Kalish Matthew 4

What Happened Matthew Kalish, a director of DraftKings Inc. (DKNG), entered into a prepaid variable forward contract on May 15, 2026. Under the agreement he will receive $31,720,935.66 (paid May 18, 2026) in exchange for the obligation to deliver up to 1,912,236 Class A shares on a settlement (maturity) date after May 18, 2029. The filing treats the transaction as a derivative disposition: Kalish pledged 1,912,236 shares as security, retained voting rights during the pledge term, and is required to pay the economic equivalent of dividends to the buyer.

Key Details

• Transaction date reported: May 15, 2026 (cash payment scheduled May 18, 2026; settlement/maturity after May 18, 2029).
• Cash received up front: $31,720,935.66.
• Base Amount (shares pledged/subject to settlement): 1,912,236 Class A shares.
• Price mechanics at settlement (per filing):
  • If Settlement Price ≤ $19.20 (Floor): deliver the full Base Amount.
  • If $19.20 < Settlement Price < $40.00 (Cap): deliver fewer shares per the Floor/Settlement Price ratio.
  • If Settlement Price ≥ $40.00: deliver shares per the contract’s capped formula (see filing).
• Voting rights: retained by Kalish during the pledge; economic dividends are paid to the buyer.
• Filing timeliness: reported on Form 4 dated May 15, 2026 (no late filing indicated).
• Shares owned after transaction: not disclosed in the provided filing excerpt.

Context A prepaid variable forward lets an insider monetize equity now (cash up front) while deferring delivery of shares to a future date with the final share amount tied to the stock price at maturity. This is a derivative transaction (not an open‑market sale) and does not by itself indicate the insider’s view on the stock; it’s commonly used for liquidity or tax/financial planning.