RELL Director Paul Plante Exercises Options, Sells Shares

What Happened
Paul J. Plante, a director of Richardson Electronics, Ltd. (RELL), exercised stock options on July 28, 2026 to acquire 10,000 shares (5,000 @ $15.60; 5,000 @ $15.51), paying about $155,550 total. On the same day he sold 17,000 shares in open-market transactions (10,000 sold at a weighted average of $18.60 and 7,000 at a weighted average of $19.12), generating approximately $319,813 in gross proceeds. The Form 4 also reports two derivative “disposal” line items of 5,000 shares each at $0.00, which commonly reflect shares withheld or surrendered in connection with option exercises (see Context below).

Key Details

• Transaction date: July 28, 2026; Form 4 filed July 30, 2026 (appears timely).
• Option exercises (acquisitions): 5,000 shares @ $15.60 = $78,000; 5,000 shares @ $15.51 = $77,550 (total cash paid ≈ $155,550).
• Open-market sales (dispositions): 10,000 shares @ weighted avg $18.60 = $185,991 (prices ranged $18.59–$18.65 per F1); 7,000 shares @ weighted avg $19.12 = $133,822 (prices ranged $18.63–$19.62 per F2). Total gross sale proceeds ≈ $319,813.
• Two derivative disposals reported as 5,000 shares each at $0.00 (derivative code M) — reported as disposals on the filing.
• Footnotes: F1 and F2 give price ranges for the weighted-average sale prices; F3 and F4 note options vested immediately (7/18/2022 and 7/17/2023).
• Shares owned after the transactions: not disclosed in this filing.

Context

• The combination of same-day option exercises and immediate share sales often indicates a cashless or partially cashless exercise (exercised shares are sold right away to cover exercise cost and taxes). The two $0.00 derivative disposals likely represent shares withheld/surrendered to satisfy exercise payment or tax withholding, though the filing does not explicitly state the reason.
• Purchases (option exercises) can be viewed as an acquisition signal, but immediate sales limit the informational value; sales are often routine or to cover costs.
• This is a director-level trade (not a 10% owner or grant award), and the filing appears timely (filed two days after the reported transactions).