Form 4: Cabaletta Bio CFO Receives Repriced Stock Options

Anup Marda, CFO of Cabaletta Bio, receives repriced stock options with a new exercise price of $1.92 per share, effective May 19, 2025.

Summary

• Anup Marda, the Chief Financial Officer of Cabaletta Bio, Inc., has been granted repriced stock options.
• The repricing was approved by the Issuer's board of directors on May 15, 2025, and became effective on May 19, 2025.
• The new exercise price for the options is $1.92 per share, reflecting the fair market value of Cabaletta Bio's common stock on the repricing date.
• Marda received multiple tranches of options with varying original exercise prices, all of which were repriced to $1.92.
• The repriced options are subject to a retention period, during which the original exercise price will be reinstated if the options are exercised before the one-year anniversary of the repricing date, a sale event, or termination of service due to death or disability.

Sentiment

Score: 6

Explanation: The document is neutral. It simply reports the repricing of stock options for the CFO. The impact on the company's future performance is uncertain.

Positives

• The repricing of stock options may incentivize the CFO to remain with the company.
• The new exercise price aligns with the current fair market value of the company's stock.

Risks

• If the CFO leaves the company before the end of the retention period, the benefit of the repriced options may be negated.
• The repricing could be perceived negatively by shareholders if the stock price does not increase.

Future Outlook

The document does not contain specific forward-looking statements beyond the terms of the option repricing.

Industry Context

Option repricing is a common practice to incentivize employees, especially when a company's stock price has declined. This is often seen in the biotech industry to retain key personnel.

Comparison to Industry Standards

• Option repricing is a fairly common practice in the biotech industry, especially for companies that have seen their stock price decline.
• Companies like Amgen, Gilead, and Biogen also use stock options as part of their compensation packages, but the specific terms and conditions vary widely.
• The retention period attached to the repriced options is a mechanism to ensure continued service, which aligns with industry best practices for retaining key executives.

Stakeholder Impact

• Shareholders may view the repricing as a positive sign of management's commitment, or negatively if the stock price does not improve.
• Employees may see the repricing as a positive sign of the company's commitment to its employees.
• The repricing has no direct impact on customers, suppliers, or creditors.

Key Dates

Keywords

stock options, Cabaletta Bio, Anup Marda, repricing, CFO, Form 4, derivative securities, incentive plan