Processa (PCSA) Director Sheila Gujrathi Receives Preferred Award

What Happened
Sheila Gujrathi, a director of Processa Pharmaceuticals, was awarded two grants of Series A Non‑Voting Convertible Preferred Stock on July 28, 2026 (70,811.877 and 12,311.279 shares, total 83,123.156). The filing reports these as awards/grants (transaction code A); no per‑share cash price or dollar value is reported. These preferred shares were issued in connection with the closing of a merger with Vidya Therapeutics and were received in exchange for Vidya common stock.

Key Details

• Transaction date: July 28, 2026; Form 4 filed July 30, 2026 (timely within standard Form 4 reporting window).
• Securities awarded: 70,811.877 Series A preferred + 12,311.279 Series A preferred = 83,123.156 Series A preferred (transaction code A). Price: N/A.
• Shares owned after transaction: Not specified in the filing.
• Footnote highlights:
  • F1: Each Series A preferred share is convertible into 1,000 shares of Processa common stock; the preferred has no expiration date.
  • F2–F3: These preferred shares were issued as consideration under the Merger Agreement with Vidya Therapeutics (exchange mechanics described in the filing).
  • F4: The reporting person is a co‑portfolio manager with interests through SilverArc funds and disclaims direct beneficial ownership of certain fund‑held shares except to the extent of any pecuniary interest.
• Transaction type: Award/grant (derivative security), not an open‑market purchase or sale.

Context

• These are derivative/convertible preferred shares granted as merger consideration, not a cash purchase; they represent conversion rights rather than immediate common‑stock purchases. If fully converted at the stated ratio, the 83,123.156 preferred shares would correspond to approximately 83.12 million common shares, but conversion is subject to conditions in the Certificate of Designation.
• Awards issued in M&A deals are common and reflect deal consideration; they should be viewed differently from insider purchases or sales when assessing insider sentiment.