Avalyn Pharma (NASDAQ: AVLN) major holder converts preferred into 1,275,486 common shares
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Wellington Biomedical Innovation Master Investors (Cayman) II L.P., a 10% owner of Avalyn Pharma Inc., reported converting its preferred stock into common shares. On May 1, 2026, it acquired 1,275,486 shares of Common Stock through the automatic conversion of Series C-1 and Series D Convertible Preferred Stock immediately prior to Avalyn’s initial public offering. Following these transactions, the reporting holder’s remaining position consists of common stock, with the preferred stock fully converted.
Positive
- None.
Negative
- None.
Insider Trade Summary
24,542,548 shares exercised/converted
Mixed
3 txns
Insider
Wellington Biomedical Innovation Master Investors (Cayman) II L.P.
Role
null
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Conversion | Series C-1 Convertible Preferred Stock | 20,482,289 | $0.00 | -- |
| Conversion | Series D Convertible Preferred Stock | 4,060,259 | $0.00 | -- |
| Conversion | Common Stock | 1,275,486 | $0.00 | -- |
Holdings After Transaction:
Series C-1 Convertible Preferred Stock — 0 shares (Direct, null);
Series D Convertible Preferred Stock — 0 shares (Direct, null);
Common Stock — 1,275,486 shares (Direct, null)
Footnotes (1)
- [object Object]
Key Figures
Common shares acquired: 1,275,486 shares
Series D preferred converted: 4,060,259 shares
Common underlying Series D: 211,013 shares
+3 more
6 metrics
Common shares acquired
1,275,486 shares
Common Stock held following conversion on May 1, 2026
Series D preferred converted
4,060,259 shares
Series D Convertible Preferred Stock converted into common
Common underlying Series D
211,013 shares
Common Stock underlying converted Series D preferred
Series C-1 preferred converted
20,482,289 shares
Series C-1 Convertible Preferred Stock converted into common
Common underlying Series C-1
1,064,473 shares
Common Stock underlying converted Series C-1 preferred
Conversion ratio
19.2417-for-one
Preferred Stock automatically converted into Common Stock at IPO
Key Terms
Conversion of derivative security, Series C-1 Convertible Preferred Stock, Series D Convertible Preferred Stock, initial public offering, +1 more
5 terms
Conversion of derivative security financial
"transaction_code_description: "Conversion of derivative security""
Series C-1 Convertible Preferred Stock financial
"security_title: "Series C-1 Convertible Preferred Stock""
Series D Convertible Preferred Stock financial
"security_title: "Series D Convertible Preferred Stock""
Series D convertible preferred stock is a class of shares issued in a later-stage funding round that gives holders priority over common shareholders for payouts and often a fixed dividend, while including an option to convert those shares into common stock. It matters to investors because it affects who gets paid first if a company is sold or liquidates and can change ownership stakes and voting power when converted, similar to holding a safer ticket that can be exchanged for regular tickets later.
initial public offering financial
"Immediately prior to the closing of the Issuer's initial public offering"
An initial public offering (IPO) is when a private company first sells its shares to the public and becomes a stock-listed company. It matters because it allows the company to raise money from a wide range of investors, helping it grow, while giving early shareholders a way to sell some of their ownership.
Preferred Stock financial
"collectively, the "Preferred Stock" automatically converted into shares"
Preferred stock is a type of ownership in a company that typically offers investors higher and more consistent dividend payments than common stock. Unlike regular shares, preferred stock usually doesn’t come with voting rights but provides a priority claim on the company’s assets and profits, making it a more stable and predictable investment option. This makes preferred stock attractive to those seeking steady income with lower risk.
