Worth considering that the process of acquiring earned performance rights and then selling these shares on market (so back to back) is different to selling shares that present as the shareholding in the Company. You can argue that performance rights are part of a CEO's Salary package. There is also precedent here where he has previously done this directly after the release of Results. In seem to recall in one instance, it was directly after an AGM.

My view nothing to see here. The fact that the share price has gravitated to the Placement / SPP offer is very common these days. The Placement was heavily over subscribed, so not a surprise that the SP lifted to $13.62 yesterday. Back to $13.20 today.

RobW

“Knowledge of an upcoming capital raise could be considered material non-public information. Williams said he was given permission to trade in accordance with company policy, and that the capital raise was decided upon by the board sometime after his trade.”

I think this is appalling. While no doubt the formal board minuted decision took place as reported, as you say @StuMas63, the CEO, CFO and Chairman as a minimum, if not the entire Board, would have known about the cap raise well in advance. This is not a decision taken lightly nor in haste.

By pedalling this message and relying on the formal milestone of when the decision is recorded, he is treating the audience (including shareholders) with disrespect. I don’t know why he would do this.

It really brings the integrity of the management and board into question.

Why not tell the truth? Is it that to tell the truth is to admit to transacting while In possession of material, non-public information?

There is no question in my mind that knowledge of an upcoming capital raise is material non-public information. I believe the Chairman has messed up here.

@RobW I don’t begrudge any executive selling their hard-earned shares. I’ve been in the same position myself and offloaded as soon as it was legal and permissible to do so.

However, I believe the mechanism of acquiring the security is irrelevant. This issue is simply one of trading in a security while in possession of material non-public information.

Its a red line and it shouldn’t be crossed.

@mikebrisy Accept your argument, but believe the disposal of the Asset is relevant. Whilst we are not privvy to the Conditions attached to Audinate's Performance Rights, I would suggest that the process is most likely subjected to a different Tax treatment, maybe with pre-arranged Timing conditions agreed with the ATO. Who knows ?

Anyhow, I dont believe this has contributed to the share price fall and as a long term hold, will make little to zero difference with the passage of time.

RobW

I'm confused by the selling for tax obligation reasons. Something doesn't sound right while price sensitive actions are happening behind the scenes..

Doesn't Aidan earn enough as a CEO?

Again, like the business but it's a pass when the CEO behaves with little empathy.

I know other shareholders will think differently and in time I will be proven wrong with Audinate. But I'm happy with that.

I’m not familiar with Audinate so I can’t comment on the company or the CEO’s sales. But commenting on the idea of an insider selling for “tax reasons” in general. The phenomenon seems to be happening more frequently across the ASX, It’s my belief that it’s a throw away excuse for taking money out of the market without needing to offer an explanation that may be perceived as favourable or unfavourable to share holders.

Good to see an article from the AFR for this even if ASIC will do nothing.

https://www.afr.com/rear-window/audinate-chief-sold-shares-before-capital-raise-20230914-p5e4ma

Might force Aidan to think twice before selling

Just looking at this, I’m not able to judge one way or the other what is right or wrong, but it reminds me how sensitive share price can be in the small cap end of the market, especially with some of these stocks with low liquidity / small market caps.

It got me thinking and I had a look at a few of the other recent things that got peoples heckles up on the forum (eg. 3DP capital raise after share price ripped, 4DX share price jump ahead of capital raise). It was a good reminder to always look at volumes as well as share price and reminded me to trickle in or out of positions in this part of the market. (I use CMC Markets with $0 brokerage on ASX trades < $1000 per stock per day)

DISC: AD8 not held, 3DP and 4DX held in Strawman and IRL (I seem to like stocks with numbers in their tickers … if the ASX allowed emoji tickers I’d probably go for them as well ❤️????????????)

Sorry just realised my post today contained the AFR article in the original post/straw.

Anyway, maybe having the news in the AFR may influence the CEO to perhaps make better business decisions for shareholders.