SCHEDULE: Armistice Capital & Steven Boyd Disclose 12.84% Kineta Stake

Armistice Capital and Steven Boyd have reported a significant beneficial ownership stake of 12.84% in Kineta, Inc., holding 1,823,138 shares.

Summary

• Armistice Capital, LLC and Steven Boyd (collectively, the "Reporting Persons") beneficially own 1,823,138 shares of Kineta, Inc. Common Stock.
• This ownership represents 12.84% of the class, as stated in Item 4 of the filing. However, the cover page of the filing indicates 3.64% of the class.
• The percentage is stated to be based on 1,823,138 shares outstanding as of March 28, 2025, as reported in Kineta's Form 10-K filed March 31, 2025. (Note: The number of shares outstanding is incorrectly stated as the number of shares beneficially owned in the filing's explanation).
• The Reporting Persons hold shared voting power and shared dispositive power over all 1,823,138 shares.
• Armistice Capital, LLC acts as the investment manager for Armistice Capital Master Fund Ltd., which is the direct holder of the shares. Steven Boyd is the managing member of Armistice Capital.
• The shares were acquired and are held in the ordinary course of business, without the purpose or effect of changing or influencing control of Kineta, Inc.

Sentiment

Score: 7

Explanation: The disclosure of a significant passive stake by an institutional investor like Armistice Capital can be viewed positively as it signals confidence in the company's long-term prospects. However, the internal inconsistency regarding the percentage of ownership (3.64% vs. 12.84%) introduces a notable negative element of confusion and potential misrepresentation within the filing itself.

Positives

• A significant institutional investor, Armistice Capital, LLC, and its managing member, Steven Boyd, have disclosed a substantial beneficial ownership stake of 12.84% in Kineta, Inc., signaling confidence in the company.
• The investment is stated to be in the ordinary course of business, indicating a passive investment strategy rather than an activist one aimed at control.

Negatives

• The filing contains a significant discrepancy regarding the percentage of class owned, stating 3.64% on the cover page and 12.84% in the detailed ownership section (Item 4), which could lead to investor confusion.
• The explanation for the 12.84% figure in Item 4 contains a confusing and factually incorrect statement, indicating the percentage is based on "1,823,138 Shares outstanding," which is the number of shares owned by the reporting persons, not the total outstanding shares of the issuer.

Risks

• No specific risks related to Kineta, Inc.'s operations or financial health are mentioned in this Schedule 13G filing, as it focuses solely on beneficial ownership disclosure.

Future Outlook

Not applicable. This filing is a disclosure of current ownership, not a forward-looking statement from the issuer or the reporting persons regarding the issuer's future.

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

This filing indicates a significant passive investment by an institutional fund in Kineta, Inc., a biotechnology company. Such investments are common in the biotech sector, where funds often take positions in companies with promising drug pipelines or technologies, anticipating future growth without seeking active control.

Comparison to Industry Standards

• NA. This filing is a disclosure of an ownership stake, not a performance report that can be compared to industry benchmarks or specific companies/projects.

Related Party Transactions

• Armistice Capital Master Fund Ltd., a Cayman Islands exempted company and an investment advisory client of Armistice Capital, has the right to receive dividends from, or the proceeds from the sale of, the reported securities.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake could be seen as a vote of confidence, potentially influencing investor sentiment. However, the discrepancy in reported ownership percentage could cause confusion and uncertainty.
• Management: Awareness of a large passive institutional holder may influence management's strategic decisions, though the filing explicitly states no intent to influence control.

Next Steps

• No specific future actions, events, or milestones are mentioned in this beneficial ownership disclosure.

Key Dates

Recommendation

The filing indicates a significant institutional stake, which is generally a positive signal. However, the internal inconsistency regarding the percentage of ownership (3.64% vs. 12.84%) creates uncertainty and requires clarification. Until this discrepancy is resolved, a "hold" recommendation is prudent, as the true extent of the institutional commitment and its potential impact on market perception is unclear. The stated passive nature of the investment suggests no immediate catalyst for significant price movement based on activist pressure.

Keywords

Kineta Inc, KNET, Armistice Capital, Steven Boyd, Schedule 13G, beneficial ownership, institutional investor, common stock, equity stake, passive investment