Form 4: Beyond Air Director Ron Bentsur Adjusts Stock Options Through Repricing

Director Ron Bentsur of Beyond Air, Inc. had his stock options repriced to $0.54 per share on November 22, 2024, affecting multiple option grants.

Summary

• Ron Bentsur, a director at Beyond Air, Inc., had several of his stock options repriced on November 22, 2024.
• The exercise price for multiple stock option grants was reduced to $0.54 per share, which was the closing price of the company's common stock on that date.
• The repricing affected options with previous exercise prices of $1.53, $6.28, $6.87, $5.45, $5.32, and $4.80.
• A total of 289,000 options were repriced, with the number of options at each price point ranging from 24,000 to 45,000.
• The repricing was approved by the company's Board of Directors and is effective as of November 22, 2024.
• The options remain subject to the original vesting schedules and the director's continued service with the company.

Sentiment

Score: 5

Explanation: The document is neutral in sentiment. It reports a standard corporate action of repricing stock options. While it could be seen as a negative signal, it is a common practice and the new price is at the money.

Positives

• The repricing of stock options at a lower price of $0.54 per share may incentivize the director to work towards increasing the company's share price.
• The repricing aligns the director's interests with those of the shareholders by making the options more likely to be in the money.

Negatives

• The repricing of stock options may be seen as a negative signal by some investors, as it suggests that the previous option prices were not achievable.
• The repricing could potentially dilute the value of existing shares if the options are exercised.

Risks

• The repricing of stock options could lead to increased selling pressure if the director decides to exercise and sell the shares.
• The repricing may not be sufficient to motivate the director if the company's share price does not increase significantly.

Management Comments

• The Issuer's Board of Directors approved an option repricing, effective as of November 22, 2024, reducing the exercise price to $0.54 per share.

Industry Context

Stock option repricing is a common practice in the corporate world, often used to retain and incentivize key personnel when a company's stock price has declined. This action is not unusual, but the specific details of the repricing are unique to Beyond Air.

Comparison to Industry Standards

• Stock option repricing is a common practice, especially in volatile markets, and is often used by companies to ensure that employee and director incentives remain effective.
• Companies like Tesla and Amazon have also used stock options as a key part of their compensation packages, but the specific terms and conditions vary widely.
• The repricing of options to the closing price of the stock on the effective date is a standard practice to ensure the options are at least at the money.

Stakeholder Impact

• Shareholders may view the repricing as a positive or negative signal depending on their perspective on the company's future performance.
• Employees holding stock options may benefit from the repricing if the company's share price increases.

Key Dates

Keywords

stock options, repricing, director, insider trading, equity incentive plan, beneficial ownership, Beyond Air, XAIR