Paul Paradis Files SC 13D on Sezzle, Signals Group Formation

TL;DR

**Paul Paradis just filed a 13D on Sezzle, indicating he's part of a group and might push for changes.**

AI Summary

Paul Paradis, a significant shareholder, has filed an initial SC 13D for Sezzle Inc. (SZZL) as of January 8, 2024, indicating he is part of a group. This filing signals that Paradis, who acquired his shares on June 14, 2023, now holds a substantial stake in Sezzle and may seek to influence the company's management or policies. This matters to investors because a major shareholder forming a group could lead to strategic changes, potentially impacting the stock's future performance.

Why It Matters

This filing indicates a major shareholder, Paul Paradis, is taking a more active role in Sezzle Inc. and may be looking to influence company decisions, which could lead to significant strategic shifts.

Risk Assessment

Risk Level: medium — The formation of a group by a significant shareholder can lead to either positive strategic changes or disruptive activist campaigns, creating uncertainty for investors.

Analyst Insight

A smart investor would monitor Sezzle Inc. news closely for any announcements regarding Paul Paradis's intentions or potential group actions, as this could signal upcoming strategic changes or activist campaigns that may impact the stock price.

Key Players & Entities

• Paul Paradis (person) — reporting person and significant shareholder of Sezzle Inc.
• Sezzle Inc. (company) — the issuer of the common stock
• June 14, 2023 (date) — date of event requiring the filing
• January 8, 2024 (date) — filing date of the SC 13D
• 78435P105 (other) — CUSIP number for Sezzle Inc. Common Stock

Forward-Looking Statements

• Paul Paradis, potentially with a group, will seek to engage with Sezzle Inc. management regarding strategic direction. (Sezzle Inc.) — medium confidence, target: Q2 2024
• The formation of this group could lead to increased volatility in Sezzle Inc.'s stock price as investors react to potential activist involvement. (Sezzle Inc. stock) — medium confidence, target: Q1 2024

FAQ

Key Financial Figures

• $0.00001 — me of Issuer) Common Stock, par value $0.00001 per share (Title of Class of Securiti

Filing Documents

• szl-13dxparadisx2024x01x08.htm (SC 13D) — 77KB
• 0001662991-24-000016.txt ( ) — 79KB

Security and Issuer

Item 1. Security and Issuer. The name of the issuer is Sezzle Inc., a Delaware corporation (the "Issuer"). The address of the Issuer's principal executive offices is 700 Nicollet Mall, Suite 640, Minneapolis, Minnesota 55402. This Schedule 13D relates to the Issuer's Common Stock, $0.00001 par value per share (the "Common Stock"). This Schedule 13D is being filed to disclose prior acquisitions of Common Stock by the Reporting Persons, all of which were previously reported on Form 3, 4 and 5 filings made with the SEC under Section 16 of the Securities Exchange Act of 1934, and disclosed in other filings of the Issuer made on Forms 10-Q, Forms 10-K, and proxy statements. All share and price information set forth in this Schedule 13D has been adjusted to reflect the Issuer's 1-for-38 reverse stock split effective on May 11, 2023.

Identity and Background

Item 2. Identity and Background. (a), (f) The persons filing this statement are Paul Paradis ("Mr. Paradis") and Paradis Family LLC, a South Dakota limited liability company ("PFL," and together with Mr. Paradis, the "Reporting Persons"). (b) The principal business address of each Reporting Person is 700 Nicollet Mall, Suite 640, Minneapolis, Minnesota 55402 (c) Mr. Paradis serves as an Executive Director and as the President of the Issuer, and as the Member of PFL. As the Member of PFL, Mr. Paradis has sole voting and investment power over shares of the Common Stock held by PFL. (d) None of the Reporting Persons have, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors). (e) None of the Reporting Persons have, during the last five years, been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

Source or Amount of Funds or Other Consideration

Item 3. Source or Amount of Funds or Other Consideration. All shares of Common Stock and derivative securities described in Item 5 below have been issued to Mr. Paradis in connection with his services to the Issuer as the Issuer's Executive Director and President. On July 30, 2021, Mr. Paradis made a bona-fide gift of 84,211 shares of Common Stock to PFL.

