Form 4: ADMA CEO Sells Shares Under Pre-Arranged Plan

ADMA Biologics CEO Adam S. Grossman executed a pre-planned sale of company stock, acquiring shares via option exercise and immediately selling them.

Summary

• Adam S. Grossman, President and CEO of ADMA Biologics, Inc., exercised stock options to acquire 15,000 shares of common stock at an exercise price of $5.40 per share.
• Concurrently, Grossman sold a total of 21,000 shares of common stock (15,000 shares and an additional 6,000 shares) at a price of $16.88 per share.
• These transactions, which occurred on August 15, 2025, were conducted pursuant to a Rule 10b5-1 trading plan established on December 5, 2024.
• Following these transactions, Grossman directly beneficially owns 2,031,850 shares of common stock, which includes 1,032,166 unvested Restricted Stock Units (RSUs) and 999,684 directly owned shares.
• Grossman also indirectly beneficially owns 1,143,426 shares through Areth, LLC, and 580,957 shares through Hariden, LLC, entities where he is a control person or managing member.
• He retains beneficial ownership of 780,950 stock options, with a portion vesting on February 26, 2025, and the remainder vesting monthly until February 26, 2028.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While insider selling can sometimes be viewed negatively, the fact that it was conducted under a pre-arranged 10b5-1 plan mitigates concerns about opportunistic selling. The exercise of options at a lower price indicates the executive is realizing value from long-term incentives.

Positives

• The exercise of stock options at a significantly lower price ($5.40) compared to the sale price ($16.88) indicates a substantial personal gain for the CEO from long-term incentives.
• The transaction was executed under a Rule 10b5-1 trading plan, which demonstrates pre-planning and reduces concerns about opportunistic insider trading.

Negatives

• The sale of 21,000 shares by a key executive, even if pre-planned, could be perceived by some investors as a reduction in direct exposure to the company's future performance.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic outlook.

Related Party Transactions

• Shares are indirectly owned by Areth, LLC, where the reporting person (Adam S. Grossman) is a control person.
• Shares are indirectly owned by Hariden, LLC, where the reporting person (Adam S. Grossman) is the managing member.

Stakeholder Impact

• Shareholders may view the pre-planned sale as a routine liquidity event for the CEO, consistent with long-term compensation strategies.
• The transaction does not directly impact employees, customers, suppliers, or creditors, as it relates to executive stock ownership and compensation.

Key Dates

Recommendation

This Form 4 filing details a pre-planned insider transaction (exercise of options and subsequent sale) by the CEO under a Rule 10b5-1 plan. Such transactions are generally routine and do not typically signal new fundamental information about the company's prospects. Therefore, it does not provide a basis for changing an investment thesis, warranting a 'hold' recommendation.

Keywords

ADMA Biologics, Adam S. Grossman, SEC Form 4, Insider Trading, Stock Option Exercise, Share Sale, Rule 10b5-1 Plan, Executive Compensation, Biologics, Pharmaceutical