What is the estimated dilution impact on existing shareholders from the 181,450 share option grant?

Answer

The 181,450‑share non‑qualified stock‑option grant will increase the number of Viridian Therapeutics’ outstanding shares, which in turn dilutes the ownership percentage of existing shareholders. The size of that dilution can be expressed as a percentage of the company’s current share base (or of the fully‑diluted share base, if you also include other outstanding options, warrants, convertible securities, etc.).

Below is a step‑by‑step outline of how the dilution impact is normally calculated, what the 181,450‑share grant means in practice, and what additional data you would need to produce a precise figure for Viridian Therapeutics (ticker VRDN).

1. What “dilution” actually means

When a new option grant is added, the incremental dilution is the proportion of the new shares relative to the existing share pool (or the fully‑diluted pool, if you want a “worst‑case” view).

2. How to calculate the dilution from a single option grant

The basic formula is:

[
\text{Dilution \%} = \frac{\text{New shares granted}}{\text{Current shares outstanding} + \text{New shares granted}} \times 100
]

If you want the incremental dilution (i.e., the extra percentage that existing shareholders lose just because of this grant), you can also express it as:

[
\text{Incremental dilution \%} = \frac{\text{New shares granted}}{\text{Current shares outstanding}} \times 100
]

Key inputs needed

3. Applying the formula to Viridian Therapeutics

Step 1 – Find the current share count

The press release does not disclose Viridian’s total shares outstanding. For a public company listed on Nasdaq, that figure is typically reported in:

• The “Capital Stock” table in the most recent Form 10‑K (annual report) or Form 10‑Q (quarterly report).
  
• The “Shareholder Information” section of the proxy statement filed for the upcoming annual meeting.
  

Step 2 – Plug the numbers into the formula

Interpretation – In these illustrative examples, the grant would dilute existing shareholders by roughly 1½ % to 2 % of the total share pool. The exact percentage will shift up or down depending on the actual share count.

4. Why the exact dilution figure matters

5. How to obtain the precise dilution estimate for Viridian Therapeutics

1. Locate the latest share‑count data

   • Go to the SEC’s EDGAR database and pull the most recent Form 10‑K (or 10‑Q if the 10‑K is older than a few months).
     
   • In the “Capital Stock” table, note the line titled “Common Stock – Shares Outstanding” (basic) and the line titled “Common Stock – Shares Outstanding – Fully Diluted.”
     

2. Add the new grant

   • Basic dilution: Add 181,450 to the basic share count.
     
   • Fully‑diluted dilution: Add 181,450 to the fully‑diluted share count (unless the new options are already included in the “in‑the‑money” pool; most companies treat a fresh grant as additional dilution).
     

3. Run the calculation using the formulas above.

4. Optional – Adjust for “exercise price”

   • If the options are granted at a strike price that is above the current market price, some analysts treat them as “non‑dilutive” until the market price exceeds the strike price.
     
   • In the press release, the options are described as “non‑qualified stock options” with no strike price disclosed. If the strike is below the current trading price, the options are in‑the‑money and will almost certainly be exercised, making the dilution realistic.
     

6. Bottom‑line answer (given the information you provided)

• The press release tells us the size of the grant (181,450 shares) but does not disclose Viridian Therapeutics’ current share count.
  
• Without that share‑count, we cannot compute a precise dilution percentage.
  
• However, using a typical range for a small‑cap Nasdaq‑listed biotech (e.g., 8 – 12 million shares outstanding), the grant would represent roughly 1½ % to 2 % of the total share pool, which is a modest but non‑trivial dilution for existing shareholders.
  

To obtain the exact dilution impact, you would need to retrieve Viridian’s current basic and fully‑diluted share counts from its latest SEC filing and apply the simple dilution formula shown above.

7. Quick “cheat‑sheet” for you (if you locate the share count)

| If Viridian’s basic shares = X | Dilution % (basic) = 181,450 ÷ (X + 181,450) × 100 |
| If Viridian’s fully‑diluted shares = Y | Dilution % (fully‑diluted) = 181,450 ÷ (Y + 181,450) × 100 |

Plug in the actual X or Y you find in the SEC filing, and you’ll have the exact answer.

In summary: The 181,450‑share option grant will increase the total share count and therefore dilute existing shareholders. The magnitude of that dilution depends on Viridian’s current share base; with a typical biotech share count, the dilution is in the low‑single‑digit percentage range (≈1½ %–2 %). To produce a precise figure, retrieve the latest basic and fully‑diluted share numbers from the company’s SEC filings and apply the straightforward dilution formula.