Form 4: DIRTT Environmental Solutions CFO Increases Stake Through RSU Vesting and Tax-Related Share Sale

DIRTT Environmental Solutions Ltd.'s Chief Financial Officer, Fareeha Khan, acquired 25,000 common shares through the vesting of Restricted Share Units (RSUs) and simultaneously disposed of 12,466 shares to cover tax obligations, resulting in a net increase in her direct beneficial ownership.

Summary

• Fareeha Khan, Chief Financial Officer of DIRTT Environmental Solutions Ltd. (DRTTF), reported changes in her beneficial ownership of company securities.
• On June 9, 2025, Ms. Khan acquired 25,000 common shares through the exercise of Restricted Share Units (RSUs).
• These RSUs were part of a grant of 75,000 RSUs on June 7, 2023, vesting in three equal annual installments, with one-third (25,000) vesting on June 9, 2025.
• The RSUs were converted into common stock on a one-to-one basis at the Issuer's discretion.
• Concurrently, Ms. Khan disposed of 12,466 common shares at a price of $0.62 per share (US$) to satisfy tax withholding obligations related to the RSU vesting.
• The price used for the RSU vesting calculation was C$0.85, which was the closing price on the Toronto Stock Exchange on June 6, 2025, converted using an exchange rate of C$1.3690 = US$1.00.
• Following these transactions, Ms. Khan's direct beneficial ownership of common shares increased to 216,559.
• She also continues to beneficially own 25,000 derivative securities (RSUs) after the reported transactions.

Sentiment

Score: 6

Explanation: The sentiment is slightly positive as the CFO's net beneficial ownership of common shares increased, indicating continued alignment with the company's performance. The transactions are routine and expected for equity compensation.

Positives

• The Chief Financial Officer increased her net beneficial ownership of common shares by 12,534 shares, demonstrating continued alignment with shareholder interests.
• The RSU vesting indicates the successful fulfillment of equity compensation terms for management.

Negatives

• A portion of the acquired shares (12,466) was immediately sold to cover tax liabilities, which is a common practice but reduces the direct equity holding.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic outlook.

Industry Context

This filing is a routine insider transaction report, common across all industries, reflecting the exercise of equity compensation. It does not provide specific insights into broader industry trends or competitive landscape for DIRTT Environmental Solutions Ltd.

Stakeholder Impact

• Shareholders: The increase in the CFO's direct share ownership may be viewed positively as it enhances management's alignment with shareholder interests and the company's long-term performance.

Next Steps

• The remaining two-thirds of the initial 75,000 RSU grant (50,000 RSUs) are expected to vest in equal annual installments on subsequent anniversaries of the grant date (June 7, 2023).

Key Dates

Recommendation

Keywords

DIRTT Environmental Solutions, DRTTF, SEC Form 4, Insider Transaction, Share Ownership, RSU Vesting, Equity Compensation, Fareeha Khan, Chief Financial Officer, Beneficial Ownership