Fulgent Genetics (NASDAQ: FLGT) CEO pays $10.7M to cancel share forward
Rhea-AI Filing Summary
Fulgent Genetics, Inc. director and CEO Ming Hsieh, a more than ten percent owner, restructured a prior derivative arrangement tied to company stock. A trust associated with him had entered a prepaid variable forward contract in 2023 covering up to 750,000 shares of common stock.
On March 9, 2026, The Ming Hsieh Trust cancelled this agreement for all 750,000 shares and paid the counterparty an aggregate of $10,708,875. After this payment, those 750,000 shares are no longer pledged to the bank and remain held by entities associated with Hsieh.
Following these actions, Hsieh holds 900,634 common shares directly, and additional common shares indirectly, including 7,895,115 by trust, 220,816 by trust, 1,000 in a Uniform Transfers to Minors Act account, and 1,000 held by an immediate family member.
Positive
- None.
Negative
- None.
Insights
CEO unwinds a large prepaid forward, keeps economic exposure.
The filing shows a restructuring, not an open-market trade. A trust associated with Ming Hsieh cancelled a prepaid variable forward on up to 750,000 Fulgent Genetics shares by paying the bank $10,708,875, removing a pledge over those shares.
No shares were reported as bought or sold in the market, and net buy/sell activity is neutral in the transaction summary. Hsieh continues to hold a substantial equity position, with 900,634 shares directly and several million shares indirectly through trusts and family accounts as of March 9, 2026.
This kind of derivative unwind mainly affects how the position is financed and encumbered, rather than changing basic ownership. It may matter for understanding potential overhang from pledged shares, but it does not, by itself, alter the company’s operating outlook.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Other | Forward sale contract (obligation to sell) | 750,000 | $0.00 | -- |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
| holding | Common Stock | -- | -- | -- |
Footnotes (1)
- Securities held by The Ming Hsieh Trust (the "Hsieh Trust"). Mr. Hsieh is the trustee of the Hsieh Trust and possesses the sole voting and dispositive power with respect to securities held by the Hsieh Trust. Securities held by the Dynasty Trust. Mr. Hsieh is the grantor of the Dynasty Trust and he and his spouse, Eva Hsieh, and Jian Xie serve on the investment committee of the Dynasty Trust. Mr. Hsieh disclaims any beneficial interest except with respect to any pecuniary interest therein. Shares held in a Uniform Transfers to Minor Act account for which Ming Hsieh acts as custodian and possesses the sole voting and dispositive power. Shares, which were previously held in a Uniform Transfers to Minor Act account, now held by an immediate family member residing in the same household as Ming Hsieh. Previously, on August 21, 2023, the Hsieh Trust entered into a prepaid variable forward agreement (the "2023 Agreement") with an unaffiliated bank (the "Bank"). The 2023 Agreement obligated the Hsieh Trust to deliver up to 750,000 shares of the issuer's common stock, $0.0001 par value per share ("Common Stock") (or, at the Hsieh Trust's election, an equivalent amount of cash) to settle the 2023 Agreement. On March 9, 2026, the Hsieh Trust elected to cancel the 2023 Agreement with respect to all 750,000 shares. In connection with the cancellation, the Hsieh Trust paid an aggregate of $10,708,875 to the Bank. Following the payment and cancellation described above, the 750,000 shares held by the reporting person that were previously subject to the prepaid forward contract are no longer pledged to the Bank.
