Form 4: Polaris Venture Management Distributes Alector Shares In-Kind

Polaris Venture Management Co. VI, L.L.C. and affiliated funds distributed Alector, Inc. (ALEC) shares pro-rata to its members, reflecting a change in ownership form rather than a purchase or sale.

Summary

• Polaris Venture Management Co. VI, L.L.C. and related entities, including Polaris Venture Partners Founders' Fund VI, L.P. (PVPFF VI), Polaris Venture Partners VI (AIV), L.P. (PVP VI AIV), Polaris Venture Partners VI (AIV-B), L.P. (PVP VI AIV-B), and Polaris Venture Partners VI, L.P. (PVP VI), executed a pro-rata distribution of Alector, Inc. (ALEC) common stock on April 30, 2024.
• The distribution involved 500,000 shares from the Polaris Funds to Polaris Venture Management Co. VI, L.L.C. and 98,533 shares from Polaris Venture Management Co. VI, L.L.C. to its members.
• This distribution was not a purchase or sale but a change in the form of ownership, with no additional consideration involved.
• Following the transaction, the Polaris Funds collectively hold 10,353,817 shares of Alector, Inc.
• Polaris Venture Management Co. VI, L.L.C. directly holds 98,533 shares after receiving the distribution.
• The managing members of Polaris Venture Management Co. VI, L.L.C. disclaim beneficial ownership of the securities held by the Polaris Funds, except to the extent of their pecuniary interest.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction (pro-rata distribution) and doesn't inherently indicate positive or negative sentiment. The score reflects the neutral nature of the event.

Positives

• The distribution simplifies the ownership structure of Alector shares held by Polaris Venture Management and its affiliated funds.
• The pro-rata distribution ensures fair allocation of shares among the members of Polaris Venture Management Co. VI, L.L.C.

Industry Context

Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders and major shareholders, providing transparency to the market.

Comparison to Industry Standards

• Similar pro-rata distributions are common among venture capital firms when allocating shares to their partners or members.
• The filing is consistent with SEC regulations regarding disclosure of insider transactions, similar to filings made by other major shareholders in publicly traded companies.

Stakeholder Impact

• The distribution has a minimal direct impact on Alector's stakeholders, as it represents an internal transfer of shares within the Polaris Venture Management structure.
• The transaction does not affect the company's operations, financial condition, or strategic direction.

Key Dates