Palisade Bio (PALI) CEO Finley sells shares to cover RSU tax
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
PALISADE BIO, INC. CEO and CFO John David Finley reported routine equity compensation activity, including RSU settlement, warrant exercise, and a related share sale to cover taxes. On July 6–7, 2026, he acquired 335,167 common shares through vested Restricted Stock Units and 133 shares via exercise of a Series 2 warrant at $0.70 per share. He then sold 146,798 common shares at a weighted average price of $2.0664 per share solely to satisfy tax withholding obligations tied to the RSU vesting. After these transactions, he holds 217,555 common shares directly and 51 shares indirectly through FCW Investments, LLC, over which he has sole voting and investment power.
Positive
- None.
Negative
- None.
Insights
Finley’s Form 4 shows routine equity compensation vesting with tax-driven share sales.
The filing indicates John David Finley received PALISADE BIO equity mainly through vesting of Restricted Stock Units and a small warrant exercise. He acquired 335,167 shares from RSUs and 133 shares from a Series 2 warrant, reflecting normal executive compensation mechanics.
The sale of 146,798 shares at a weighted average $2.0664 per share is explicitly described as covering tax withholding obligations from RSU vesting, not a discretionary open-market liquidation. Following these moves, he still directly owns 217,555 shares, plus 51 indirect shares via FCW Investments, LLC.
The RSUs continue to vest over time, with 1/6 vesting on July 6, 2026 and additional portions quarterly over 10 subsequent quarters, contingent on continued service. This pattern points to ongoing equity-based incentives rather than a significant change in his economic exposure.
Insider Trade Summary
Net Seller: 146,798 shares ($303,343)
Net Sell
6 txns
Insider
Finley John David
Role
CEO, CFO
Sold
146,798 shs ($303K)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Series 2 Common Stock Purchase Warrant | 133 | $0.00 | -- |
| Sale | Common Stock | 146,798 | $2.0664 | $303K |
| Exercise | Common Stock | 133 | $0.70 | $93.10 |
| Exercise | Restricted Stock Units | 335,167 | $0.00 | -- |
| Exercise | Common Stock | 335,167 | $0.00 | -- |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
Series 2 Common Stock Purchase Warrant — 0 shares (Direct, null);
Common Stock — 217,555 shares (Direct, null);
Restricted Stock Units — 1,675,833 shares (Direct, null);
Common Stock — 51 shares (Indirect, By FCW Investments, LLC)
Footnotes (1)
- The shares were issued pursuant to settlement of vested Restricted Stock Units ("RSUs") granted on February 9, 2026. Includes 1,899 shares acquired under the Issuer's Employee Stock Purchase Plan on May 20, 2026. In addition, the amount of securities beneficially owned was reduced by 66 shares due to an administrative error in the total reported in the Form 4 filed February 13, 2026. The sale reported in this Form 4 represents shares sold by the Reporting Person to cover tax withholding obligations in connection with the vesting and settlement of RSUs. The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions at prices ranging from $2.045 to $2.09, inclusive. The Reporting Person has provided to the Issuer, and undertakes to provide to the staff of the Securities and Exchange Commission or any security holder of the Issuer, upon request, full information regarding the number of shares sold at each separate price within the range. The Reporting Person is the managing member of FCW Investments, LLC and has the sole investment and voting power over the securities held by this entity. Each RSU represents a contingent right to receive one share of the Issuer's common stock. The RSUs shall vest with respect to 1/6th of the shares on July 6, 2026 and quarterly thereafter over the following 10 quarters, subject to the Reporting Person's continuous service to the Issuer through each such vesting date. As adjusted in accordance with the terms of the Series 2 Common Stock Purchase Warrants following the public offering that closed on October 2, 2025. Reflects adjustments pursuant to the Issuer's 1-for-50 reverse stock split effective November 15, 2022, and the Issuer's 1-for-15 reverse stock split effective April 5, 2024. Represents Series 2 Common Stock Purchase Warrants received as part of the Units purchased by Reporting Person. The Series 2 Warrants became exercisable upon receipt of stockholder approval per Nasdaq rules, which was obtained on October 6, 2022.
