SAN DIEGO—Diep Tuan Tu, Chief Development Officer of Skye Bioscience, Inc. (OTC:SKYE), recently sold shares of the company totaling $97,721. According to the SEC filing, the transactions occurred on November 15 and November 18, 2024.
On November 15, Tu sold 85 shares of Skye Bioscience common stock at a price of $5.55 per share. Subsequently, on November 18, an additional 19,489 shares were sold at a weighted average price of $4.99 per share. These sales were executed to cover tax withholding obligations related to the vesting and settlement of performance-based restricted stock units, as noted in the filing.
Following these transactions, Tu retains ownership of 82,259 shares in the company. The sales were not discretionary but were conducted as part of a "sell to cover" arrangement.
In other recent news, Skye Bioscience continues to make significant strides in its ongoing clinical trials for nimacimab, a CB1 inhibitor aimed at treating obesity. The company has reached over 50% enrollment for its Phase 2 CBeyond™ clinical trial, with interim data expected in the second quarter of 2025. In addition, Skye Bioscience has made strategic leadership appointments, including Paul Grayson as the new Chairman of the Board and Dr. Puneet Arora as Chief Medical (TASE:PMCN) Officer, to bolster its governance structures and oversight capabilities. Analyst firms JMP Securities, Piper Sandler, Craig-Hallum, and Oppenheimer have maintained positive ratings on the biopharmaceutical company, reflecting confidence in its prospects. Skye Bioscience has also partnered with Beacon Biosignals to incorporate sleep-related assessments into the trial, highlighting the link between obesity and sleep disorders. These are recent developments in Skye Bioscience's operations.
InvestingPro Insights
The recent insider sale by Skye Bioscience's Chief Development Officer comes amid a challenging period for the company's stock performance. According to InvestingPro data, Skye Bioscience has experienced a significant 63.83% decline in its stock price over the past six months. This downturn is further emphasized by an 18.27% drop in the past week alone, indicating ongoing volatility in the stock's value.
Despite these short-term setbacks, it's worth noting that Skye Bioscience has shown remarkable resilience over a longer timeframe, with a 156.43% price total return over the past year. This stark contrast between short-term declines and long-term gains underscores the stock's volatile nature, which is highlighted in one of the InvestingPro Tips.
InvestingPro Tips also reveal that Skye Bioscience is currently not profitable, with an adjusted operating income of -$23.62 million for the last twelve months as of Q3 2024. This aligns with another tip suggesting that analysts do not anticipate the company to be profitable this year. These financial challenges may explain the recent insider sale to cover tax obligations, as the company may be conserving cash.
On a positive note, InvestingPro indicates that Skye Bioscience operates with a moderate level of debt and its liquid assets exceed short-term obligations, which could provide some financial flexibility as the company navigates its current challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Skye Bioscience, providing a deeper understanding of the company's financial health and market position.
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