Company: INV
Filing Date: 2025-04-15
Form Type: S-1
Source: 0001628280-25-017890
Chunk: 48

Company: Innventure, Inc.
Filing Date: 2025-04-15
Form: S-1
Chunk 48
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 development; (4) the company’s public representations; and (5) the activities of the

company’s officers and directors.

In the context of its Section 3(a)(1)(A) analysis, and specifically Section 3(a)(1)(A)’s asset test, Innventure has

determined that neither Innventure’s equity interest in AeroFlexx nor the loans from Innventure to AeroFlexx are a

“security.” This determination is based upon Innventure’s conclusion that neither should be viewed as an

“investment contract.” Applicable case law has found that an “investment contract” exists when there is the

investment of money in a common enterprise with a reasonable expectation of profits to be derived primarily from

the efforts of others.

The above determinations were made by Innventure based in large part on case law precedent and no-action

letters issued by the SEC staff and other SEC interpretive guidance, and the significant relationship that exists

between Innventure and AeroFlexx (e.g., Innventure founded AeroFlexx and the only AeroFlexx director that is not

also an Innventure director is the Chief Executive Officer of AeroFlexx who is, himself, an employee of Innventure).

Additionally, based in large part on case law precedent and SEC staff no-action letters, Innventure determined that

the loans from Innventure to AeroFlexx should not constitute securities that are “evidences of indebtedness” under

the Investment Company Act.

Innventure has not requested the SEC to approve this analysis and the SEC has not done so. If the SEC were to

disagree with Innventure’s analysis or relevant factual circumstances were to change, Innventure may be required to

adjust its analysis and, potentially, its asset composition, in order to support its conclusion that it should not be

deemed to be an investment company under the Investment Company Act. If Innventure were required to register as

an investment company under the Investment Company Act, compliance with the additional associated regulatory

burdens would require additional expense and attention from management for which Innventure has not accounted

and, furthermore, could require Innventure to restructure its operations, sell certain of its assets or abstain from the

purchase of certain assets, which could have a material adverse effect on Innventure’s business, financial condition,

results of operations and prospects.

Additional financing transactions by the Operating Companies could impact your rights as a stockholder of

Innventure.

Innventure and the Operating Companies expect to require