Ericson Christian 4

What Happened

• Ericson Christian, Chief Operating Officer of Red Cat Holdings (RCAT), had 25,000 restricted stock units (RSUs) convert into common shares on March 17, 2026. The shares were valued at $15.54 each on the transaction date (25,000 × $15.54 ≈ $388,500).
• To satisfy tax withholding, 3,607 shares were surrendered at $15.54 per share for a tax payment of $56,053, leaving a net issuance of 21,393 shares to the reporting person (net value ≈ $332,447).
• This was not an open-market purchase or sale by the insider; it was the scheduled vesting/conversion of an awarded equity grant (routine for executives receiving RSUs).

Key Details

• Transaction date: March 17, 2026; Form 4 filed March 18, 2026 (timely).
• Conversion/Exercise code: M (exercise or conversion of derivative — here, RSUs converting to common stock).
• Tax withholding code: F (payment of exercise price or tax liability) — 3,607 shares at $15.54 each, total $56,053.
• Grant background: 25,000 RSUs were granted Dec 2, 2025, vesting 50% on March 17, 2026 and 50% on March 17, 2027 (footnotes).
• Shares owned after the transaction: not specified in the filing.

Context

• These RSUs represent a previously granted award (not an open-market buy/sell). The withholding of shares to cover taxes is a common, routine administrative action and does not necessarily indicate the insider's view of the stock.
• For investors, award conversions are neutral informational events (they increase insider share count but are the result of compensation vesting, not a purchase).