Special Situations Digest #24

ADW Capital Management holds about 19.3% of Compass Diversified's stock. ADW sent an open letter urging the board to begin an immediate strategic review and consider orderly liquidation. ADW estimates potential value creation of $50 to $60 per share by internalizing the external manager. The letter highlights concerns over board independence and conflicts of interest, and threatens a proxy contest if the board does not engage.

Exicure HiTron Inc. consolidated its stake in Exicure, Inc. (XCUR) to 34.87% by reacquiring 623,277 shares. The reporting person recovered these shares from five prior transferees through share transfer amendment agreements dated June 23 and June 26, 2026. Following these transfers, the reporting person beneficially owns 2,222,224 shares. The reporting person is pursuing remedies under pledge arrangements to recover an additional 487,834 shares from two non-participating transferees, which could further increase the control block.

Redmile Group, LLC, Jeremy C. Green and Redmile Biopharma Investments II, L.P. reported beneficial ownership of 10,019,421 Shattuck Labs, Inc. (STTK) common shares, including warrant shares, or 9.9% as of July 17, 2026, compared with 9,819,084 shares and the same 9.9% in Amendment No. 5. Since the prior filing, Redmile reported selling an aggregate 1,948,851 common shares from July 10 through July 17 and purchasing 143,808 shares on July 17 for approximately $1 million at a weighted-average price of $7.46. The current beneficial-ownership total includes 4,786,345 shares issuable under pre-funded warrants subject to a 9.99% ownership limitation. The filing is Amendment No. 6 to Schedule 13D.

DEFJ, LLC, a subsidiary of CK Life Sciences, is increasing its stake in TransCode Therapeutics, Inc. (RNAZ) to approximately 9.99% via a preferred stock conversion. According to a Schedule 13D/A filed July 17, 2026, DEFJ provided an irrevocable notice to convert 21.6755 shares of Series B Preferred into 216,755 shares of Common Stock. This conversion is contingent upon stockholder approval of Proposals 1 and 2 at the 2026 annual meeting. DEFJ currently holds 83,285 shares, or 8.8% of the 950,302 shares outstanding as of May 12, 2026. The conversion links the stake increase to the upcoming proxy vote and brings DEFJ just below the 10% threshold that often triggers additional disclosure or governance scrutiny.

Poplar Point Capital Management LLC, Poplar Point Capital Partners LP, Poplar Point Capital GP LLC and Jad Fakhry reported shared beneficial ownership of 1,563,752 shares, or 15.22%, of TransAct Technologies Inc. (TACT) in a Schedule 13D filed July 17, 2026. The group believes the shares are undervalued and has discussed, and intends to continue discussing, strategic alternatives for the casino and gaming ticket-printer business, financial-reporting segmentation, capital allocation, governance and board composition with management and the board.

Air T, Inc. (AIRT) is the subject of an ownership filing. Nicholas J. Swenson and affiliated entities disclosed a 48.3% stake in Air T, Inc. (AIRT) with an expressed intent to influence company policies and assert shareholder rights. The group holds 1,303,339 shares, having deployed approximately $11,600,977 of capital to build the position. According to Amendment No. 28 to the Schedule 13D filed July 15, 2026, the group reports no purchases or sales in the past sixty days.

Dalton Investments increased its stake in Macnica Holdings, Inc. (3132.T) to 9.18% from 8.18%, according to Change Report No. 4 filed on July 15, 2026; the reporting-obligation date was July 8, 2026. Dalton reported holding 16,444,605 shares. The filing states that Dalton views the shares as undervalued, intends to hold them long term, and may seek constructive dialogue with the company, its officers and directors, and other shareholders regarding governance, board composition, management, business, financial condition, and strategy.

Dalton Investments increased its stake in Tosei Corporation (8923.T) to 6.07% from 5.00%, according to a change report filed on July 13, 2026; the reporting-obligation date was July 6, 2026. Dalton states that it views Tosei's shares as undervalued, intends to hold them long term, and may seek constructive dialogue on governance, board composition, management, business, financial condition, and strategy.

Nippon Active Value Fund took a 5.0% stake in Intage Holdings (4326.T). The fund disclosed the position through an initial 5%+ filing. This is a local large-shareholding filing.

City Index Eleventh and its joint holders increased their aggregate stake in Sankei Real Estate Investment Corporation (2972.T) from 28.51% to 29.56%, representing 138,094 units. The filing submitted July 14, 2026, was Change Report No. 12, with a July 7 reporting-obligation date; it was not an initial 5% filing.