Simulations Plus CEO gets cash rights on 50K options
Merger terms provide cash settlement only for options with exercise prices below the $18.50 per-share consideration.
Sentiment and the balance of points
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Form Type
4
Rhea-AI Filing Summary
Simulations Plus, Inc. CEO Shawn Oconnor reported the disposition to the issuer of seven stock-option tranches on October 6, 2026, under merger terms. The reported options covered 50,000 shares at a $16.02 exercise price; the other six tranches had exercise prices of $23.75, $36.11, $59.97, $43.91, $39.98 and $33.29. The merger consideration was $18.50 per share: the $16.02 options converted into a right to receive cash based on the excess of consideration over exercise price, while options at or above $18.50 were canceled without payment.
Insider Trade Summary
Disposition: 247,500 shares
Disposition
7 txns
Insider
OCONNOR SHAWN
Role
Chief Executive Officer
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Disposition | Stock Options (Right to Buy) F1 | 50,000 | -- | -- |
| Disposition | Stock Options (Right to Buy) F1, F2 | 20,000 | -- | -- |
| Disposition | Stock Options (Right to Buy) F1, F2 | 20,000 | -- | -- |
| Disposition | Stock Options (Right to Buy) F1, F2 | 25,000 | -- | -- |
| Disposition | Stock Options (Right to Buy) F1, F2 | 50,000 | -- | -- |
| Disposition | Stock Options (Right to Buy) F1, F2 | 50,000 | -- | -- |
| Disposition | Stock Options (Right to Buy) F1, F2 | 32,500 | -- | -- |
Holdings After Transaction:
Stock Options (Right to Buy) — 0 contracts (Direct)
Footnotes (2)
- F1. This Form 4 reports securities disposed of pursuant to the terms of the Agreement and Plan of Merger, dated as of June 15, 2026 (the "Merger Agreement"). Pursuant to the Merger Agreement, effective as of or immediately prior to the Effective Time, each option to purchase shares of Company Common Stock (each, a "Company Option") that was outstanding immediately prior to the Effective Time automatically vested and was canceled and converted into the right to receive an amount in cash, without interest, equal to (i) the number of shares of Company Common Stock subject to such Company Option immediately prior to the Effective Time multiplied by (ii) the excess, if any, of the Merger Consideration over the applicable exercise price per share of Company Common Stock subject to such Company Option.
- F2. At the effective time of the Merger (the "Effective Time"), each share of common stock of the Issuer ("Company Common Stock") issued and outstanding immediately prior to the Effective Time (other than certain excluded shares specified in the Merger Agreement) was automatically converted into the right to receive $18.50 in cash, without interest (the "Merger Consideration"). Any such Company Option with a per share exercise price that was equal to or greater than the Merger Consideration was canceled by virtue of the Merger without any payment to the reporting person.
Key Figures
Options disposed to issuer: 50,000 options
Options disposed to issuer: 20,000 options
Options disposed to issuer: 20,000 options
+5 more
8 metrics
Options disposed to issuer
50,000 options
Underlying common shares: 50,000; exercise price $16.02; transaction date October 6, 2026.
Options disposed to issuer
20,000 options
Underlying common shares: 20,000; exercise price $23.75; transaction date October 6, 2026.
Options disposed to issuer
20,000 options
Underlying common shares: 20,000; exercise price $36.11; transaction date October 6, 2026.
Options disposed to issuer
25,000 options
Underlying common shares: 25,000; exercise price $59.97; transaction date October 6, 2026.
Options disposed to issuer
50,000 options
Underlying common shares: 50,000; exercise price $43.91; transaction date October 6, 2026.
Options disposed to issuer
50,000 options
Underlying common shares: 50,000; exercise price $39.98; transaction date October 6, 2026.
Options disposed to issuer
32,500 options
Underlying common shares: 32,500; exercise price $33.29; transaction date October 6, 2026.
Merger consideration
$18.50 per share
Cash consideration for each eligible share under the merger terms.
Key Terms
Company Option, Merger Consideration, Effective Time
3 terms
Company Option financial
"each option to purchase shares of Company Common Stock (each, a "Company Option")"
Merger Consideration financial
"the "Merger Consideration""
Merger consideration is the total payment a company or buyer offers to shareholders of a target company in exchange for combining the two businesses, and can include cash, shares in the surviving company, debt assumption, or a mix of these. Investors care because the form and amount affect the deal’s value, tax consequences, immediate cash received versus future ownership, and the risk and upside of holding new shares — similar to choosing between cash now or stock that could grow later.
Effective Time regulatory
"At the effective time of the Merger (the "Effective Time")"
The exact clock time when a regulatory filing, approval, or corporate action formally becomes legally active; from that moment the change is binding and can be acted on. Investors care because the effective time marks when ownership, rights, trading rules, or new securities take effect — like a light switch turning on a contract or transaction — which determines when risks, benefits and market reactions begin.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How were Shawn Oconnor's SLP options treated in the merger?
At the merger’s $18.50 per-share consideration, options with exercise prices below that amount were converted into a cash right equal to the underlying share count multiplied by the excess of consideration over exercise price. Oconnor’s 50,000 options at $16.02 fell below the threshold; options at or above $18.50 were canceled without payment.
AI-generated analysis. How Rhea-AI works. Not financial advice.
