SCHEDULE: Streeterville Capital Discloses 9.99% Stake in Xiao-I Corp

Streeterville Capital LLC has filed a Schedule 13G reporting a 9.99% beneficial ownership stake in Xiao-I Corp via a convertible promissory note.

Summary

• Streeterville Capital LLC, along with Streeterville Management LLC and John M. Fife, reported beneficial ownership of 5,518,004 ordinary shares of Xiao-I Corp.
• The reported stake represents 9.99% of the company's outstanding shares, based on 55,235,284 shares outstanding as of December 31, 2025.
• The ownership interest is derived from rights under a convertible promissory note.
• The reporting persons have contractually capped their ownership at 9.99%.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral regulatory disclosure regarding ownership stakes, typical of institutional investment activity.

Positives

• The filing indicates institutional interest in the company's convertible debt instruments.

Negatives

• The existence of convertible debt instruments can lead to future shareholder dilution upon conversion.

Risks

• Potential for future equity dilution if the convertible promissory note is exercised.
• The reporting entity holds a significant 9.99% stake, which may influence market perception of the stock's liquidity.

Future Outlook

The filing does not provide operational guidance but confirms the existence of a convertible instrument that allows the holder to acquire additional shares up to a 9.99% cap.

Industry Context

StockSavvy.ai notes that the use of convertible promissory notes by investment firms like Streeterville is a common financing mechanism for growth-stage companies, often signaling a need for capital but potentially creating an overhang of future equity issuance.

Comparison to Industry Standards

• The 9.99% ownership cap is a standard provision in private investment in public equity (PIPE) transactions to avoid triggering change-in-control or significant regulatory reporting thresholds.

Stakeholder Impact

• Existing shareholders may face dilution if the convertible note is converted into equity.

Next Steps

• Potential future conversion of the promissory note into ordinary shares.

Key Dates

Keywords

Xiao-I Corp, Streeterville Capital, Schedule 13G, Convertible Note, Beneficial Ownership, Equity Dilution