Form 4: Cyclo Therapeutics Director Receives Stock Grant in Lieu of Cash Compensation

A Cyclo Therapeutics director, Shawn Cross, received 17,228 shares of common stock in lieu of cash compensation for the third quarter of 2024.

Summary

• Shawn Cross, a director at Cyclo Therapeutics, received 17,228 shares of common stock.
• This stock grant was in place of cash compensation for the third quarter of 2024.
• The number of shares was calculated based on a price of $0.66 per share, which was the closing price on November 14, 2024.
• Following this transaction, Mr. Cross directly owns 107,749 shares of Cyclo Therapeutics common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction of director compensation, which is generally neutral to positive. The use of stock instead of cash is a positive sign for cash management.

Positives

• The grant of shares aligns director interests with shareholders.
• The use of stock instead of cash may preserve company cash reserves.

Industry Context

This type of stock-based compensation is common for directors of publicly traded companies, aligning their interests with those of shareholders.

Comparison to Industry Standards

• Stock grants in lieu of cash compensation are a common practice among publicly listed companies, particularly for non-employee directors.
• This method of compensation is often used to conserve cash and align the interests of directors with the long-term performance of the company.
• Many biotech companies, such as Cassava Sciences and Amylyx Pharmaceuticals, use similar compensation strategies for their board members.

Stakeholder Impact

• Shareholders may view the stock grant positively as it aligns director interests with company performance.
• The use of stock instead of cash may be seen as a positive for the company's financial health.

Key Dates

Keywords

Cyclo Therapeutics, Director Compensation, Stock Grant, Shawn Cross, Equity, Form 4, Insider Trading