North Run Fuels LightPath Surge with $2.58 Warrant Exercise, Sells Half Shares at $11.72 Premium【News Flash】

North Run’s New Wedge of LightPath Capital On January 5, 2026, North Run Strategic Opportunities Fund I, LP executed a sizeable warrant exercise that added 3.5 million shares of LightPath Technologies’ Class A common stock to the fund’s portfolio. The exercise price of $2.58 per share is well below the market price of $11.52, giving the fund a built‑in upside of more than 250 %. At the same time, the fund sold 770,321 shares at a premium of $11.72, indicating a partial profit‑taking run. The net result is a significant increase in North Run’s equity stake, bringing its post‑transaction holdings to nearly 3.5 million shares—roughly 0.5 % of the company’s diluted shares outstanding.

What Does This Mean for Investors? The timing of the exercise coincides with LightPath’s most recent 52‑week high of $12.10, suggesting the fund is positioning itself to ride a potential upside that may be driven by a resurgence in optical switch demand or a broader rebound in the semiconductor‑related supply chain. However, the company’s negative earnings (P/E –29.31) and a high price‑to‑book of 29.13 signal that investors are pricing in a speculative upside rather than current profitability. For long‑term holders, the fund’s move could be interpreted as a vote of confidence in LightPath’s strategic initiatives, yet the short‑term volatility remains a concern given the stock’s wide annual swing from $1.61 to $12.10.

North Run: A History of Opportunistic Engagement North Run’s transaction record with LightPath is characterized by aggressive warrant and convertible note play. In December 2025, the fund purchased a senior secured promissory note that converted into 1.86 million shares, a move that was later fully repaid without dilution. The fund’s recent pattern—buying a large block of shares via a cashless warrant exercise and immediately selling a portion—shows a classic “buy low, sell high” strategy that capitalizes on short‑term price momentum while maintaining a long‑term equity stake. Historically, North Run has also sold Class A Common Stock Purchase Warrants at no cost, effectively monetizing options that would otherwise have required capital outlay.

Industry Context and Future Outlook LightPath operates in a niche segment of the optical components market, supplying collimator assemblies and GRADIUM glass products that are critical for high‑precision instrumentation. The company’s technology pipeline is reportedly expanding into optical switches, a sector poised for growth as data centers demand higher bandwidth and lower latency. If LightPath can successfully commercialize these switches, the stock’s valuation—currently driven by speculative sentiment—could find a more solid footing. North Run’s stake provides a buffer against downside risk while offering upside participation should the company’s product strategy materialize.

Investor Takeaway North Run’s recent activity signals a belief that LightPath’s stock is undervalued relative to its long‑term prospects, yet the company’s financials and high valuation ratios warn of potential overextension. Investors should monitor LightPath’s earnings cadence, product launch dates, and any guidance from management. A prudent strategy might involve buying into the current upside while setting protective stops around the $9–10 range to guard against the stock’s historical volatility.