Form 4: Black Diamond Therapeutics Director Acquires Shares in Lieu of Cash Compensation

A Black Diamond Therapeutics director, Ali Behbahani, acquired 5,750 shares of common stock in lieu of cash compensation and disposed of 63,334 shares, while indirectly holding 4,448,757 shares through related entities.

Summary

• Ali Behbahani, a director at Black Diamond Therapeutics, acquired 5,750 shares of common stock on December 13, 2024.
• These shares were received in lieu of cash compensation for his services as a non-employee director.
• The shares were valued at $2.5 each, based on the closing market price on December 12, 2024.
• Mr. Behbahani also disposed of 63,334 shares.
• He indirectly holds 4,448,757 shares through NEA 16, where he is a manager of the general partner.
• Mr. Behbahani disclaims beneficial ownership of the shares held by NEA 16 in which he has no pecuniary interest.

Sentiment

Score: 6

Explanation: The document is neutral, detailing a routine transaction. The acquisition of shares is a positive sign, but the disposal of shares is a slight negative. Overall, it's a standard insider transaction.

Positives

• The acquisition of shares by a director demonstrates confidence in the company's future.
• Receiving shares in lieu of cash compensation aligns the director's interests with those of shareholders.

Negatives

• The disposal of 63,334 shares could be seen as a negative signal, although the reason for the disposal is not stated.

Risks

• The document does not provide any specific risks, but the disposal of shares by a director could be a concern for some investors.
• The indirect ownership structure through multiple entities adds complexity to the ownership structure.

Industry Context

This is a standard SEC Form 4 filing, which is common for publicly traded companies when insiders buy or sell shares. It provides transparency into the transactions of company directors and officers.

Comparison to Industry Standards

• Form 4 filings are a standard practice for publicly traded companies in the US, ensuring transparency of insider transactions.
• The transaction is typical for directors receiving equity as part of their compensation, similar to practices at other biotech companies such as Amgen or Regeneron.
• The indirect ownership through investment partnerships is also common among venture-backed companies, similar to structures seen at companies like Moderna or BioNTech.

Stakeholder Impact

• The share acquisition by a director could be viewed positively by shareholders.
• The disposal of shares could cause some concern among shareholders.

Key Dates

Keywords

Black Diamond Therapeutics, director, share acquisition, common stock, insider trading, compensation, beneficial ownership, NEA 16