AeroVironment, Inc. (NASDAQ: AVAV) chairman of the board, Timothy E. Conver, as trustee of The Conver Family Trust, has established a pre-arranged stock trading plan to sell a portion of company stock held by the trust over a specific period of time, the company said.
The stock trading plan is part of a long-term strategy for asset diversification and liquidity and was adopted in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934 and AeroVironment´s policies with respect to employee stock transactions.
Rule 10b5-1 allows corporate officers and directors to adopt written, pre-arranged stock trading plans when they do not have material, non-public information. Using these plans, insiders can diversify their investment portfolios, can spread stock trades out over an extended period of time to reduce market impact, and can avoid concerns about whether they had material, non-public information when they sold their stock.
Under the Rule 10b5-1 Plan, the trust may sell up to 190,000 shares over a period of approximately twelve months.
California-based AeroVironment is a global company in unmanned aircraft systems, tactical missile systems, and electric vehicle charging and test systems, and serves militaries, government agencies, businesses, and consumers.