Coastlands Capital LP

Coastlands Capital LP (“Coastlands”) is a Delaware limited partnership that was formed in 2025. Coastlands’ principal owner is Matthew D. Perry, Coastlands’ Managing Partner. As of December 31, 2025, Coastlands had total discretionary regulatory assets under management of approximately $785,000,000. Coastlands manages assets only on a discretionary basis. Coastlands serves as the investment adviser to Coastlands Capital Partners LP, a Delaware limited partnership (the “Fund”). The Fund and any other private investment fund that Coastlands may form and manage in the future are referred to collectively as the “Funds.” References herein to a “client” mean the Funds and any other client that establishes a separately managed account that Coastlands manages or to which Coastlands may provide non-discretionary investment advice or other consulting services in the future. Coastlands invests principally, but not solely, in equity and equity-related securities that are traded publicly in U.S. and non-U.S. markets on behalf of its clients, but is authorized to enter into any type of investment transaction that it deems appropriate under the terms of the Fund’s governing documents or other investment management agreement. The investors in the Funds have no opportunity to select or evaluate any Fund investments or strategies. Coastlands selects all Fund investments and strategies. Coastlands does not participate in wrap fee programs. Coastlands typically does not tailor its services to the individual needs of individually managed accounts, but manages each such account according to the strategy selected by the client, subject to any investment restrictions imposed by the client. Coastlands’ discretionary authority is limited, however, as described in Item 16.

A. Fee Schedule Coastlands delivers this brochure to prospective investors and clients that are qualified purchasers as defined in Section 2(a)(51)(A) of the Investment Company Act of 1940, as amended. Therefore, information on how Coastlands is compensated for its advisory services and its fee schedule with respect to its clients and Funds are not included here. B. Payment of Fees Coastlands deducts management fees and performance fees or allocations directly from client accounts. Relationships with a Fund are terminable on expiration of the Fund’s term, dissolution of the Fund or on Coastlands’ termination as investment adviser of the Fund. Relationships with other clients are terminable on the termination of the investment adviser agreement. Each investor may withdraw capital from a Fund only on specified prior written notice and subject to significant

withdrawal limitations as specified in the applicable Fund’s governing documents. Investors should refer to the Funds’ offering documents for specific information. Except as may be otherwise negotiated in particular cases, the holder of an individually managed account may terminate the account by giving 60 days prior written notice. In all cases, expenses, the pro rata portion of the management fee and the performance fee or allocation through the date of the investor’s withdrawal or termination of the client account are charged to the investor or client. All prepaid but unearned advisory fees are refunded on termination of a client’s account. An investor who withdraws from a Fund on a date other than the last day of a month, however, does not receive a refund of the management fee previously paid. Coastlands believes that its fees are competitive with those charged by other investment advisers for comparable services. Comparable services may be available, however, from other sources for lower fees. C. Third-Party Fees Each client is responsible for its own costs and expenses related to its organization and ongoing operations, including, without limitation, trading costs and expenses (such as brokerage commissions, order execution costs, expenses related to short sales, and clearing and settlement charges), third-party research and software costs, ongoing legal, accounting and bookkeeping fees and expenses, and the fees and expenses charged by any Fund administrator for its accounting, bookkeeping and other services. Investors should refer to the Funds’ offering documents for specific information. In addition, certain of Coastlands’ own costs and expenses may be paid by securities brokerage firms that execute clients’ securities trades, as discussed in Item 12 below. Accounts that invest in mutual funds also pay, indirectly, investment advisory fees to the managers of those funds.

