Kardigan (KARD) 10% Owner HRTG GPE Converts Preferred into Common

What Happened HRTG GPE, LLC (a reported 10% owner of Kardigan, ticker KARD) converted multiple derivative/convertible preferred securities into common stock on June 17, 2026. The filing lists four conversion entries totaling 13,792,034 common shares acquired and four derivative/dispensed entries totaling 8,658,987 shares removed, resulting in a net increase of 5,133,047 common shares beneficially owned. No cash price per share was reported (N/A) because the conversions were effected under the securities’ conversion terms.

Key Details

• Transaction date: 2026-06-17; Form 4 filed: 2026-06-22 (filed late relative to the two-business-day rule).
• Reported entries: +13,792,034 common shares acquired via conversion; −8,658,987 derivative/preferred interests disposed; net +5,133,047 common shares.
• Price/consideration: N/A — conversions occurred without additional consideration.
• Shares owned after transaction: not specified in the Form 4 (filing does not report total post-transaction beneficial ownership).
• Footnotes: F1 — Series A, B and B-1 preferred converted automatically into common on a 1.5928-to-1 basis when the issuer’s Form S-1 was declared effective. F2 — HRTG GPE is the general partner of HRTG PV, L.P. and HRTG CIF 2024, L.P.; Keith Johnson and Kevin Kelly are managing members.
• Transaction type: conversion of convertible preferred stock (derivative conversion), not an open-market buy or sale.

Context This was an automatic conversion of convertible preferred securities into common stock tied to the effectiveness of Kardigan’s registration statement (per footnote). Because HRTG is a 10% institutional owner (general partner entity), this reflects capital structure conversion rather than a manager/executive choosing to buy or sell stock. No sale proceeds or market trades were reported, and no per-share value was disclosed in the filing. The Form 4 was filed several days after the transaction date.