Form 4: Recursion Pharmaceuticals CEO Christopher Gibson Reports Stock Sales Under 10b5-1 Plan
SEC Form 4 Filing
Christopher Gibson, CEO of Recursion Pharmaceuticals, reported the sale of 40,000 shares of Class A Common Stock under a pre-arranged 10b5-1 trading plan.
Summary
- Christopher Gibson, the CEO of Recursion Pharmaceuticals, filed a Form 4 detailing changes in his beneficial ownership of the company's stock.
- On January 8, 2025, and January 10, 2025, Gibson converted 20,000 shares of Class B Common Stock into Class A Common Stock on each day.
- Simultaneously, he sold 20,000 shares of Class A Common Stock on each day at prices of $7.31 and $7.05, respectively.
- These transactions were executed under a Rule 10b5-1 trading plan adopted on December 27, 2023.
- Following these transactions, Gibson directly owns 736,633 shares of Class A Common Stock.
- He also indirectly owns shares through LAHWRAN-3 LLC (486,000 shares), LAHWRAN-4 LLC (388,000 shares), and the Gibson Family Trust (67,875 shares).
- Gibson also holds options to purchase a significant number of Class A Common Stock at various exercise prices and vesting schedules.
Sentiment
Score: 5
Explanation: The sentiment is neutral. The document simply reports stock sales under a pre-existing plan, which is a normal part of executive compensation and portfolio management.
Industry Context
Sales by insiders are common and often pre-planned, especially in the pharmaceutical industry where stock options form a significant part of executive compensation. The use of a 10b5-1 plan suggests the sales were planned well in advance to avoid any accusations of trading on inside information.
Comparison to Industry Standards
- Comparing Recursion Pharmaceuticals to similar biotech companies like Exscientia or Schrödinger, insider selling is a common occurrence.
- Executives often use 10b5-1 plans to diversify their holdings, especially after periods of significant stock appreciation or ahead of anticipated milestones.
- The amounts sold by Christopher Gibson are within a typical range for CEOs of publicly traded biotech firms.
Stakeholder Impact
- The stock sales could have a minor negative impact on shareholder sentiment, although the existence of a 10b5-1 plan mitigates this concern.
- The sales do not directly impact employees, customers, suppliers, or creditors.
Key Dates
| Date | Description |
|---|---|
| 12/27/2023 | Date of adoption of Rule 10b5-1 trading plan |
| 02/04/2022 | Original vesting start date for 5,436 options at $11.4 |
| 03/01/2022 | Vesting start date for 399,002 options at $11.4 |
| 03/01/2023 | Vesting start date for 813,600 options at $8.55 |
| 03/01/2024 | Vesting start date for 666,898 options at $10.09 |
| 01/08/2025 | Conversion of 20,000 Class B shares to Class A and sale of 20,000 Class A shares at $7.31 |
| 01/10/2025 | Conversion of 20,000 Class B shares to Class A and sale of 20,000 Class A shares at $7.05 |
| 02/04/2032 | Expiration date for 399,002 options at $11.4 and 5,436 options at $11.4 |
| 02/01/2033 | Expiration date for 813,600 options at $8.55 |
| 02/09/2034 | Expiration date for 666,898 options at $10.09 |
| 12/30/2030 | Expiration date for 282,500 options at $2.48 |
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