Form 4: My Size, Inc. Chief Growth Officer's Stock Options Repriced to Current Market Price Following Reverse Stock Split

My Size, Inc. has repriced stock options for its Chief Growth Officer, Borja Cembrero Saralegui, to $1.28 per share, aligning with the closing price on June 4, 2025, following a 1-for-8 reverse stock split.

Summary

• Borja Cembrero Saralegui, Chief Growth Officer of My Size, Inc., had his stock options repriced.
• The exercise price for 1,688 options originally at $8.72 and 2,500 options originally at $3.832 was reduced to $1.28 per share.
• This new exercise price of $1.28 per share matches the closing price of My Size, Inc.'s common stock on June 4, 2025.
• The repricing was approved by the Board of Directors and became effective on June 4, 2025.
• All other terms of the options, including vesting schedules and expiration dates, remain unchanged.
• The company implemented a 1-for-8 reverse stock split on April 23, 2024, and all reported amounts are adjusted to reflect this.

Sentiment

Score: 3

Explanation: The repricing of options and a significant reverse stock split are generally negative indicators, suggesting past stock underperformance and potential financial distress. While repricing can re-incentivize management, it comes at the cost of shareholder dilution and reflects a need to adjust for a significantly lower stock valuation.

Positives

• Repricing can re-incentivize management by making options in-the-money or closer to it, potentially aligning their interests with shareholders if the stock price recovers.

Negatives

• Option repricing typically occurs when a company's stock price has significantly declined, rendering existing options out-of-the-money and ineffective as an incentive.
• A 1-for-8 reverse stock split often indicates a low stock price and can be a sign of financial distress or an attempt to maintain listing requirements.
• Shareholders who acquired shares before the reverse split effectively own fewer shares, though the total value should theoretically remain the same.

Risks

• Vesting of options is subject to the Reporting Person's continued service, meaning the benefits are contingent on their employment.
• The effectiveness of the repriced options as an incentive depends on future stock price performance.

Future Outlook

The document does not provide explicit forward-looking statements or guidance beyond the vesting schedules of the repriced options, which are contingent on continued service.

Industry Context

Option repricing and reverse stock splits are common actions taken by companies, particularly in the technology or growth sectors, when their stock price has significantly underperformed. Repricing aims to restore the incentive value of equity awards for executives, while reverse splits are often used to boost share price to meet exchange listing requirements or improve market perception, though they do not change the company's underlying value.

Comparison to Industry Standards

• Option repricing is generally viewed negatively by corporate governance advocates as it dilutes shareholder value and rewards management for poor stock performance. However, it is a common practice, especially among smaller, volatile companies, to retain and motivate key personnel when options are deeply out-of-the-money. For example, companies like Zynga (2012) and Groupon (2013) have undertaken similar repricings.
• A 1-for-8 reverse stock split is a significant consolidation, comparable to actions taken by companies like Rite Aid (2023, 1-for-20) or Bed Bath & Beyond (2023, 1-for-10) when facing severe financial challenges or delisting threats. These actions are typically indicative of a company struggling to maintain investor confidence and market capitalization, contrasting with stable, high-growth companies that rarely resort to such measures.

Corporate Governance

Stakeholder Impact

• Shareholders: Potential dilution from repriced options (though the number of shares is small in this specific filing, the principle of repricing can be dilutive). The reverse stock split reduces the number of shares outstanding, which can be perceived negatively.
• Employees (specifically Chief Growth Officer): Re-incentivized with in-the-money options, contingent on continued service.

Next Steps

• Continued service of the Chief Growth Officer for option vesting.
• Future stock price performance will determine the value of the repriced options.

Key Dates

Recommendation

Keywords

My Size Inc., MYSZ, SEC Form 4, Stock Options, Option Repricing, Reverse Stock Split, Executive Compensation, Beneficial Ownership, Corporate Governance, Chief Growth Officer