Form 4: Eliem Therapeutics Executive Chairman Acquires Stock Options

Andrew David Levin, Executive Chairman of Eliem Therapeutics, acquired 10,000 stock options on June 26, 2024, at an exercise price of $7.89.

Summary

• Andrew David Levin, the Executive Chairman of Eliem Therapeutics, Inc. (ELYM), filed a Form 4 on June 28, 2024.
• The filing reports a transaction that occurred on June 26, 2024, where Levin acquired 10,000 stock options.
• The exercise price of these options is $7.89.
• The options vest on the earlier of June 26, 2025, or the day before the next annual meeting of stockholders, contingent on continuous service.
• Levin holds the stock options for the benefit of RA Capital Management funds and a separately managed account and will turn over any proceeds from exercising the options to offset advisory fees.
• Levin disclaims beneficial ownership of the stock option and underlying Common Stock.

Sentiment

Score: 5

Explanation: The document is a routine regulatory filing, so the sentiment is neutral.

Management Comments

• Levin disclaims beneficial ownership of the stock option and underlying Common Stock.

Industry Context

Form 4 filings are standard disclosures required by the SEC when insiders of a publicly traded company buy or sell the company's securities. This filing indicates a transaction involving stock options by the Executive Chairman of Eliem Therapeutics.

Related Party Transactions

• The Reporting Person's arrangement with RA Capital Management, L.P. (the 'Adviser'), the Reporting Person holds the stock option for the benefit of the RA Capital Healthcare Fund, L.P. (the 'Fund'), RA Capital Nexus Fund, L.P. (the 'Nexus Fund'), RA Capital Nexus Fund II, L.P. (the 'Nexus Fund II'), and a separately managed account (the 'Account').
• The Reporting Person is obligated to turn over to the Adviser any net cash or stock received upon exercise of the stock option, which will offset advisory fees owed by the Fund, the Nexus Fund, the Nexus Fund II, and the Account to the Adviser.

Stakeholder Impact

• The acquisition of stock options by a key executive could be viewed positively by shareholders as it aligns the executive's interests with the company's performance.

Key Dates