Know Labs (KNW): Erickson Exit Filing — Stake 0.7% (2.57M)
Know Labs filed Amendment No. 1 to its Schedule 13G showing that Ronald P. Erickson beneficially owns 2,569,569 shares of common stock, equal to 0.7% of the class based on 384,234,130 shares outstanding.
Rhea-AI Filing Summary
Know Labs filed Amendment No. 1 to its Schedule 13G showing that Ronald P. Erickson beneficially owns 2,569,569 shares of common stock, equal to 0.7% of the class based on 384,234,130 shares outstanding. His holdings include 2,472,202 common shares and 97,367 warrants. The amendment is an "exit filing" after the Issuer's private placement closed, meaning Erickson no longer owns more than 5%.
The filing discloses J3E2A2Z LP redeemed 16,916 Series H preferred shares for a cash payment of $654,276.15 and the issuance of 2,000,000 common shares at a conversion price of $0.335 per share. Mr. Erickson was awarded 335,000 common shares, 50% vested on grant and the remainder vesting in eight quarterly installments (first two installments vest six months after closing), with full vesting upon sale of the sensor IP or involuntary termination.
Positive
- None.
Negative
- None.
Insights
TL;DR: Erickson's stake fell below 5% after a private placement; reported holdings now 0.7% (2.57M shares), reflecting redemptions and share issuances.
The Schedule 13G/A documents a post-placement ownership profile: 2,569,569 shares beneficially owned composed of 2,472,202 common shares and 97,367 warrants. Material corporate actions include the Series H redemption that produced 2,000,000 new common shares and a cash payment of $654,276.15 to J3E2A2Z LP. From a market-impact perspective, the filing signals dilution events that reduced a previously larger reported stake to below reporting thresholds; however, no operational or earnings data are disclosed.
TL;DR: Management received restricted stock with partial immediate vesting; exit filing follows dilution below the 5% reporting threshold.
The filing details a grant of 335,000 shares to Mr. Erickson with 50% vested at grant and the balance subject to an eight-quarter vesting schedule, plus acceleration on sale of sensor IP or involuntary termination. Those terms align compensation with continued service and specific corporate outcomes. Separately, the Series H redemption and private placement materially changed ownership percentages, prompting this final amendment. The disclosure is clear on holdings and vesting mechanics but contains no forward-looking operational detail.
AI-generated analysis. How Rhea-AI works. Not financial advice.