SCHEDULE: Fairmount Funds Management Boosts Viridian Therapeutics Stake

Fairmount Funds Management LLC and its affiliate have increased their beneficial ownership in Viridian Therapeutics, Inc. to 14.04% following a recent public offering.

Summary

• Fairmount Funds Management LLC and Fairmount Healthcare Fund II GP LLC (collectively, the "Reporting Persons") have filed an amendment to their Schedule 13D, reporting an increase in their beneficial ownership of Viridian Therapeutics, Inc. common stock.
• The Reporting Persons now beneficially own 17,201,800 shares of common stock, representing 14.04% of the outstanding shares as of May 11, 2026.
• This holding includes 5,090,928 shares of common stock and 12,110,872 shares issuable upon conversion of Series A and Series B Preferred Stock.
• On May 11, 2026, Fairmount Healthcare Fund II GP LLC purchased 1,176,470 shares of common stock in an underwritten public offering for $19,999,990.00, at a price of $17 per share.
• The purchase was funded by working capital.
• The Reporting Persons have entered into a 60-day lock-up agreement with the underwriters, restricting the sale of company securities without consent.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this filing as moderately positive, reflecting increased investment and confidence from a significant institutional holder, though tempered by the standard lock-up restrictions.

Positives

• Fairmount Funds Management has increased its investment in Viridian Therapeutics, indicating confidence in the company's prospects.
• The acquisition of 1,176,470 shares at $17 per share for a total of $19,999,990.00 demonstrates significant capital deployment.
• The increased stake to 14.04% signifies a substantial beneficial ownership position.

Negatives

• The lock-up agreement restricts the ability to sell shares for 60 days, potentially limiting liquidity for the Reporting Persons in the short term.

Risks

• The conversion of Series A and Series B Preferred Stock is subject to a beneficial ownership limitation of 19.99% of the outstanding Common Stock, which could affect the full conversion of these holdings.
• The lock-up agreement imposes restrictions on selling shares for a period of 60 days from the date of the company's final prospectus supplement.

Future Outlook

The filing does not contain specific forward-looking statements or guidance from the company. It primarily details an investment transaction and associated agreements by Fairmount Funds Management.

Management Comments

• Fairmount and Fairmount GP II disclaim beneficial ownership of such shares of Common Stock, Series A Preferred Stock and Series B Preferred Stock except to the extent of their pecuniary interest therein.
• Fund II purchased the shares of Common Stock referenced in Item 3 for investment purposes.

Industry Context

StockSavvy.ai notes that significant stake building by institutional investors, as demonstrated by Fairmount Funds Management's increased ownership in Viridian Therapeutics, often signals conviction in the company's technology or market position within the biotechnology sector.

Stakeholder Impact

• Shareholders: The increased stake by Fairmount Funds Management may be interpreted as a positive signal, potentially influencing investor sentiment. However, the lock-up agreement limits immediate selling pressure from this holder.
• Creditors: No direct impact on creditors is indicated in this filing.
• Employees: No direct impact on employees is indicated in this filing.
• Suppliers: No direct impact on suppliers is indicated in this filing.
• Customers: No direct impact on customers is indicated in this filing.

Next Steps

• Fairmount Funds Management will be subject to the 60-day lock-up agreement, restricting the sale of acquired shares.
• The company's future performance and strategic developments will influence the Reporting Persons' subsequent investment decisions.

Key Dates

Recommendation

The filing indicates a significant investment by Fairmount Funds Management, which can be seen as a positive signal. However, the information is primarily transactional (a purchase in a public offering and a lock-up agreement) and does not provide new strategic insights or performance data for Viridian Therapeutics itself. Therefore, a 'hold' recommendation is appropriate, pending further company-specific developments.

Keywords

Viridian Therapeutics, Schedule 13D, Fairmount Funds Management, Beneficial Ownership, Common Stock, Preferred Stock, Public Offering, Lock-Up Agreement, SEC Filing, Investment