Form 4: ADMA Biologics CEO Adam Grossman Executes Pre-Planned Stock Sales and Option Exercise
Insider Transaction Report
ADMA Biologics President and CEO Adam S. Grossman reported the exercise of stock options and subsequent sale of shares totaling 21,000 shares of common stock, executed under a pre-arranged Rule 10b5-1 trading plan.
Summary
- Adam S. Grossman, President and CEO of ADMA Biologics, Inc., reported transactions involving the company's common stock on June 16, 2025.
- Mr. Grossman acquired 15,000 shares of common stock by exercising stock options at a price of $5.4 per share.
- Concurrently, he sold a total of 21,000 shares of common stock (15,000 shares and 6,000 shares in separate transactions) at a price of $20.81 per share.
- All reported transactions were conducted pursuant to a Rule 10b5-1 trading plan established on December 5, 2024.
- Following these transactions, Mr. Grossman directly beneficially owns 2,043,850 shares of common stock.
- He also indirectly beneficially owns 1,143,426 shares through Areth, LLC, and 580,957 shares through Hariden, LLC, entities where he holds control or managing member positions.
- The filing also details significant unvested Restricted Stock Units (RSUs) and remaining stock options held by Mr. Grossman, including 810,950 unexercised stock options.
Sentiment
Score: 5
Explanation: The sentiment is neutral. While there's insider selling, it's part of a pre-planned Rule 10b5-1 program, which is a common and expected practice for executives to manage their equity holdings and liquidity. The significant profit from the option exercise is positive for the executive but the sale itself is neutral for the company's outlook.
Positives
- The exercise of stock options at a price of $5.4 and subsequent sale at $20.81 indicates a significant profit for the insider on the exercised shares.
- The transactions were executed under a pre-arranged Rule 10b5-1 trading plan, which suggests a systematic approach to managing equity and reduces the perception of opportunistic insider trading.
Negatives
- The sale of 21,000 shares by a key executive (President and CEO) could be perceived negatively by some investors, as it reduces the insider's direct equity stake in the company.
Related Party Transactions
- Shares owned by Areth, LLC, where the reporting person (Adam S. Grossman) is a control person.
- Shares owned by Hariden, LLC, where the reporting person (Adam S. Grossman) is the managing member.
Stakeholder Impact
- Shareholders: The sale of shares by the CEO could be interpreted differently by shareholders; some may view it as a routine liquidity event under a 10b5-1 plan, while others might see it as a reduction in insider alignment. The profit from the option exercise is a positive for the executive.
- Employees: The details of unvested RSUs and stock options highlight the company's equity compensation structure for executives, which can impact employee morale and retention strategies.
Key Dates
| Date | Description |
|---|---|
| 2022-03-07 | Grant date for 75,000 unvested RSUs, vesting quarterly over four years. |
| 2023-03-06 | Grant date for 286,848 unvested RSUs, vesting quarterly over four years. |
| 2024-02-26 | Grant date for 418,296 unvested RSUs, vesting quarterly over four years, and grant date for stock option (right to buy) with 25% vesting on February 26, 2025. |
| 2024-12-05 | Date Rule 10b5-1 trading plan was entered into between the reporting person and Fidelity Brokerage Services LLC. |
| 2025-02-19 | Grant date for 252,022 unvested RSUs, vesting quarterly over four years. |
| 2025-02-26 | One-year anniversary of stock option grant, when 25% (217,737 shares) of the shares underlying the option vested. |
| 2025-06-16 | Date of stock option exercise and subsequent sale transactions. |
| 2025-06-18 | Signature date of the Form 4 filing. |
| 2028-02-26 | Date when the stock option granted on February 26, 2024, will be fully vested. |
| 2034-02-26 | Expiration date of the stock option. |
Keywords
ADMA Biologics, ADMA, Form 4, SEC filing, insider trading, stock options, Rule 10b5-1 plan, common stock, executive compensation, Adam S. Grossman, beneficial ownership
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