.
• The filing indicates a passive investment, with a certification that the securities were not acquired for the purpose of changing or influencing control of the issuer.
• Transactions between July 18, 2025, and September 16, 2025, show a net increase in holdings, starting from 7,028,157 American Depositary Receipts (ADRs) and ending at 8,288,258 ADRs.

Sentiment

Score: 7

Explanation: The disclosure of a significant passive stake by a group of investors, coupled with a net increase in their holdings over the reporting period, generally indicates a positive sentiment towards the company's value proposition from these investors. However, it does not reflect the company's operational or financial performance.

Positives

• A group of investors has taken a significant passive stake, indicating confidence in the company's long-term prospects.
• The group's beneficial ownership exceeds the 5% threshold, making it a notable institutional investment.
• The reporting persons increased their holdings between July and September 2025, suggesting continued interest and accumulation.

Risks

• The filing explicitly states that the securities were not acquired for the purpose of changing or influencing control of the issuer, mitigating immediate governance risks from this group.

Future Outlook

The filing is a disclosure of current beneficial ownership and does not provide any forward-looking statements or guidance from Sequans Communications or the reporting persons regarding the company's future performance or strategic direction.

Management Comments

• Daniel Asher and Fred Goldman certified that, to the best of their knowledge and belief, the information set forth in the statement is true, complete, and correct.
• The reporting persons certified 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 of the securities.

Industry Context

This filing reflects a significant passive investment by a group of investors in Sequans Communications, a company operating in the semiconductor or wireless communications industry. Such a stake by a passive investor group typically signals a belief in the company's long-term value proposition within its sector, without indicating any immediate strategic or operational changes.

Comparison to Industry Standards

• This filing is a standard Schedule 13G disclosure, indicating a passive investment exceeding 5% of a company's outstanding shares. It does not provide financial results or operational metrics that can be directly compared to industry benchmarks or competitors like Ericsson, Nokia, Qualcomm, or Intel. The significance lies in the disclosed ownership level, which is a common threshold for regulatory reporting.

Stakeholder Impact

• Shareholders: The disclosure of a significant passive stake by a group of investors may be viewed positively, potentially signaling confidence in the company's value.
• Management: The filing indicates a passive investment, suggesting no immediate intent to influence management or corporate strategy.

Next Steps

• The reporting persons will continue to monitor their investment in Sequans Communications. Future filings (e.g., Schedule 13D if they become active, or subsequent 13G amendments) would be required if their ownership percentage changes significantly or if their investment intent shifts.

Key Dates

Recommendation

The filing indicates a significant passive investment by a group of entities, suggesting these investors see long-term value in Sequans Communications. While this is a positive signal of investor confidence and increased institutional ownership, the filing itself does not provide new operational or financial data to warrant a 'buy' or 'sell' recommendation. It primarily confirms a substantial, non-controlling stake, which typically supports a 'hold' stance for existing investors and encourages further due diligence for potential new investors.

Keywords

Sequans Communications, SQNS, Schedule 13G, Beneficial Ownership, Passive Investment, Daniel Asher, Intracoastal Capital, AFO Blackberry, AFOB FIP MS, SPHINX TRADING, DBA TRADING, Equity Stake, SEC Filing