Form 4: Frankenius Equity AB Increases Potential Common Stock Holdings in TriSalus Life Sciences Due to Conversion Price Reset

Frankenius Equity AB, a 10% owner of TriSalus Life Sciences, has reported an increase in the number of common stock shares issuable upon conversion of their Series A Convertible Preferred Stock due to a conversion price reset.

Summary

• Frankenius Equity AB, a 10% owner of TriSalus Life Sciences, filed a Form 4 on February 11, 2025, reporting a change in beneficial ownership.
• The change is due to a reset of the conversion price of their Series A Convertible Preferred Stock, effective February 10, 2025.
• The conversion price was reset to $5.277 per share, according to the terms outlined in the Issuer's Certificate of Designations, Preferences and Rights of Series A Convertible Preferred Stock filed on August 10, 2023.
• This reset increased the number of common stock shares issuable upon conversion of the preferred stock by 205,853 shares.
• After the reset, the Preferred Stock is convertible into 435,853 shares of Common Stock.
• All outstanding shares of Preferred Stock will automatically convert into Common Stock on August 10, 2027.

Sentiment

Score: 6

Explanation: The document reflects a routine adjustment in the conversion price of preferred stock, which is neither overwhelmingly positive nor negative. It's a contractual mechanism playing out as expected.

Positives

• The conversion price reset allows Frankenius Equity AB to potentially acquire more common stock, which could be seen as a positive sign of their confidence in TriSalus Life Sciences.

Future Outlook

The document outlines the future conversion of preferred stock to common stock, indicating a potential increase in the number of outstanding common shares by August 10, 2027.

Industry Context

This filing reflects standard investment activity related to convertible securities, which are common in the life sciences industry, particularly for companies seeking growth capital. The conversion price reset is a contractual mechanism designed to protect investors or adjust the conversion ratio based on certain events.

Comparison to Industry Standards

• Conversion price resets are a common feature in convertible preferred stock agreements, particularly in the biotech and life sciences sectors.
• These resets are often tied to milestones, market conditions, or financial performance.
• Similar structures can be observed in investments made by venture capital firms in companies like Moderna or BioNTech during their early stages.

Stakeholder Impact

• Shareholders may see a dilution of their ownership stake as more common shares become potentially available upon conversion of the preferred stock.

Key Dates