Atlassian Co-CEOs Adopt New 10b5-1 Trading Plans

Rhea-AI Summary

Atlassian Corporation Plc (NASDAQ: TEAM) co-CEOs Scott Farquhar and Mike Cannon-Brookes adopted new stock trading plans under Rule 10b5-1 to facilitate selling shares for personal asset diversification. Starting in June 2021, they plan to sell up to 2.25 million Class B ordinary shares, converting them into Class A shares beforehand. Together, they currently hold about 113.91 million Class B and 394,936 Class A shares, equating to approximately 45.37% of Atlassian’s total shares and 88.79% of voting power. Remaining shares post-sale would still represent about 43.56% of total shares.

Positive

• Co-CEOs adopting structured trading plans indicates a strategic approach to personal asset management.
• Continued significant ownership post-sale ensures leadership stability and alignment with shareholder interests.

Negative

• The planned sale of up to 2.25 million shares may raise concerns about potential stock price pressure due to increased supply in the market.

Atlassian Corporation Plc (NASDAQ: TEAM), a leading provider of team collaboration and productivity software, today announced that Scott Farquhar and Mike Cannon-Brookes, co-CEOs, co-founders and directors of Atlassian, each adopted a new stock trading plan in February 2021 in accordance with guidelines specified under Rule 10b5-1 of the Securities and Exchange Act of 1934, as amended, and the policies of Atlassian regarding stock transactions.

These pre-arranged trading plans were adopted in order to allow Mr. Farquhar and Mr. Cannon-Brookes to sell a portion of their Atlassian stock over time as part of their long-term strategies for individual asset diversification and liquidity. Using these new trading plans, Mr. Farquhar and Mr. Cannon-Brookes will spread their stock trades out over a period of a year from the time their current trading plans expire in June 2021 to reduce market impact on any given day. All sales of shares under Mr. Farquhar’s and Mr. Cannon-Brookes’ trading plans are subject to volume limitations, pursuant to Rule 144, which limits the amount of shares that can be sold in any three-month period.

In the aggregate, Mr. Farquhar and Mr. Cannon-Brookes currently hold approximately 113.91 million Class B ordinary shares and 394,936 Class A ordinary shares, which represent approximately 45.37% of Atlassian’s outstanding Class B and Class A ordinary shares, taken together, and approximately 88.79% of the voting power. Under the terms of the new trading plans, Mr. Farquhar and Mr. Cannon-Brookes each intends to sell up to approximately 2.25 million Class B ordinary shares (with such shares converting into Class A ordinary shares prior to sale). If Mr. Farquhar and Mr. Cannon-Brookes complete all the planned sales under their current and new trading plans, they would continue to collectively own approximately 109.73 million Class B ordinary shares, which would represent approximately 43.56% of Atlassian’s outstanding Class B and Class A ordinary shares, taken together, and approximately 88.08% of the voting power (assuming no other issuances, repurchases, sales or conversions of Atlassian’s capital stock occur). Each Class B ordinary share is entitled to ten votes and each Class A ordinary share is entitled to one vote.

About Atlassian

Atlassian unleashes the potential of every team. Our team collaboration and productivity software helps teams organize, discuss, and complete shared work. Teams at more than 212,000 customers, across large and small organizations – including Bank of America, Redfin, NASA, Verizon and Dropbox - use Atlassian’s project tracking, content creation and sharing, and service management products to work better together and deliver quality results on time. Learn more about our products, including Jira Software, Confluence, Jira Service Management, Trello, Bitbucket, and Jira Align at https://atlassian.com/.

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FAQ

What is the purpose of Atlassian's co-CEOs' new stock trading plans?

The trading plans were adopted for personal asset diversification and liquidity, allowing them to sell shares over time.

How many shares do Scott Farquhar and Mike Cannon-Brookes currently hold in Atlassian?

Together, they hold approximately 113.91 million Class B and 394,936 Class A shares.

What percentage of voting power do Atlassian's co-CEOs control?

They control approximately 88.79% of Atlassian's voting power.

When will the planned sales of Atlassian shares begin?

The sales will commence after their current trading plans expire in June 2021.

How many shares will be sold under the new trading plans?

Each co-CEO intends to sell up to approximately 2.25 million Class B ordinary shares.