VARKI PAUL 4

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.