VARKI PAUL 4
4 · Avalo Therapeutics, Inc. · Filed May 7, 2026
Research Summary
AI-generated summary of this filing
Avalo Therapeutics (AVTX) CLO Varki Paul Exercises Options, Sells Shares
What Happened Varki Paul, Chief Legal Officer of Avalo Therapeutics (AVTX), exercised a total of 75,063 option shares on May 6, 2026 and promptly sold the same 75,063 shares that day. He exercised 62,500 shares at $13.43 (cost $839,375) and 12,563 shares at $8.04 (cost ~$101,007), for aggregate exercise proceeds of about $940,382. The open‑market sales (75,063 shares) generated gross proceeds of approximately $1,513,673. The filing shows the exercise and the sales were effected under a Rule 10b5‑1 trading plan.
Key Details
- Transaction date: May 6, 2026; Form 4 filed May 7, 2026 (appears timely).
- Options exercised: 62,500 @ $13.43 ($839,375) and 12,563 @ $8.04 (~$101,007) — total 75,063 shares acquired.
- Shares sold: 75,063 shares in multiple trades; reported sale prices include $18.91, $19.78, $21.22, $22.70 and $23.71 (gross proceeds ≈ $1,513,673). Footnotes list sale price ranges: $18.50–$19.495 (F2), $19.50–$19.99 (F3), $20.75–$21.69 (F4), $22.15–$22.88 (F5); the filer will provide per‑price details on request.
- $0.00 disposal entries reflect the exercise/conversion reporting for the derivative transactions.
- 10b5‑1 plan: Transactions were made pursuant to a Rule 10b5‑1 trading plan adopted Nov 12, 2025 (F1).
- Vesting notes: Footnotes indicate vesting schedules apply to option grants (F6, F7).
- Shares owned after the transactions: not provided in the information supplied.
Context Because the number of shares exercised equals the number sold, this resembles a cashless exercise (exercise followed by immediate sale), a common way for insiders to cover option exercise costs and taxes. Such transactions are often routine when executed under a pre‑arranged 10b5‑1 plan and do not, by themselves, indicate a change in the insider’s view of the company.
Insider Transaction Report
- Exercise/Conversion
Common Stock
[F1]2026-05-06$13.43/sh+62,500$839,375→ 66,134 total - Exercise/Conversion
Common Stock
[F1]2026-05-06$8.04/sh+12,563$101,007→ 78,697 total - Sale
Common Stock
[F1][F2]2026-05-06$18.91/sh−37,375$706,836→ 41,322 total - Sale
Common Stock
[F1][F3]2026-05-06$19.78/sh−5,196$102,783→ 36,126 total - Sale
Common Stock
[F1][F4]2026-05-06$21.22/sh−22,839$484,541→ 13,287 total - Sale
Common Stock
[F1][F5]2026-05-06$22.70/sh−9,253$210,029→ 4,034 total - Sale
Common Stock
[F1]2026-05-06$23.71/sh−400$9,484→ 3,634 total - Exercise/Conversion
Stock Option (Right to Buy)
[F1][F6]2026-05-06−62,500→ 87,500 totalExercise: $13.43Exp: 2034-06-24→ Common Stock (62,500 underlying) - Exercise/Conversion
Stock Option (Right to Buy)
[F1][F7]2026-05-06−12,563→ 87,437 totalExercise: $8.04Exp: 2035-01-28→ Common Stock (12,563 underlying)
Footnotes (7)
- [F1]The transactions reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the Reporting Person on November 12, 2025.
- [F2]The reported securities were sold in multiple transactions at prices ranging from $18.50 to $19.495. The Reporting Person undertakes to provide to the Issuer, any security holder of the Issuer or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within such range.
- [F3]The reported securities were sold in multiple transactions at prices ranging from $19.50 to $19.99. The Reporting Person undertakes to provide to the Issuer, any security holder of the Issuer or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within such range.
- [F4]The reported securities were sold in multiple transactions at prices ranging from $20.75 to $21.69. The Reporting Person undertakes to provide to the Issuer, any security holder of the Issuer or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within such range.
- [F5]The reported securities were sold in multiple transactions at prices ranging from $22.15 to $22.88. The Reporting Person undertakes to provide to the Issuer, any security holder of the Issuer or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within such range.
- [F6]Twenty-five percent (25%) of the Option Shares vest on June 24, 2025 and the remainder of the Option Shares will vest in equal monthly installments on the first day of each month thereafter over the following three (3) years, provided that Optionee remains an employee of the Company on each such vesting date.
- [F7]The stock option vests twenty-five percent (25%) on January 28, 2026 and the remainder will vest in equal monthly installments over the following three (3) years, subject to the Reporting Person's continued service on such vesting date.