Coastlands’ investment strategy focuses on a fundamental and value-based approach to small- and micro-cap biotechnology companies. For purposes of this brochure, references to biotechnology companies also include biopharmaceutical companies. To achieve its objective, Coastlands principally invests in and trades equity and equity-related securities that are traded publicly in U.S. and non-U.S. markets, with a focus on structured investments such as warrants, preferred equity and other bespoke financing instruments. While the majority of investments will be in publicly traded companies, Coastlands may allocate capital to private biotechnology companies when compelling opportunities arise. Coastlands also may invest in bonds and other fixed-income securities, non-U.S. currencies, options on futures, other commodity interests and money market instruments. Coastlands may engage in hedging (through short sales and otherwise) and may use leverage through borrowing on margin and investing in swaps, options, futures and other derivatives. The investment strategies summarized above represent Coastlands’ current intentions, are general in nature and are not exhaustive. There are no limits on the types of securities in which Coastlands may take positions on behalf of its clients, the types of positions that it may take or the concentration of its investments. Coastlands may use any trading or investment techniques, whether or not contemplated by the expected investment strategies described above. In addition, there are limitations in describing any investment strategy due to its complexity, confidentiality and indefinite nature. Depending on conditions and trends in securities markets and the economy generally, Coastlands may pursue any objectives or use any techniques that it considers appropriate and in the interests of its clients. Risk Factors Investing in securities involves risk of loss that clients should be prepared to bear. Below are some of the risks that investors should consider before investing in any account that Coastlands manages. Any or all of these risks could materially and adversely affect investment performance, the value of any account or any security held in an account and could cause investors to lose substantial amounts of money. The following is only a brief summary of some of the risks that a client or investor may encounter. Potential investors in a Fund should review such Fund’s offering documents carefully and in its entirety, and consult with their professional advisers before deciding whether to invest. The risks described below also generally apply to individually managed accounts.

Client accounts may not achieve their investment objectives. Coastlands’ investment strategy may not be successful and investors may lose some or all of their investment.

Client accounts are concentrated in securities of companies in the biotechnology sector, and therefore client accounts will not be as diversified as most other investment vehicles. Stock prices in that sector have been, and Coastlands expects that they will continue to be, highly volatile. The liquidity of some securities in that sector is also unpredictable. Some of these companies have limited operating histories and the market values of many of these companies may often be based on speculation and expectations about future products and research progress. Many companies in the biotechnology sector are subject to competition and rapid technological developments that may make their products or services obsolete in a short period of time. Companies in the biotechnology sector are also subject to extensive government regulations and changes to those regulations can adversely affect them in ways that might not be predictable. For example, companies may be affected by developments in payment and reimbursement arrangements for particular types of medical tests and treatments.

Companies in the biotechnology sector are subject to unique risks due to increasing regulation of, and government intervention into, that industry and the complexity raised by ethical issues. Rapid advances in genetic engineering have also resulted in widely disparate regulations on bio-engineered medical products. Changes in the regulatory environment will affect biotechnology companies in ways that are not currently anticipated.

Investor sentiment on the market, an industry or an individual stock, fixed income or other security is not predictable and can adversely affect an account’s investments.

An account may hold stocks that disappoint earnings expectations and decline, and may short stocks that beat earnings expectations and rise.

Coastlands may not be able to obtain complete or accurate information about an investment and may misinterpret the information that it receives. Coastlands also may receive material, non-public information about an issuer that prevents it from trading securities of that issuer for a client when the client could make a profit or avoid losses.

Coastlands may take positions in securities of small market capitalizations that are less actively traded and more volatile than those of larger companies, although Coastlands also may invest all or a portion of client portfolios in companies with market capitalizations above that size. Coastlands may spend a considerable amount of time building a position, but may not be able to exit a position effectively through open market sales due to the adverse effect such sales may have on the price of the securities being sold. Coastlands may seek a buy-out or merger to realize an investment’s fair value in some cases, but there is no assurance that any such plan will succeed.

Coastlands may invest in securities of private companies and other restricted securities that are subject to long holding periods or that are not traded in public markets. There is no assurance that a private company will complete a public offering or be sold, and Coastlands may not be able to realize value on such positions for several years after the date of the initial investment, if at all. In addition, a client may be subject to, or may agree to become subject to, lock-up periods subsequent to an initial public offering or other liquidity event that may restrict the client’s ability to sell a position and distribute realized gains. In any case, the client accounts may continue to hold positions after they become liquid.