Key Figures
Shares sold for tax withholding: 146,798 shares at $2.0664
RSU shares vested: 335,167 shares
Warrant exercise: 133 shares at $0.70
+3 more
6 metrics
Shares sold for tax withholding
146,798 shares at $2.0664
Common stock sale to cover RSU tax obligations
RSU shares vested
335,167 shares
Common stock issued upon RSU settlement on July 6, 2026
Warrant exercise
133 shares at $0.70
Series 2 Common Stock Purchase Warrant exercise
Direct holdings after transactions
217,555 shares
Common stock owned directly by Finley following July 7, 2026
Indirect holdings via FCW Investments, LLC
51 shares
Common stock held indirectly with sole voting and investment power
Remaining RSUs after vesting
1,675,833 RSUs
Restricted Stock Units outstanding after 335,167 vested
Key Terms
Restricted Stock Units, Employee Stock Purchase Plan, Series 2 Common Stock Purchase Warrants, reverse stock split, +1 more
5 terms
Restricted Stock Units financial
"The shares were issued pursuant to settlement of vested Restricted Stock Units ("RSUs") granted on February 9, 2026."
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
Employee Stock Purchase Plan financial
"Includes 1,899 shares acquired under the Issuer's Employee Stock Purchase Plan on May 20, 2026."
An employee stock purchase plan is a company program that lets workers buy shares through small payroll deductions, often at a discount to the market price and after a set offering period. Think of it like a workplace savings plan that turns into ownership: it encourages employees to share in the company’s success and can create predictable buying or selling of stock that investors watch because it affects supply, demand and employee incentives.
Series 2 Common Stock Purchase Warrants financial
"Represents Series 2 Common Stock Purchase Warrants received as part of the Units purchased by Reporting Person."
reverse stock split financial
"Reflects adjustments pursuant to the Issuer's 1-for-50 reverse stock split effective November 15, 2022, and the Issuer's 1-for-15 reverse stock split effective April 5, 2024."
A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.
weighted average price financial
"The price reported in Column 4 is a weighted average price."
Weighted average price is the average price of a security where each trade or component is counted according to its size, so bigger trades pull the average more than smaller ones. Think of it like calculating the average cost of a grocery haul where items you bought more of have greater influence on the final per-item cost. Investors use it to understand the true average price paid or received, judge execution quality, and compare trading performance against market movement.
FAQ
What did PALISADE BIO (PALI) CEO John David Finley report in this Form 4?
John David Finley reported RSU vesting, a small warrant exercise, and a related share sale. He received 335,167 shares from Restricted Stock Units and 133 shares from a Series 2 warrant, then sold 146,798 shares to cover tax withholding obligations tied to the RSU settlement.
What Restricted Stock Unit (RSU) activity did PALISADE BIO (PALI) disclose for its CEO?
The filing shows 335,167 RSUs vested and settled into an equal number of PALISADE BIO common shares. Each RSU represents the right to receive one share. Remaining RSUs vest 1/6 on July 6, 2026, and quarterly over the following 10 quarters, subject to continued service.
Did the PALISADE BIO (PALI) CEO exercise any warrants in this Form 4?
Yes. Finley exercised Series 2 Common Stock Purchase Warrants for 133 PALISADE BIO common shares at an exercise price of $0.70 per share. Following this exercise, his reported balance of these Series 2 warrants decreased to zero, reflecting full use of that small warrant position.
What indirect PALISADE BIO (PALI) holdings does the CEO report through FCW Investments, LLC?
The Form 4 lists 51 PALISADE BIO common shares held indirectly through FCW Investments, LLC. A footnote states Finley is the managing member of this entity and holds sole voting and investment power over the securities, so they are included in his beneficial ownership totals.