Form 4: Upstream Bio Insider Filing: AI Upstream LLC Reports Conversion of Preferred Stock to Common Stock Following IPO

AI Upstream LLC, along with related entities and Len Blavatnik, reported the conversion of preferred stock to common stock in Upstream Bio, Inc. following the company's initial public offering.

Summary

• AI Upstream LLC filed a Form 4 with the SEC on October 17, 2024, reporting transactions in Upstream Bio, Inc. [UPB] common stock.
• The transactions occurred on October 15, 2024, and involve the conversion of Series A and Series B preferred stock into common stock at a ratio of 1.049-for-one following Upstream Bio's IPO.
• AI Upstream acquired 1,175,000 shares of common stock at $17 per share and also acquired 3,147,000 shares and 1,172,410 shares through the conversion of Series A and Series B preferred stock, respectively.
• Following these transactions, AI Upstream beneficially owns 5,494,410 shares of common stock.
• The filing also indicates that AI Biotechnology LLC, Access Industries Holdings LLC, Access Industries Management, LLC, and Len Blavatnik may be deemed to beneficially own these securities due to their relationships with AI Upstream, although they disclaim beneficial ownership except to the extent of their pecuniary interest.

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing related to insider transactions following an IPO. It doesn't inherently convey positive or negative sentiment, but rather reflects standard procedures.

Positives

• The conversion of preferred stock to common stock simplifies the capital structure of Upstream Bio following its IPO.
• The transactions indicate continued involvement and potential confidence from AI Upstream and related entities in Upstream Bio.

Industry Context

Form 4 filings are standard practice following significant transactions by company insiders, providing transparency to the market.

Stakeholder Impact

• The conversion of preferred stock to common stock could have a dilutive effect on existing shareholders.
• The filing provides transparency to shareholders regarding insider transactions.

Key Dates