In addition to being illiquid, private companies are subject to a number of other risks, including, but not limited to: (i) extraordinarily high degree of business and financial risk and potential need for additional capital; (ii) substantial variation in operating results from period to period; (iii) additional funding requirements (which may not be available) and potential dilution; and (iv) significant time required for investments to mature and profits (if any) to be realized.

Coastlands has the ability to place certain designated investments in accounts (via side pockets) that may not be withdrawn or redeemed from the Funds. Investors who elect to participate in designated investments will have more limited liquidity with respect to their investments in the Funds.

Clients may be exposed to a variety of litigation risks, due to, for example, actions that Coastlands or its personnel take as shareholders or as board members of companies, particularly in consequence of the substantial likelihood that a company will face financial or other difficulties during the term of the client’s investment. The applicable clients may be required to indemnify Coastlands and its personnel for their losses and defense costs and expenses in connection with such litigation.

Coastlands may sell securities short (although it expects to do so only to a limited extent if at all), resulting in a theoretically unlimited risk of loss if the prices of the securities sold short increase. Management and stockholders of an issuer may sue short sellers to prevent short sales of the issuer’s securities. Coastlands could be subject to such actions, even if they are baseless, and clients could incur substantial costs defending them.

Coastlands may use hedging strategies (in addition to short selling), which may reduce profits, increase expenses and cause losses. Price movement in a hedging instrument and the security hedged do not always correlate, resulting in losses on both the hedged security and the hedging instrument. Coastlands is not obligated, however, to hedge a client’s portfolio positions.

An account may have higher portfolio turnover and transaction costs than a similar account managed by another investment adviser. These costs reduce investments and potential profit or increase loss.

Coastlands may use leverage by borrowing on margin, selling securities short and trading derivatives, which increases volatility and risk of loss. These instruments can be difficult to value. An incorrect valuation could result in losses.

Coastlands may sell covered and uncovered options on securities. The sale of uncovered options could result in unlimited losses.

Counterparties such as banks, brokers, dealers, custodians and administrators with which Coastlands does business on behalf of clients may default on their obligations. For example, a client may lose its assets on deposit with a bank or broker if the bank, broker, its clearing broker or an exchange clearing house becomes bankrupt.

Coastlands may cause a client to enter into repurchase agreements or reverse repurchase

agreements. These instruments can have effects similar to margin trading and leveraging strategies.

Coastlands will cause clients to invest in securities of non-U.S. issuers. The risks of these investments include: political risks; economic conditions of the country in which the issuer is located; limitations on foreign investment in any such country; currency exchange risks; withholding taxes; limited information about the issuer; limited liquidity; and limited regulatory oversight.

Changes in economic conditions, due to, among other things, changes in interest or inflation rates, credit availability or industry conditions, government regulation, tariffs, competition, technological developments, public health issues, war, political and diplomatic events and trends, changes to tax and other laws, and innumerable other factors, can adversely affect investment performance. Such changes in economic conditions can cause sharp declines and high volatility in global markets, affect the stability of major financial institutions and adversely affect the performance of client accounts.

Coastlands may acquire for a client a large position in an issuer’s securities, but the client nevertheless is unlikely to have any control over the issuer’s management. In addition, if Coastlands holds a large position in an issuer’s securities, it could depress the market for those securities.

Some of an account’s positions may be or become illiquid, in which case Coastlands may not be able to sell such positions.

Coastlands determines the value of securities held in client accounts, whether or not a public market exists for such instruments. If Coastlands’ valuation is inaccurate, it might receive more compensation than that to which it is entitled, a new investor in a Fund might receive an interest that is worth less than the investor paid and an investor that is withdrawing assets might receive more than the amount to which the investor is entitled, to the detriment of other investors.

Coastlands and its affiliates and agents generally are not responsible to any client or investor for losses incurred in an account (including any trade error), except to the extent required under the governing documents for the applicable client account or applicable law. To the extent that such exculpatory provisions purport to include limitation of liability or indemnification for liabilities arising under the Securities Act of 1933 (the “1933 Act”) or the Investment Advisers Act of 1940 (the “Advisers Act”), in the opinion of the SEC, these indemnification and limitation of liability provisions are contrary to public policy and therefore unenforceable.

