Scott Stanford - 28 Sep 2021 Form 4 Insider Report for Cue Health Inc.

Reporting relationship: Director, 10%+ Owner
Issuer ticker: HLTH on Nasdaq
Reported as of: 28 Sep 2021
Net transaction value: +$4,752,550
SEC form: 4
Accepted by SEC: 30 Sep 2021, 17:39:35 UTC
Prior SEC filing: 23 Sep 2021
Next SEC filing: 12 Nov 2021
Source filing: View source filing
Reporting owner signature: /s/ Erica Palsis, Attorney-in-Fact for Scott Stanford

Key filing fact

Scott Stanford filed Form 4 for Cue Health Inc. on 30 Sep 2021.

Key facts

This page summarizes Scott Stanford's Form 4 filing for Cue Health Inc..
8 reported transactions and 5 derivative rows are listed below.
Accepted by SEC: 30 Sep 2021, 17:39.

Change

Previous filing in this sequence was filed on 23 Sep 2021.
Current net transaction value: +$4,752,550.

Research use

This tells you what this filing adds before you inspect full transaction and derivative tables.
You can trace every row back to the original SEC filing document.

Evidence

Filed on Form 4

Ownership activity is grounded in SEC Form 4 disclosures.

View source filing

Reported non-derivative transactions

Shares, units, or other non-derivative securities reported in this filing.

HLTH transaction

Common Stock

Conversion of derivative security

Transaction value
Shares: +9,619,451
Change %: +7437%
Price
Shares after: 9,748,805
Date: 28 Sep 2021
Ownership: See Footnotes
Footnotes: F1, F2, F3, F4

HLTH transaction

Common Stock

Conversion of derivative security

Transaction value
Shares: +4,926,417
Change %: +2539%
Price
Shares after: 5,120,448
Date: 28 Sep 2021
Ownership: See Footnotes
Footnotes: F2, F3, F5

HLTH transaction

Common Stock

Award

Transaction value: $4,752,550
Shares: +371,293
Change %: +7.3%
Price: $12.80^*
Shares after: 5,491,741
Date: 28 Sep 2021
Ownership: See Footnotes
Footnotes: F5, F6

Reported derivative securities

Options, warrants, convertible securities, or similar derivative positions disclosed in the filing.

HLTH transaction Derivative

Series A Preferred Stock

Conversion of derivative security

Transaction value: $0
Shares: -5,450,898
Change %: -100%
Price: $0.000000^*
Shares after: 0
Date: 28 Sep 2021
Ownership: See Footnotes
Underlying class: Common Stock
Underlying amount: 5,450,898
Exercise price
Footnotes: F1, F4

HLTH transaction Derivative

Series B Preferred Stock

Conversion of derivative security

Transaction value: $0
Shares: -3,076,224
Change %: -100%
Price: $0.000000^*
Shares after: 0
Date: 28 Sep 2021
Ownership: See Footnotes
Underlying class: Common Stock
Underlying amount: 3,076,224
Exercise price
Footnotes: F2, F4

HLTH transaction Derivative

Series C-1 Preferred Stock

Conversion of derivative security

Transaction value: $0
Shares: -1,092,329
Change %: -100%
Price: $0.000000^*
Shares after: 0
Date: 28 Sep 2021
Ownership: See Footnotes
Underlying class: Common Stock
Underlying amount: 1,092,329
Exercise price
Footnotes: F3, F4

HLTH transaction Derivative

Series B Preferred Stock

Conversion of derivative security

Transaction value: $0
Shares: -3,834,088
Change %: -100%
Price: $0.000000^*
Shares after: 0
Date: 28 Sep 2021
Ownership: See Footnotes
Underlying class: Common Stock
Underlying amount: 3,834,088
Exercise price
Footnotes: F2, F5

HLTH transaction Derivative

Series C-1 Preferred Stock

Conversion of derivative security

Transaction value: $0
Shares: -1,092,329
Change %: -100%
Price: $0.000000^*
Shares after: 0
Date: 28 Sep 2021
Ownership: See Footnotes
Underlying class: Common Stock
Underlying amount: 1,092,329
Exercise price
Footnotes: F3, F5

^* marks a reported price that did not pass the local price check.

Additional SEC filing notes

Filing notes and footnotes

Explanation of responses 6 footnotes

Footnote F1

On September 28, 2021, the Series A Preferred Stock automatically converted into Common Stock on a one-to-one basis without payment of further consideration upon the closing of the initial public offering of the Issuer's common stock. The shares had no expiration date.

Footnote F2

On September 28, 2021, the Series B Preferred Stock automatically converted into Common Stock on a one-to-one basis without payment of further consideration upon the closing of the initial public offering of the Issuer's common stock. The shares had no expiration date.

Footnote F3

On September 28, 2021, the Series C-1 Preferred Stock automatically converted into Common Stock on a one-to-one basis without payment of further consideration upon the closing of the initial public offering of the Issuer's common stock. The shares had no expiration date.

Footnote F4

The shares are held directly by Sherpa Ventures Fund, LP ("ACME I"). Sherpa Ventures Fund GP, LLC ("ACME GP I") is the general partner of ACME I. Scott Stanford is the sole managing member of ACME GP I and may be deemed to have voting and investment power with respect to the shares held by ACME I and as a result may be deemed to have beneficial ownership of such shares. The reporting person disclaims beneficial ownership of the shares reported herein except to the extent of his pecuniary interest therein.

Footnote F5

The shares are held directly by Sherpa Ventures Fund II, LP ("ACME II"). Sherpa Ventures Fund II GP, LLC ("ACME GP II") is the general partner of ACME II. Scott Stanford is the sole managing member of ACME GP II and may be deemed to have voting and investment power with respect to the shares held by ACME II and as a result may be deemed to have beneficial ownership of such shares. The reporting person disclaims beneficial ownership of the shares reported herein except to the extent of his pecuniary interest therein.

Footnote F6

On September 28, 2021, outstanding principal and accrued interest underlying a convertible note automatically converted into Common Stock upon the closing of the initial public offering of the Issuer's common stock at a conversion price equal to 80% of the initial public offering price per share.