SCHEDULE 13G/A: Nantahala Capital Discloses 5.18% Stake in Surrozen

Nantahala Capital Management, along with Wilmot B. Harkey and Daniel Mack, reported a 5.18% beneficial ownership stake in Surrozen, Inc. common stock.

Summary

• Nantahala Capital Management, LLC, Wilmot B. Harkey, and Daniel Mack (the "Reporting Persons") collectively hold a beneficial ownership of 455,299 shares of Surrozen, Inc. common stock.
• This ownership represents 5.18% of the total class of Surrozen, Inc. common stock outstanding.
• The reported shares include 225,772 shares that the Reporting Persons may acquire within sixty days through the exercise of warrants.
• Nantahala Capital Management, LLC is a Massachusetts limited liability company, while Messrs. Harkey and Mack are U.S. citizens.
• The Reporting Persons affirm that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of Surrozen, Inc.

Sentiment

Score: 7

Explanation: The disclosure of a significant 5.18% stake by an institutional investor, including potential future ownership via warrants, generally indicates a positive sentiment and confidence in the company's prospects from the reporting entity's perspective.

Positives

• A significant beneficial ownership stake of 5.18% by an institutional investment manager (Nantahala Capital Management) signals confidence in Surrozen, Inc.
• The inclusion of 225,772 shares acquirable through warrants indicates potential for increased future ownership by the Reporting Persons.

Risks

• This filing, a Schedule 13G, primarily discloses beneficial ownership and does not detail specific operational or financial risks pertaining to Surrozen, Inc.

Future Outlook

NA

Industry Context

This filing indicates continued or new institutional interest in Surrozen, Inc. from Nantahala Capital Management, a firm known for its investments in the healthcare and biotechnology sectors. Such disclosures are common and reflect ongoing portfolio adjustments by investment funds.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional holder may instill confidence and potentially influence trading activity.
• Management: Awareness of a substantial shareholder may influence strategic decisions, though the filing states no intent to influence control.

Key Dates

Recommendation

The filing is a disclosure of beneficial ownership by an institutional investor, not a performance report. While a significant stake can be seen as a positive signal of confidence, it does not provide new operational or financial data to warrant a 'buy' or 'sell' recommendation. A 'hold' recommendation reflects the continued interest from a major investor without new fundamental catalysts.

Keywords

Surrozen Inc., Nantahala Capital Management, Beneficial Ownership, SEC Filing, Common Stock, Investment Management, Warrants, Institutional Investor