There is not and will not be an active market for Fund interests. It may be impossible to transfer any such interests, even in an emergency.

A Fund may not be able to generate cash necessary to satisfy investor withdrawals. Substantial withdrawals in a short period could force Coastlands to liquidate investments too rapidly, and may so reduce the size of a Fund that it cannot generate returns or reduce losses.

A Fund may limit or suspend withdrawals of an investor’s assets from the Fund.

A Fund may establish a reserve for contingencies if Coastlands considers it appropriate. Investors may not withdraw or redeem assets covered by that reserve until it is lifted.

If the assets that Coastlands and its affiliates manage grow too large, it may adversely affect performance, because it is more difficult for Coastlands to find attractive investments as the amount of assets that it must invest increases.

No client or investor has been represented by separate counsel. The attorneys who represent Coastlands do not represent clients or investors. Clients and investors must hire their own counsel for legal advice and representation.

A Fund may dissolve or expel any investor at any time, even if such actions adversely affect one or more investors.

Coastlands, a Fund, Fund administrator or any government agency may freeze assets that any of them believes a client or investor holds in violation of anti-money laundering, know-yourclient or other applicable international sanctions laws or rules, and may transfer such assets to a government agency. None of Coastlands, a Fund or an administrator will be liable for losses related to actions taken in an effort to comply with any such regulations.

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Coastlands provides investment advice to the Funds and may provide advice to other clients in the future. Investors in the Funds are required to invest a minimum of $5 million, but Coastlands may waive this minimum. Coastlands’ clients are expected to include other investment firms, sovereign wealth funds, endowments, pension plans and other institutional investors.

Coastlands currently manages only accounts that pay performance-based compensation as described in Item 5. It does not manage accounts that do not pay performance-based compensation. Differences in Coastlands’ compensation arrangements with its clients, particularly if some clients were to pay higher performance-based compensation, could create incentives for Coastlands to manage client portfolios so as to favor those portfolios of clients paying higher performance-based compensation, as could Coastlands’ or its affiliates’ ownership interest (e.g., as the general partner) in some client accounts. Notwithstanding these conflicts, Coastlands will allocate transactions and opportunities among the various client accounts it manages in a manner it believes to be as equitable as possible, considering each account’s objectives, programs, limitations and capital available for investment, but even accounts with similar objectives will often have different investment portfolios. Performance-based compensation may provide a possible incentive for Coastlands to make riskier or more speculative investments on behalf of a client than it might make otherwise. Notwithstanding this potential incentive, Coastlands will evaluate investments in a manner that it considers to be in the best interest of its clients, given those clients’ investment objectives, investment strategies, suitability

of the investment, and risk profile.

Coastlands Capital GP LLC, a Delaware limited liability company (the “General Partner”) that Matthew D. Perry controls, is the general partner of the Funds. Coastlands and the General Partner act as commodity pool operators with respect to the Funds, and Coastlands acts as the commodity trading adviser with respect to its clients, but they are exempt from registration with the Commodity Futures Trading Commission.

Coastlands has adopted a Code of Ethics in compliance with Rule 204A-1 under the Advisers Act that establishes standards of conduct for Coastlands’ supervised persons. The Code of Ethics includes general requirements that Coastlands’ supervised persons comply with their fiduciary obligations to clients and applicable securities laws, and specific requirements relating to, among other things, personal trading, insider trading, conflicts of interest and confidentiality of client and investor information. It requires supervised persons to comply with the personal trading restrictions described below and periodically to report their personal securities transactions and holdings to Coastlands’ Chief Compliance Officer, and requires the Chief Compliance Officer or his delegate to review those reports. It also requires supervised persons to report any violations of the Code of Ethics promptly to the Chief Compliance Officer. Each supervised person of Coastlands receives a copy of the Code of Ethics and any amendments to it and must acknowledge in writing having received those materials. Each supervised person must certify that he or she complied with the Code of Ethics at least annually. Clients and prospective clients may obtain a copy of Coastlands’ Code of Ethics by contacting Mark Shamia at info@coastlands.capital. Under Coastlands’ Code of Ethics, Coastlands and its supervised persons generally must obtain preapproval for all personal transactions in private placements and IPOs. Coastlands and its supervised

