Listed AV networking business Audinate is on a tear, and chief executive and co-founder Aidan Williams is cashing out.

He sold 51,702 shares, or 2.6 per cent of his $26 million holding, on August 28, securing $706,249.32 at $13.55 a pop. This cash, he told us, would meet “upcoming tax obligations”.

The most intriguing aspect of Williams’ sale, however, is its timing. It was disclosed on September 6 (two days late in what the company said was an “administrative oversight”). This was the day before Audinate announced a $50 million, fully underwritten capital raise at $13 a share.

Audinate CEO Aidan Williams sold shares to meet upcoming tax obligations.  

As you’d expect, this has suppressed Audinate’s share price, which fell 9.7 per cent on the day the raise was announced and hasn’t reached its pre-capital-raise level since. By selling nine trading days before (rather than after) the capital raise, Williams has, at the margin, maximised his reward, to the tune of nearly $20,000 at Thursday’s $13.20 closing price.

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.

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