Deerfield funds convert Parabilis (PBLS) preferred stock into voting common
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Parabilis Medicines, Inc. reported that investment funds managed by Deerfield converted multiple series of preferred stock into voting common stock in connection with the company’s initial public offering. The Form 4 shows Deerfield Healthcare Innovations Fund, L.P. and Deerfield Private Design Fund III, L.P. acquiring an aggregate of 2,042,004 shares of voting common stock through automatic conversions coded as “C” transactions, all at a stated price of $0.00 per share. After these conversions, the preferred stock positions reported for Series A, B, C and D show zero remaining shares, indicating full conversion into common. The filing states that the Deerfield-affiliated reporting persons disclaim beneficial ownership beyond any indirect pecuniary interest.
Positive
- None.
Negative
- None.
Insights
Deerfield funds converted all reported Parabilis preferred into common around the IPO, a non-cash, structural change.
The transactions show Deerfield-managed funds converting Series A, B, C and D preferred stock into voting common stock upon the closing of Parabilis’ initial public offering, following a 1-for-1.5389 reverse split. All are coded as derivative conversions at a stated price of $0.00 per share, totaling 2,042,004 shares of common stock.
These are non-market, automatic conversions rather than open-market buying or selling. The derivativeSummary is empty after the event, indicating no remaining preferred positions from the reported series. For investors, this mainly clarifies the capital structure post-IPO rather than signaling a change in Deerfield’s economic exposure.
Insider Trade Summary
2,042,004 shares exercised/converted
Mixed
16 txns
Insider
Flynn James E, Deerfield Mgmt HIF, L.P., DEERFIELD MANAGEMENT COMPANY, L.P., Deerfield Healthcare Innovations Fund, L.P., Deerfield Mgmt III, L.P., Deerfield Private Design Fund III, L.P.
Role
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| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Conversion | Series A Preferred Stock | 166,070 | $0.00 | -- |
| Conversion | Series A Preferred Stock | 166,070 | $0.00 | -- |
| Conversion | Series B Preferred Stock | 143,650 | $0.00 | -- |
| Conversion | Series B Preferred Stock | 143,650 | $0.00 | -- |
| Conversion | Series C Preferred Stock | 246,732 | $0.00 | -- |
| Conversion | Series C Preferred Stock | 246,732 | $0.00 | -- |
| Conversion | Series D Preferred Stock | 464,550 | $0.00 | -- |
| Conversion | Series D Preferred Stock | 464,550 | $0.00 | -- |
| Conversion | Voting Common Stock | 122,990 | $0.00 | -- |
| Conversion | Voting Common Stock | 122,990 | $0.00 | -- |
| Conversion | Voting Common Stock | 149,238 | $0.00 | -- |
| Conversion | Voting Common Stock | 149,238 | $0.00 | -- |
| Conversion | Voting Common Stock | 260,992 | $0.00 | -- |
| Conversion | Voting Common Stock | 260,992 | $0.00 | -- |
| Conversion | Voting Common Stock | 407,132 | $0.00 | -- |
| Conversion | Voting Common Stock | 407,132 | $0.00 | -- |
Holdings After Transaction:
Series A Preferred Stock — 0 shares (Indirect, Through Deerfield Private Design Fund III, L.P.);
Series B Preferred Stock — 0 shares (Indirect, Through Deerfield Private Design Fund III, L.P.);
Series C Preferred Stock — 0 shares (Indirect, Through Deerfield Private Design Fund III, L.P.);
Series D Preferred Stock — 0 shares (Indirect, Through Deerfield Private Design Fund III, L.P.);
Voting Common Stock — 122,990 shares (Indirect, Through Deerfield Private Design Fund III, L.P.)
Footnotes (1)
- Each share of Series A Preferred Stock automatically converted into approximately 0.7406 shares of the Issuer's voting common stock upon the closing of the Issuer's initial public offering (on an adjusted basis after giving effect to the 1-for-1.5389 reverse split of the Issuer's common stock effected by the Issuer on June 3, 2026). Each share of Series B Preferred Stock automatically converted into approximately 1.0389 shares of the Issuer's voting common stock upon the closing of the Issuer's initial public offering (on an adjusted basis after giving effect to the 1-for-1.5389 reverse split of the Issuer's common stock effected by the Issuer on June 3, 2026). Each share of Series C Preferred Stock automatically converted into approximately 1.0578 shares of the Issuer's voting common stock upon the closing of the Issuer's initial public offering (on an adjusted basis after giving effect to the 1-for-1.5389 reverse split of the Issuer's common stock effected by the Issuer on June 3, 2026). Each share of Series D Preferred Stock automatically converted into approximately 0.8764 shares of the Issuer's voting common stock upon the closing of the Issuer's initial public offering (on an adjusted basis after giving effect to the 1-for-1.5389 reverse split of the Issuer's common stock effected by the Issuer on June 3, 2026). This Form 4 is being filed by the undersigned as well as the entities listed on the Joint Filer Information Statement attached as an exhibit hereto (the "Reporting Persons"). Deerfield Mgmt III, L.P. is the general partner of Deerfield Private Design Fund III, L.P. ("Fund III"). Deerfield Mgmt HIF, L.P. is the general partner of Deerfield Healthcare Innovations Fund, L.P. ("Deerfield Innovations" and together with Fund III, the "Funds"). Deerfield Management Company, L.P. is the investment manager of the Funds. In accordance with Instruction 4(b)(iv) to Form 4, the entire amount of the Issuer's securities held by each Fund is reported herein. For purposes of Section 16 of the Securities Exchange Act of 1934, as amended, each Reporting Person disclaims beneficial ownership of any such securities, except to the extent of his/its indirect pecuniary interest therein, if any, and this report shall not be deemed an admission that such Reporting Person is the beneficial owner of such securities for purposes of Section 16 or otherwise.
