SCHEDULE: Sharps Technology: FalconX Holdings Boosts Stake to 16.5%

FalconX Holdings Limited and its affiliates have increased their beneficial ownership in Sharps Technology, Inc. to 16.5%, signaling active engagement in strategic direction.

Summary

• Solios, Inc. (an affiliate of FalconX Holdings) exercised Cash Pre-Funded Warrants on January 9, 2026, acquiring 461,538 shares of Sharps Technology, Inc. Common Stock.
• Following this, Solios, Inc. beneficially owns an aggregate of 5,794,268 shares, representing approximately 14.9% of the Issuer's outstanding Common Stock.
• MNNC Capital Digital Asset Opportunities Master Fund LP sold 269,321 shares at $1.9253 on January 9, 2026, and an additional 192,307 shares at $1.9653 on January 12, 2026.
• MNNC Capital Digital Opportunities BTC Master Fund LP sold 260,411 shares at $1.9253 on January 9, 2026, and an additional 47,281 shares at $1.9653 on January 12, 2026.
• After these sales, the MNNC Funds hold no direct Common Stock but retain Cash Stapled Warrants.
• FalconX Holdings Limited, through its affiliates, now beneficially owns an aggregate of 6,563,498 shares, representing approximately 16.5% of Sharps Technology's outstanding Common Stock.
• The reporting persons acquired these securities for investment purposes, seeking exposure to the Issuer's business and growth prospects.
• They intend to engage in discussions with Sharps Technology's management and board regarding business, financial condition, operations, corporate governance, and strategic direction, including potential changes to the board and management composition, business strategy, and corporate structure.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development. The increased stake by FalconX Holdings and their stated intent to engage in strategic discussions could be a catalyst for positive change, although the partial sales by MNNC Funds introduce a minor mixed signal.

Positives

• Increased beneficial ownership by FalconX Holdings Limited and its affiliates to 16.5% indicates strong investor confidence and a long-term investment horizon.
• The reporting persons' stated intent to engage with management and the board on strategic direction, corporate governance, and potential changes could lead to improved operational efficiency and shareholder value.

Negatives

• MNNC Capital Digital Asset Opportunities Master Fund LP and MNNC Capital Digital Opportunities BTC Master Fund LP disposed of a significant number of Common Stock shares in open-market transactions in January 2026, potentially indicating a partial reduction in direct equity exposure by these specific funds, although they retain warrant positions.

Risks

• The reporting persons may acquire additional securities, exercise warrants, or dispose of some or all of their securities, which could impact the stock price.
• Discussions regarding potential changes to the composition of the Issuer's board of directors and management, as well as business strategy and corporate structure, could lead to uncertainty or internal friction.

Future Outlook

The reporting persons intend to continue engaging in discussions with Sharps Technology's management and board regarding the company's business, financial condition, operations, corporate governance, and strategic direction. These discussions may include potential changes to the board and management composition, business strategy, and corporate structure. They reserve the right to adjust their investment position, including acquiring or disposing of securities.

Management Comments

• "The securities were acquired for investment purposes. The Reporting Persons entered into the transaction to obtain an equity position in the Issuer and exposure to the Issuer's business and growth prospects, including through the potential exercise of the warrants described above."
• "As of the date of this filing, the Reporting Persons have engaged and intend to continue to engage in discussions with management and members of the board of directors of the Issuer regarding the Issuer's business, financial condition, operations, corporate governance, and strategic direction."
• "Such discussions have related to, and may continue to relate to, among other things, potential changes to the composition of the Issuer's board of directors and management, as well as potential changes to the Issuer's business strategy and corporate structure."

Industry Context

StockSavvy.ai notes that an increased activist stake by a significant investor group like FalconX Holdings often signals a belief in undervalued assets or underperforming management within the industry. Their stated intent to engage on corporate governance and strategic direction suggests a potential push for operational improvements or a strategic pivot, which is a common pattern observed in sectors undergoing consolidation or technological shifts.

Comparison to Industry Standards

• The beneficial ownership stake of 16.5% by FalconX Holdings is a substantial minority stake, often sufficient to exert significant influence over corporate governance and strategic decisions, comparable to activist investor positions seen in companies like Starboard Value's stake in various mid-cap companies or Elliott Management's engagements.
• The stated intent to discuss board and management changes aligns with common activist investor playbooks, where such engagement often precedes proxy contests or negotiated board seats, as seen in cases like Nelson Peltz's involvement with Procter & Gamble or Carl Icahn's activities.
• The sale of shares by MNNC Funds at specific price points ($1.9253 and $1.9653) provides a market-based valuation reference for recent transactions, which can be compared to peer company valuations or historical trading ranges for Sharps Technology, Inc.

Stakeholder Impact

• Shareholders: Potential for increased shareholder value if the reporting persons' engagement leads to positive strategic or governance changes. Conversely, uncertainty could arise from potential board or management changes.
• Management/Board: Direct engagement and potential pressure for changes in strategy or composition.

Next Steps

• Reporting Persons intend to continue discussions with Sharps Technology's management and board of directors regarding business, financial condition, operations, corporate governance, and strategic direction.
• Reporting Persons may acquire additional securities, exercise warrants, dispose of some or all of their securities, or otherwise modify their investment position.

Key Dates

Recommendation

The increased significant stake by FalconX Holdings and their stated intent to actively engage with Sharps Technology's management and board on strategic direction and corporate governance suggests potential for future positive catalysts. However, the partial sales by the MNNC Funds introduce a mixed signal, and the outcome of the proposed discussions is uncertain. A "hold" recommendation is appropriate to observe how these engagements unfold and their impact on the company's performance and strategic direction before making a more definitive investment decision.

Keywords

Sharps Technology, Schedule 13D/A, Beneficial Ownership, FalconX Holdings, Solios Inc, Warrants, Equity Stake, Corporate Governance, Investment Strategy, SEC Filing, SRTS