persons also must obtain pre-approval for all personal transactions in individual securities. Prior approval will not be required for personal transactions in broad-based ETFs or open-end 1940 Act mutual funds, or any securities issued by any federal, state or local government of the U.S. or by any non-U.S. government. Coastlands may solicit investors who may or may not be Coastlands’ clients to invest in the Funds. Coastlands has an incentive to cause a client to invest in the Funds instead of an individually managed account because of the reduced expenses and administrative burdens of managing a Fund compared to an individually managed account, Coastlands’ performance compensation from a Fund receives more favorable tax treatment than that from an individually managed account and investors have less transparency and liquidity than individual account clients. If a Fund investor also is a Coastlands client (or related to a Coastlands client), the investor may use knowledge of the client’s portfolio or other information that Coastlands provides to the client to decide if and when to make an additional investment or withdraw assets from the Fund at times when other Fund investors would have made similar decisions had they had similar transparency. Coastlands discloses these conflicts of interest to clients and investors. At times when Coastlands manages more than one account, there will be conflicts of interest over its time devoted to managing any one account and allocating investment opportunities among those accounts. For example, Coastlands selects investments for each client based solely on investment considerations for that client. Different clients may have differing investment strategies and expected levels of trading. Coastlands may buy or sell a security for one type of client but not for another, or may buy (or sell) a security for one type of client while simultaneously selling (or buying) the same security for another type of client. Coastlands may give advice to, and take action on behalf of, any of its clients that differs from the advice that it gives or the timing or nature of action that it takes on behalf of any other client. Coastlands is not obligated to acquire for any account any security that Coastlands or its personnel may acquire for its or their own accounts or for any other client.

Factors Considered in Selecting Brokers. Unless a client requests a specific broker, Coastlands has complete discretion in selecting the broker that it uses for client transactions and the commission rates that clients pay such brokers. Coastlands generally allocates portfolio transactions to securities brokers (which term also includes futures commission merchants) based on various factors, subject to its duty to seek best execution. Coastlands considers such factors as it deems appropriate under the circumstances, including, but not limited to, net price, ability to effect the transaction, reliability, reputation, financial strength and stability, efficiency of execution and error resolution, confidentiality, special execution capabilities, block trading and block positioning capabilities, willingness to execute related or unrelated difficult transactions in the future, willingness to commit capital, knowledge of market participants, order of call, outsourced trading expertise and services of brokers that provide trading desks to their customers, access to company management and access to deal flow, research reports, services and conferences (including third party research fees), economic and market information, portfolio strategy advice, industry and company comments, technical data, recommendations, general reports, consultations, performance measuring data and software (including risk and quantitative models), online pricing, offering to Coastlands online access to

