Form 4: Cara Therapeutics CEO Sells Shares to Cover Tax Obligations
SEC Form 4 Filing
Christopher Posner, CEO of Cara Therapeutics, sold 3,936 shares of common stock to cover tax obligations related to vesting restricted stock units.
Summary
- Christopher Posner, the President and CEO of Cara Therapeutics, Inc., reported a transaction involving the sale of company stock.
- On May 2, 2024, Posner sold 3,936 shares of common stock at a weighted average price of $0.75 per share.
- The sale was executed under a pre-arranged 'sell to cover' arrangement adopted on November 2, 2022, to satisfy tax withholding obligations triggered by the vesting of restricted stock units.
- Following the transaction, Posner directly owns 176,585 shares of Cara Therapeutics common stock.
Sentiment
Score: 5
Explanation: The document describes a routine stock sale to cover tax obligations, which is neither particularly positive nor negative. It's a neutral event.
Industry Context
Sales of shares to cover tax obligations are a common practice among executives who receive stock-based compensation. The use of a 10b5-1 plan indicates that the sales were pre-planned and not based on inside information.
Key Dates
| Date | Description |
|---|---|
| 2022-11-02 | Date the Reporting Person adopted a 'sell to cover' arrangement in accordance with Rule 10b5-1. |
| 2024-05-02 | Date of the transaction: sale of 3,936 shares of Common Stock. |
| 2024-05-06 | Date of report. |
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