Form 4: Tempus AI Director Bradley Keywell Reports Conversion of Preferred Stock to Class A Common Stock Following IPO

Director Bradley Keywell reports the conversion of preferred stock to Class A common stock and acquisition of additional shares following Tempus AI's IPO.

Summary

• On June 17, 2024, Bradley Keywell, a director of Tempus AI, Inc., reported transactions related to the conversion of preferred stock into Class A Common Stock following the company's initial public offering (IPO).
• Keywell, through BK TL21 LLC, converted Series A, B-1, B-2, C, D, and G Preferred Stock into Class A Common Stock on a one-for-one basis.
• The total amount of Class A Common Stock beneficially owned following the reported transactions is 16,560,249 shares, which includes 2,169,419 shares acquired through conversion and an additional 15,830 shares acquired due to accrued and unpaid dividends paid in shares of Class A Common Stock.
• These transactions are reported on Form 4, filed with the SEC, and the issuance of shares due to the dividend payment qualifies for an exemption under Rule 16a-9 of the Securities Exchange Act.

Sentiment

Score: 7

Explanation: The document primarily reports routine transactions related to an IPO, which is generally a positive event. The conversion of preferred stock to common stock is a standard procedure. The large number of shares owned by the reporting person is a positive sign.

Positives

• The conversion of preferred stock to common stock simplifies the capital structure of Tempus AI following its IPO.
• The additional shares acquired due to dividend payments represent a return of value to the holder.
• The reporting person's beneficial ownership of a significant number of shares may indicate confidence in the company's future prospects.

Industry Context

Following an IPO, it is common for preferred stock to be converted into common stock to streamline the company's capital structure and align the interests of all shareholders.

Stakeholder Impact

• The conversion of preferred stock to common stock may have a minor impact on shareholders due to the change in the capital structure.
• The conversion simplifies the capital structure, which is generally viewed positively by investors.

Key Dates