Purpose of Transaction

Item 4. Purpose of Transaction. As of the date hereof, the Reporting Persons do not have a plan or proposal that relates to or would result in any of the transactions enumerated in sub items (a) through (j) of the instructions to Item 4 of this Schedule 13D. Notwithstanding the foregoing, the Reporting Persons reserve the right to effect any such actions as any of them may deem necessary or appropriate in the future. CUSIP No. 78435P105 13D Page 5 of 6 Pages

Interest in Securities of the Issuer

Item 5. Interest in Securities of the Issuer. (a), (b) The Reporting Persons, collectively, currently beneficially own 311,798 shares of Common Stock, which represents 5.5% of the outstanding shares of Common Stock of the Issuer. Such percentage and the percentages below are calculated based on 5,695,227 shares of Common Stock outstanding as of November 13, 2023 (as reported in the Issuer's Form 10-Q filed with the SEC on November 14, 2023). The following summarizes the Reporting Persons' acquisition and disposition of shares of Common Stock, all of which have been previously reported on Form 3, 4 and 5 filings made with the SEC under Section 16 of the Securities Exchange Act of 1934, together with other filings of the Issuer made on Forms 10-Q, Forms 10-K, and proxy statements. On June 11, 2021, Mr. Paradis reported on Form 3 beneficial ownership of 263,516 shares of Common Stock, which included 13,158 shares of restricted stock that have fully vested, and 358 restricted stock units that have been exchanged for an equal number of shares of Common Stock. On June 11, 2021, the Reporting Person also reported on Form 3 the issuance of an option to purchase 13,158 shares of Common Stock, all of which have fully vested. On July 30, 2021, Mr. Paradis transferred 84,211 shares of Common Stock to PFL for estate planning purposes. On January 1, 2023, the Issuer granted to Mr. Paradis an award of 9,343 restricted stock units, which fully vested on July 1, 2023, and the Issuer granted to the Reporting Person an award of 31,579 restricted stock units, which vested 25% on January 1, 2024 and the remainder in 12 equal quarterly installments thereafter. In connection with the vesting of previously awarded restricted stock units, Mr. Paradis forfeited 109 shares of Common Stock on December 15, 2021, 2,855 shares of Common Stock on July 1, 2023, and 2,834 shares of Common Stock on January 1, 2024 to satisfy withholding tax obligations. (c) There have been no transactions in th

Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer

Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer. Except with respect to Mr. Paradis's receipt of options to purchase shares of Common Stock and restricted stock units under the Issuer's 2016, 2019 and 2021 Incentive Plans, as amended, including the Option Agreements attached as Exhibits 10.1-10.2, which are hereby incorporated by reference, there are no contracts, arrangements, understandings, or relationships (legal or otherwise) among the Reporting Persons or between the Reporting Persons and any person with respect to any securities of the Issuer, including any class of the Issuer's securities used as a reference security, in connection with any of the following call options, put options, security-based swaps or any other derivative securities, transfer or voting of any of the securities, finder's fees, joint ventures, loan or option arrangements, guarantees of profits, division of profits or loss, or the giving or withholding of proxies, naming the persons with whom such contracts, arrangements, understandings, or relationships have been entered into.

Material to Be Filed as Exhibits

Item 7. Material to Be Filed as Exhibits. Exhibit Number Description of Exhibits 10.1 Form of Option Agreement (incorporated by reference to Exhibit 10.5 of the Issuer's Registration Statement on Form 10 filed with the SEC on April 13, 2021) 10.2 Form of Sezzle Equity Incentive Plan Notice of Award for RSUs (incorporated by reference to Exhibit 10.7 of the Issuer's Registration Statement on Form 10 filed with the SEC on April 13, 2021) 10.3 Joint Filing Agreement dated January 5 , 2024 between the Reporting Persons. CUSIP No. 78435P105 13D Page 6 of 6 Pages SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. s Paul Paradis Paul Paradis January 5, 2024 PARADIS FAMILY LLC s Paul Paradis Paul Paradis Member January 5, 2024 Exhibit 10.3 JOINT FILING AGREEMENT January 5, 2024 The undersigned agree that this Schedule 13D, dated the date hereof, and all future amendments thereto relating to the Common Stock, par value $0.00001 per share, of Sezzle Inc. shall be filed on behalf of the undersigned. s Paul Paradis Paul Paradis January 5, 2024 PARADIS FAMILY LLC s Paul Paradis Paul Paradis Member January 5, 2024

View Full Filing

View this SC 13D filing on SEC EDGAR