computerized data regarding clients’ accounts, computerized trading systems, clearance, settlement, quotation services and other matters involved in the receipt of brokerage services generally, as well as other brokerage and research services that benefit Coastlands, its affiliates and client accounts that are paid for or provided by these brokers. Soft Dollars. As stated above, b roker-dealers through which Coastlands effects transactions provide Coastlands with investment research and other products and services. These are generally made available to all institutional investors doing business with such broker-dealers. These services are made available to Coastlands on an unsolicited basis and without regard to the rates of commissions charged or paid by Coastlands or the volume of business Coastlands directs to such broker-dealers. In other words, Coastlands does not pay higher commissions for any such research or other products. Coastlands does not currently direct Fund brokerage in exchange for soft dollar benefits and does not maintain any formal soft dollar arrangements with broker-dealers. However, Coastlands may receive investment research, market information, and other products or services from broker-dealers in the ordinary course of business. Other Services and Benefits. The brokers that Coastlands selects for its clients (including its prime brokers) make available other services to Coastlands, such as capital introduction and business consulting services relating to operations, marketing assistance and intelligence, talent introduction and technology. Representatives of Coastlands also may be offered the opportunity to speak at conferences and programs sponsored by brokers for investors interested in investing in private investment funds. Brokers also may refer investors to Coastlands. Neither Coastlands nor any of its clients compensates brokers for any such services, benefits, referrals or for any investments ultimately made by prospective investors attending such events (except that Coastlands may enter into a separate placement or servicing agreement with any such broker or its affiliate if the client is added to the wealth management platform or similar program), but such activities may influence Coastlands in deciding whether to use a particular broker in connection with clients’ brokerage, financing and other activities. Trade Aggregation. At the time of filing this Brochure, Coastlands provides investment advisory services to the Fund and no other investment advisory client accounts. As such, Coastlands does not aggregate sale and purchase orders for multiple client accounts. In the event that Coastlands were to aggregate sale and purchase orders for client accounts, Coastlands will implement policies and procedures to govern this activity. Prime Brokers. Coastlands will retain one or more brokerage firms to serve as its prime brokers and custodians. Prime brokerage services generally include execution, clearing and settling transactions, margin and securities lending and custodial services for U.S. and non-U.S. assets in accordance with clients’ prime brokerage or similar agreements with such firms. Clients also may enter into swap or other derivative transactions with the prime brokers or their affiliates under separate agreements. The prime brokers also provide brokerage and research services and may provide other benefits, such as those described in the paragraphs above, that are commonly provided by most prime brokers. Coastlands expects to direct some client securities transactions to them and their affiliates, but is not required to direct a particular number of trades to them or to continue to use them as its client’s prime broker and custodian, but it has an incentive to do so based on their prior and continued services.

A client’s obligations to its prime brokers and their affiliates will be secured by way of a first priority perfected security interest over all of the client’s assets held in custody by them and their affiliates may transfer to themselves all rights, title and interest in and to those assets as collateral and may deal with, lend, dispose of, pledge or otherwise use all such collateral for their own purposes. If any such transfer occurs, the client will rank as such broker’s (or affiliate’s) unsecured creditor. If such prime broker or affiliate becomes insolvent, the client may not be able to recover such equivalent securities in full. In addition, the client’s cash held by a custodian may not be segregated from such custodian’s own cash and, if not so segregated, may be used by such custodian or affiliate in the course of its business and the client will therefore rank as an unsecured creditor in relation thereto. If any of the client’s investments are registered in the name of a custodian or affiliate due to the nature of the law or market practice of a particular jurisdiction, such investments will not be segregated from the custodian’s or affiliate’s own investments and if such custodian or affiliate becomes insolvent, the client may not be able to recover such equivalent investments in full. In addition, at any time when certain events of default occur, a prime broker may, without notice, cancel any outstanding orders for the purchase, sale, borrowing or lending of any securities or other property, terminate pending transactions, or sell or exercise any right or remedy with respect to any collateral posted to any account, or buy in any securities or other property that the client may be short. Custody. A client’s prime brokers are custodians for most of the client’s assets other than as described below. In connection with swap or other derivative transactions, a client account may post collateral with those firms or other counterparties that are “qualified custodians” under the Advisers Act. Certain clients (such as the Funds) also maintain bank accounts to process subscriptions, withdrawals and expense payments. Coastlands may replace any custodian or appoint additional custodians at any time without notice to the Fund’s investors. A Fund’s interests in privately-issued securities that require the issuer’s consent to transfer are recorded on the issuer’s or its transfer agent’s books and records. Directed Brokerage. Coastlands does not currently have any separately managed account clients and therefore does not have any clients that direct Coastlands to use a specific broker. If in the future a client directs Coastlands to use a specific broker, Coastlands has not negotiated the terms and conditions (including, among others, commission rates) relating to the services provided by such broker. Coastlands is not responsible for obtaining from any such broker the best prices or particular commission rates. A client that directs Coastlands to use a specific broker may not be able to participate in aggregate securities transactions and may trade after such aggregate transactions and receive less favorable pricing and execution. The client may pay higher commissions and mark-ups than it would pay if Coastlands had discretion to select broker-dealers other than those that the client chooses.

