SCHEDULE: ADAR1 Entities Disclose 9.9% Stake in Grace Therapeutics

ADAR1 Capital Management, ADAR1 Capital Management GP, and Daniel Schneeberger have reported a 9.9% beneficial ownership stake in Grace Therapeutics, Inc. as of September 30, 2025.

Summary

• ADAR1 Capital Management, LLC, ADAR1 Capital Management GP, LLC, and Daniel Schneeberger collectively reported beneficial ownership of 9.9% of Grace Therapeutics, Inc.'s common stock.
• This ownership is based on 14,128,562 shares of common stock outstanding as of September 30, 2025, as reported in the Issuer's 10Q filed on November 13, 2025.
• ADAR1 Capital Management, LLC and Daniel Schneeberger each beneficially own 1,529,200 shares, which includes 304,916 common shares held by ADAR1 Partners, LP, 45,534 common shares held by Spearhead Insurance Solutions IDF, LLC, and 1,178,750 shares underlying prefunded and milestone warrants.
• ADAR1 Capital Management GP, LLC beneficially owns 1,534,254 shares, consisting of 304,916 common shares held by ADAR1 Partners, LP and 1,229,338 shares underlying prefunded and milestone warrants.
• The reported beneficial ownership excludes additional shares underlying prefunded and milestone warrants that are subject to a 9.99% beneficial ownership limitation, preventing the reporting persons from exceeding this threshold.

Sentiment

Score: 5

Explanation: The filing is a factual disclosure of beneficial ownership and does not contain information that would inherently indicate a strong positive or negative sentiment regarding the issuer's performance or prospects. It simply reports a significant stake by an institutional investor.

Positives

• A significant institutional investor, ADAR1 Capital Management, has disclosed a substantial 9.9% stake in Grace Therapeutics, Inc., potentially signaling confidence in the company's long-term prospects.
• The beneficial ownership includes a mix of common stock and shares underlying prefunded and milestone warrants, indicating a structured investment approach.

Future Outlook

NA

Management Comments

• By signing below I certify that, to the best of my knowledge and belief, 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

This filing indicates continued institutional interest in the biotechnology or pharmaceutical sector, specifically in companies like Grace Therapeutics, Inc. The acquisition of a significant stake by an investment manager suggests a belief in the company's potential within its specific market segment, aligning with broader trends of specialized investment in growth-oriented life sciences firms.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake may be viewed positively by other shareholders, potentially increasing confidence and attracting further investment.
• Management: Management may perceive this as a vote of confidence from a sophisticated investor, but also as increased scrutiny.

Next Steps

• ADAR1 Capital Management, LLC, ADAR1 Capital Management GP, LLC, and Daniel Schneeberger will be required to file an amendment to this Schedule 13G if their beneficial ownership percentage changes by more than 1% or if they cease to be eligible to file on Schedule 13G.

Key Dates

Keywords

Grace Therapeutics, ADAR1 Capital Management, Beneficial Ownership, Schedule 13G, Institutional Investor, Common Stock, Warrants, SEC Filing, Equity Stake