Latigo (LTGO) 10% Owner Sanofi Converts Securities at IPO

What Happened
Sanofi (reported as a 10% owner through subsidiaries) converted derivative securities into common stock of Latigo Biotherapeutics (LTGO) in connection with Latigo’s IPO on August 10, 2026. The filing reports conversions resulting in acquisitions of 494,800 and 177,978 shares (total 672,778 shares). The Form 4 also records corresponding dispositions of the derivative instruments (the preferred shares and the convertible note) — i.e., the derivatives were extinguished and common shares were received. The filings list price as N/A; the note converted at the IPO price per the footnotes, and the preferred converted one-for-one without payment.

Key Details

• Transaction date: August 10, 2026 (reported on Form 4 filed August 12, 2026).
• Shares acquired via conversion: 494,800 + 177,978 = 672,778 common shares. Prices and aggregate dollar amounts are shown as N/A in the Form 4.
• Reported as both acquisitions of common stock and dispositions of derivative securities (conversion events).
• Footnotes of note:
  • F1: Series B preferred converted automatically one-for-one into common at the IPO without payment.
  • F2: Convertible note principal (plus accrued interest) automatically converted into common at the IPO price.
  • F3: Sanofi’s ownership is held through various wholly-owned subsidiaries.
• Ownership after transaction: The filing states Sanofi’s beneficial ownership fell below 10% immediately upon consummation of the IPO due to issuance of additional shares (exact post-transaction share count/percentage not provided).
• Filing timeliness: Form 4 filed August 12, 2026 for an August 10 transaction; no late-filing flag noted in the information provided.

Context
This is an institutional conversion tied to an IPO (not an open-market buy or sale by a company insider). The filing reflects extinguishment of convertible instruments and receipt of common shares — a routine corporate-financing/event-driven conversion rather than a discretionary market trade. For retail investors, conversions like this increase the free float and can dilute percentage ownership (as happened here), but they do not necessarily signal managerial sentiment about the company’s prospects.