The Rhythm Biosciences Ltd (ASX: RHY) share price is in the green during morning trade on Friday. This comes after the ASX All Ords company announced that its executive chair has just offloaded $6.5 million worth of his shares.
At the time of writing, the medical device company's shares are trading at $1.375, up 1.85%.
Rhythm chair sells down his stake
Investors are shrugging off the company's latest news, sending the Rhythm share price higher today.
According to Rhythm's release, its executive chair Otto Buttula offloaded $6.5 million worth of shares to a domestic institutional fund manager.
While the buyer's name wasn't disclosed, the on-market transaction involved 5,000 Rhythm shares sold at $1.30 apiece.
The exclusive share sale came from the Newfound superannuation fund in which Buttula is one of three members.
Rhythm stated that the primary purpose of the sale is to enhance portfolio diversification and better meet trustee, accounting, and auditor advice.
Prior to the sale, the superannuation fund's holding in Rhythm represented 95.9% of the total assets of the fund and 98.6% of its ASX listed company exposures.
However, now with the sale completed, the superannuation fund holds roughly 6.1 million Rhythm shares and about 2.1 million options at $1.80 each, expiring July 2024.
This is the first time Buttula has reduced his holdings in the ASX All Ords company since his appointment as chair in October 2019.
He also confirmed there is no intention to sell any further shares for the foreseeable future.
What did the chair of this ASX All Ords company say?
Commenting on the sale, Buttula said:
Whilst there is never a perfect time to reduce exposure to a company that you are immensely proud of being a part of, in this case, the numbers speak for themselves and a holding above 95% in one company exposure, particularly in a retirement fund, with two other members, was problematic and not prudent.
Despite the sale, my associated interests continue to maintain the largest shareholding in the company, maintaining a holding of 10.8% (ex-options). Importantly, I am also delighted to welcome another leading fund manager to the RHY register. The institutional fund manager is one of Australia's most successful and has conducted a period of due diligence on the prospects of the company.
Rhythm share price snapshot
Over the past 12 months, the Rhythm share price has gained 37% but fallen 11% year-to-date.
The company's shares reached a 2022 low of $1.01 in June before climbing in the weeks thereafter.
At today's prices, this ASX All Ords share has a market capitalisation of approximately $292.24 million with around 215.67 million shares on issue.
