CEO Chris Kim's Valetudo Receives 3.4M Shares and Preferred Stock Convertible into 490M Shares in InnocsAI Deal
LIMN is trading near its 52-week low of $0.095 (6.2% above the low) on light trading volume (0.1× avg).
Summary
CEO Chris Kim's Valetudo Therapeutics received 3.4M common shares and Series A Preferred Stock convertible into 490M shares as consideration in the InnocsAI acquisition, giving Kim potential control of nearly all fully diluted shares.
Key Events · Ownership and Investor Activity · LIMN
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Valetudo Receives 3.4M Common Shares
Valetudo Therapeutics, controlled by CEO Chris Kim, acquired 3,448,926 common shares as part of the InnocsAI acquisition consideration, valued at approximately $348,000 based on the current stock price.
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Preferred Stock Convertible into 490M Shares
Valetudo also received 48,975.10742 shares of Series A Non-Voting Convertible Preferred Stock, each convertible into 10,000 common shares at $0.20 per share, totaling 489.75 million potential common shares — a stake worth $98 million at the conversion price.
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Potential 99% Dilution and Control Shift
If the preferred stock is fully converted, Valetudo would hold approximately 495 million common shares, representing nearly 99% of the fully diluted shares, effectively giving CEO Kim control of the company and massively diluting existing shareholders.
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Conversion Contingent on Shareholder Approval
The conversion of the Series A Preferred Stock requires prior stockholder approval under Nasdaq listing rules, making the upcoming shareholder vote a critical event for existing investors.
Analysis · LIMN · Life Sciences
This Form 4 reveals the massive equity stake CEO Chris Kim's Valetudo Therapeutics received in the InnocsAI acquisition: 3.4 million common shares plus Series A Preferred Stock convertible into 490 million common shares at $0.20 each. The conversion is contingent on shareholder approval, but if approved, it would give Kim control of nearly 99% of the fully diluted shares, effectively making the acquisition a change-of-control transaction. The $348K value assigned to the common shares is based on the $0.1009 stock price, but the real story is the preferred stock, which at the $0.20 conversion price represents a potential $98 million equity stake — dwarfing the company's $5.2 million market cap. This filing quantifies the extreme dilution and control shift that the earlier 8-K only hinted at.
At the time of this filing, LIMN was trading at $0.10 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $5.2M. The 52-week trading range was $0.10 to $9.38. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.