Coastlands may engage solicitors, placement agents or servicing agents in the future to whom it pays cash or a portion of the advisory fees paid by clients referred to it by those firms. Such compensation creates a conflict of interest. In such cases, this practice is disclosed in writing to the client and Coastlands complies with the other requirements of Rule 206(4)-1 under the Advisers Act, to the extent required by applicable law.

This Item is not applicable, because Coastlands has no reportable disciplinary information.

Coastlands’ portfolio manager reviews all accounts on a regular basis. Those reviews take into account such matters as the prospects of individual securities, changes in issuer earnings, industry outlook, market outlook and price levels, asset allocation and cash management. Each investor in the Funds receives a capital account statement at the end of each period specified in the Funds’ offering materials. Coastlands may change the content and frequency of its reporting or

provide certain investors or clients with more frequent updates.

Under the SEC’s custody rule, Coastlands Capital GP LLC, the general partner of the Funds, is deemed to have “custody” of the Funds’ assets, even though independent custodians actually hold the assets. An adviser (or its affiliate) with “custody” of a Fund’s assets must cause certain account statements detailing holdings and transactions to be sent to clients, and imposes certain other obligations. However, an adviser is not required to comply with those requirements if, among other things, the Fund provides investors with audited financial statements by a specified time each year and those financial statements meet certain requirements. Coastlands satisfies those conditions and therefore is not subject to reporting and other obligations. The custodian of each individually managed account provides continuous access to account information as well as monthly account statements. Each client should carefully review those statements and compare them with the statements that such client receives directly from Coastlands, if any.

Coastlands invests and trades the assets in a broad range of investments, to be selected at Coastlands’ sole discretion, with no specific limitations as to type, amount, concentration, or leverage, except as specified in the applicable Fund’s governing documents or offering materials or client’s investment management agreement. Coastlands has discretionary authority to manage investment accounts on behalf of clients pursuant to a grant of authority in each Fund’s governing document or a limited power of attorney in each client’s account agreement. Except for the Funds, such discretion is limited by the requirement that clients advise Coastlands of:

the investment objectives of the account; any changes or modifications to those objectives; and any specific investment restrictions relating to the account.

A client must promptly notify Coastlands in writing if the client considers any investments recommended or made for the account to violate such objectives or restrictions. A client may at any time direct Coastlands to sell any securities or take such other lawful actions as the client may specify to cause the account to comply with the client’s investment objectives. In addition, a client may notify Coastlands at any time not to invest any funds in the client’s account in specific securities or specific categories of securities.

Coastlands decides whether to vote proxies on behalf of each account over which Coastlands has proxy voting authority after considering whether the proposal will have a material effect on the account’s investment strategy. In some cases, this analysis may lead Coastlands not to vote proxies. In determining whether a proposal serves a client’s best interests, Coastlands considers a number of factors, including:

the proposal’s economic effect on shareholder value; the threat that the proposal poses to existing rights of shareholders; the dilution of existing shares that would result from the proposal; the effect of the proposal on management or director accountability to shareholders; and if the proposal is a shareholder initiative, whether it wastes time and resources of the company or reflects the grievance of one individual.

Coastlands may abstain from voting proxies when Coastlands believes that it is appropriate to do so. If a material conflict of interest over proxy voting arises between Coastlands and a client, Coastlands will vote all proxies in accordance with the policy described above. If Coastlands determines that this policy does not adequately address the conflict of interest, Coastlands will notify the client of the conflict and request that the client consent to Coastlands’ intended response to the proxy solicitation. If the client consents to Coastlands’ intended response or fails to respond to the notice within a reasonable time specified in the notice, Coastlands will vote the proxy as described in the notice. If the client objects in writing to Coastlands’ intended response, Coastlands will vote the proxy as the client directs. A client can obtain a copy of Coastlands’ proxy voting policy and a record of votes cast by Coastlands on behalf of that client by contacting Coastlands.

This Item is not applicable, because Coastlands is not required to report financial information.