SCHEDULE: Anson Funds Discloses 9.9% Stake in Empery Digital

Anson Funds Management LP and its affiliates have reported a 9.9% beneficial ownership stake in Empery Digital Inc., totaling 4,495,268 shares.

Summary

• Anson Funds Management LP, Anson Management GP LLC, Tony Moore, Anson Advisors Inc., Amin Nathoo, and Moez Kassam (collectively, "Anson Funds") have filed a Schedule 13G.
• Anson Funds collectively beneficially own 4,495,268 shares of Empery Digital Inc.'s Common Stock.
• This ownership represents 9.9% of the outstanding Common Stock of Empery Digital Inc.
• The beneficial ownership includes shares underlying outstanding warrants, which are subject to a 9.99% beneficial ownership limitation.
• 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 Empery Digital Inc.

Sentiment

Score: 7

Explanation: The disclosure of a significant passive stake by a reputable investment group like Anson Funds is generally a positive signal for the company, indicating institutional confidence without implying activist intent.

Positives

• A significant institutional investment by Anson Funds, a notable investment group, indicates a vote of confidence in Empery Digital Inc.
• The substantial stake could attract further investor attention to Empery Digital Inc.

Risks

• Warrants held by the reporting persons include a beneficial ownership limitation, preventing exercise if it would result in ownership exceeding 9.99% of the outstanding Common Stock.

Future Outlook

This filing does not contain forward-looking statements or guidance from Empery Digital Inc. It is a disclosure of a passive ownership stake by an investment group.

Management Comments

• The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11.

Industry Context

A significant passive stake by an investment fund like Anson Funds can signal increased institutional interest in the digital sector or in Empery Digital Inc. specifically, potentially attracting further investor attention and validating the company's market position.

Comparison to Industry Standards

• A 9.9% stake is a substantial passive investment, often viewed as a strong endorsement by institutional investors in the market.
• The beneficial ownership limitation of 9.99% on warrants is a common practice among institutional investors to avoid triggering certain regulatory thresholds or activist investor classifications.

Stakeholder Impact

• Shareholders: May view the significant institutional investment as a positive indicator of the company's value and potential, potentially increasing investor confidence.
• Management: The company's management now has a large, passive institutional shareholder, which could indirectly influence strategic decisions through market perception and increased scrutiny.

Key Dates

Recommendation

The filing indicates a significant institutional investment in Empery Digital Inc. by Anson Funds, which is generally a positive signal of confidence. However, as a Schedule 13G, it explicitly states a passive investment intent, meaning Anson Funds does not seek to influence control. While the large stake is a positive endorsement, the filing itself does not provide new operational or financial performance data to warrant a 'buy' or 'sell' recommendation. Therefore, a 'hold' recommendation is appropriate, acknowledging the positive institutional interest while awaiting further operational updates from Empery Digital Inc.

Keywords

Empery Digital Inc., Anson Funds Management LP, Schedule 13G, Beneficial Ownership, Common Stock, Institutional Investment, SEC Filing, Digital