Form 4: Digi Power X President Sells Shares in Pre-Planned Trade

Digi Power X Inc.'s President and Director, Alec Amar, sold 27,500 subordinate voting shares for a weighted average price of $2.53 per share in a pre-arranged transaction.

Summary

• Alec Amar, President, Director, and 10% owner of Digi Power X Inc. (DGXX), executed a sale of 27,500 subordinate voting shares.
• The transaction occurred on February 2, 2026, at a weighted average sale price of $2.53 per share, with individual trades ranging from $2.43 to $2.61.
• Following the sale, Amar directly beneficially owns 1,263,116 subordinate voting shares and indirectly owns 45,000 shares through Matbrands LLC.
• The transaction was made pursuant to a Rule 10b5-1(c) pre-planned contract, indicating it was scheduled in advance.
• Amar also holds significant derivative securities, including 665,000 fully vested employee stock options and 783,334 restricted stock units with various vesting schedules.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event. The pre-planned nature of the sale under Rule 10b5-1 mitigates concerns, and the insider retains substantial equity holdings.

Positives

• The transaction was executed under a Rule 10b5-1(c) plan, indicating a pre-planned sale rather than a reaction to new, undisclosed information.
• Alec Amar retains substantial direct and indirect beneficial ownership, including significant derivative holdings, demonstrating continued alignment with shareholder interests.

Negatives

• An insider sale, even if pre-planned, can sometimes be perceived negatively by the market as it reduces the insider's direct equity stake.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction, focusing solely on insider ownership changes.

Industry Context

StockSavvy.ai notes that insider sales, even when pre-planned under Rule 10b5-1, are routinely monitored by investors for potential signals regarding management's confidence in the company's future prospects. In the broader market, such transactions are often viewed in conjunction with overall market sentiment and company-specific news.

Related Party Transactions

• Alec Amar indirectly owns 45,000 subordinate voting shares through Matbrands LLC, which could be considered a related party.

Stakeholder Impact

• Shareholders: May interpret the insider sale differently; some might see it as a normal liquidity event, while others might view it with slight caution despite the 10b5-1 plan.

Next Steps

• First vesting installment for 266,667 restricted stock units begins on February 9, 2026.
• First vesting installment for 216,667 restricted stock units begins on December 1, 2026.
• First vesting installment for 300,000 restricted stock units begins on November 19, 2026.

Key Dates

Recommendation

The insider sale by President Alec Amar was executed under a pre-planned Rule 10b5-1 contract, which suggests it was not based on new, undisclosed negative information. While any insider sale warrants attention, Amar retains a substantial direct and indirect stake, along with significant derivative holdings. This indicates continued alignment with the company's long-term prospects. Therefore, the transaction itself does not provide a strong signal for a 'buy' or 'sell' action, supporting a 'hold' recommendation for existing investors to await further operational or financial updates.

Keywords

Digi Power X Inc., DGXX, Alec Amar, Insider Trading, Form 4, Share Sale, Beneficial Ownership, Stock Options, Restricted Stock Units, Corporate Governance