Ericson Christian 4

What Happened

• Christian Ericson, Chief Operating Officer of Red Cat Holdings (RCAT), received a grant of 16,294 restricted stock units (RSUs) on March 31, 2026. Under the grant, 25% (4,073 RSUs) vested immediately and were converted to common shares. To satisfy tax withholding, 1,176 of those shares were withheld at an effective withholding price of $13.09 per share, totaling $15,394. After withholding, Ericson retained 2,897 newly issued shares from the vested portion. The remaining 12,221 RSUs (75%) remain unvested and are scheduled to vest on December 31, 2026.

Key Details

• Transaction date: March 31, 2026; Form 4 filed April 13, 2026 (late filing).
• Grant: 16,294 RSUs (A) — each RSU represents a contingent right to one share.
• Immediate vesting/conversion: 4,073 RSUs vested and were converted to shares (M).
• Tax withholding: 1,176 shares withheld (F) at $13.09/share = $15,394.
• Net newly issued shares retained from this grant: 2,897.
• Unvested RSUs remaining: 12,221 (vesting on December 31, 2026).
• Shares owned after transaction: not specified in the filing.
• Filing timeliness: Form 4 was filed ~13 days after the March 31 transaction date (late).

Context

• This was a compensation-related award (RSUs), not an open-market purchase or sale; withholding to cover taxes is a routine administrative step and does not necessarily indicate a change in insider sentiment. The immediate conversion of vested RSUs to shares and the withholding of a portion for taxes is common practice. The late filing reduces the timeliness of public disclosure but does not change the substance of the transaction.