Key Figures
Common shares from conversions: 2,042,004 shares
Deerfield Innovations common total: 940,352 shares
Fund III common total: 533,220 shares
+5 more
8 metrics
Common shares from conversions
2,042,004 shares
Total voting common stock acquired via derivative conversions
Deerfield Innovations common total
940,352 shares
Voting common stock held through Deerfield Healthcare Innovations Fund, L.P. after certain conversions
Fund III common total
533,220 shares
Voting common stock held through Deerfield Private Design Fund III, L.P. after certain conversions
Series A conversion ratio
0.7406 shares
Voting common shares per Series A Preferred share after reverse split
Series B conversion ratio
1.0389 shares
Voting common shares per Series B Preferred share after reverse split
Series C conversion ratio
1.0578 shares
Voting common shares per Series C Preferred share after reverse split
Series D conversion ratio
0.8764 shares
Voting common shares per Series D Preferred share after reverse split
Reverse split ratio
1-for-1.5389
Reverse split of common stock effective June 3, 2026
Key Terms
Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, +2 more
6 terms
Series A Preferred Stock financial
"Each share of Series A Preferred Stock automatically converted into approximately 0.7406 shares of the Issuer's voting common stock"
Series A preferred stock is a type of ownership share in a company that gives investors certain advantages, such as priority in receiving profits or getting their money back if the company is sold or goes bankrupt. It is often issued during early funding stages to attract investors by offering more security than common shares. This stock matters to investors because it provides a safer way to invest while still holding potential for future gains.
Series B Preferred Stock financial
"Each share of Series B Preferred Stock automatically converted into approximately 1.0389 shares of the Issuer's voting common stock"
Series B preferred stock is a type of ownership share issued by a company that offers certain advantages over common stock, such as priority in receiving dividends or assets if the company is sold or liquidated. It is typically issued after an initial round of funding, making it a way for investors to support a company's growth while gaining some protections and benefits. This stock matters to investors because it often provides a more secure investment position with potential for future growth.
Series C Preferred Stock financial
"Each share of Series C Preferred Stock automatically converted into approximately 1.0578 shares of the Issuer's voting common stock"
A Series C preferred stock is a specific class of ownership issued during a later funding round that gives holders priority over common shareholders for getting paid and receiving dividends, like having a reserved lane in traffic when money is distributed. It often includes agreed rights such as a fixed payout, protection against dilution, and the option to convert into common shares, so investors treat it as a mix of safety and upside potential.
Series D Preferred Stock financial
"Each share of Series D Preferred Stock automatically converted into approximately 0.8764 shares of the Issuer's voting common stock"
Series D preferred stock is a specific class of preferred shares typically issued in a later-stage financing round that gives holders special rights such as priority for payout before common shareholders, fixed or cumulative dividends, and often the option to convert into common shares. Investors care because these shares affect who gets paid first in a sale or liquidation, influence ownership and voting power, and change how future fundraising or an exit will impact an investor’s return—like a VIP ticket that can sometimes be exchanged for a regular ticket if that proves more valuable.
reverse split financial
"after giving effect to the 1-for-1.5389 reverse split of the Issuer's common stock effected by the Issuer on June 3, 2026"
A reverse split is when a company reduces the number of its outstanding shares by combining several existing shares into one new share, so the price per share rises proportionally while the company’s overall value stays the same. Investors care because it can make a stock appear more respectable or meet exchange rules — like turning many small coins into a single larger bill — but it can also signal financial trouble and often affects trading liquidity and investor perception.
indirect pecuniary interest financial
"each Reporting Person disclaims beneficial ownership of any such securities, except to the extent of his/its indirect pecuniary interest therein"
FAQ
Which Parabilis preferred stock series were converted in this PBLS Form 4?
The Form 4 reports conversions of Series A, Series B, Series C and Series D Preferred Stock into voting common stock. After the transactions, each reported preferred series shows zero shares remaining, indicating full conversion of those reported holdings into common equity.
Were the Parabilis (PBLS) Deerfield conversions open-market buys or sells?
No, these were not open-market trades. All reported transactions carry code “C” for derivative conversions at a stated price of $0.00 per share, reflecting automatic preferred-to-common conversions tied to the IPO closing, not discretionary buying or selling in the market.
How do the preferred-to-common conversion ratios work for Parabilis (PBLS)?
Footnotes state that each preferred share automatically converted into approximately 0.7406 (Series A), 1.0389 (Series B), 1.0578 (Series C), and 0.8764 (Series D) voting common shares. These ratios are on an adjusted basis after a 1-for-1.5389 reverse split completed on June 3, 2026.