Maha Katabi - Jul 1, 2021 Form 4 Insider Report for Aerovate Therapeutics, Inc. (AVTE)

Role: Director, 10%+ Owner
Signature: /s/ George A. Eldridge, Attorney-in-Fact
Stock symbol: AVTE
Transactions as of: Jul 1, 2021
Transactions value $: $5,027,488
Form type: 4
Date filed: 7/6/2021, 04:27 PM
Previous filing: Jun 29, 2021
Next filing: Jan 5, 2022

Transactions Table

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Ownership	Footnotes
transaction	AVTE	Common Stock	Conversion of derivative security		+3.4M			3.4M	Jul 2, 2021	By Sofinnova Venture Partners X, L.P.	F1, F2
transaction	AVTE	Common Stock	Purchase	$5M	+357K	+10.5%	$14.00	3.76M	Jul 2, 2021	By Sofinnova Venture Partners X, L.P.	F2

Derivative Securities (e.g., puts, calls, warrants, options, convertible securities)

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Underlying Class	Amount	Exercise Price	Ownership	Footnotes
transaction	AVTE	Stock Option (Right to Buy)	Award	$27.5K	+2.47K		$11.15	2.47K	Jul 1, 2021	Common Stock	2.47K	$19.41	Direct	F3
transaction	AVTE	Series A Preferred Stock	Conversion of derivative security		-10.6M	-100%		0	Jul 2, 2021	Common Stock	3.4M		By Sofinnova Venture Parnters X, L.P.	F1, F2

* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Explanation of Responses:

Id	Content
F1	Each share of Series A Preferred Stock was convertible at any time at the holder's election and automatically upon the closing of the Issuer's initial public offering. The Preferred Stock converted into Common Stock on a one-for-3.1060103 basis upon the closing of the Issuer's initial public offering without payment or additional consideration. The Preferred Stock had no expiration date.
F2	The shares are held directly by Sofinnova Venture Partners X, L.P. ("SVP X"). Sofinnova Management X, L.L.C. ("SM X") is the general partner of SVP X and may be deemed to have sole voting, investment and dispositive power with respect to the shares held by SVP X. James I. Healy and Maha Katabi are the managing members of SM X and may be deemed to have shared voting, investment and dispositive power with respect to the shares held by SVP X. The Reporting Person disclaims beneficial ownership of such securities, except to the extent of his or her proportionate pecuniary interest therein.
F3	This option was awarded in lieu of cash compensation pursuant to the Issuer's Non-Employee Director Compensation Policy. The shares underlying such option shall vest and become exercisable in two equal installments, with the first installment vesting on September 30, 2021 and the second installment vesting on December 31, 2021.