Skye Bioscience, Inc. Announces Option Repricing and Appointment of New Chief Financial Officer

Key Highlights

• Stock Option Repricing for Employees and Executives
• Appointment of John P. Sharp as Chief Financial Officer
• Comprehensive Consulting Agreement with Lohman & Associates
• Potential Impact on Employee Retention and Executive Compensation

Option Repricing Details

On March 31, 2026, Skye Bioscience’s Board of Directors, upon recommendation from its Compensation Committee, approved a significant stock option repricing for all outstanding stock options held by current full-time employees, including executive officers. The repricing applies to options granted prior to December 31, 2025 under both the Skye Bioscience, Inc. Amended and Restated Omnibus Incentive Plan and the 2024 Inducement Equity Incentive Plan.

• The total number of shares underlying the repriced options is 2,420,978.
• The original exercise prices of these options ranged from \$1.055 to \$14.56 per share.
• Repriced options include those held by Punit Dhillon (President & CEO), who has 1,103,959 repriced options with original exercise prices between \$2.89 and \$14.56.
• Options held by Tuan Diep (COO) are also included.

The Board stated that this repricing is intended to incentivize and retain key employees and executives without increasing dilution (by granting more equity) or causing additional cash expenditures. This may be viewed positively for employee morale and long-term retention, though investors should monitor dilution risk and potential changes in executive compensation philosophy.

Appointment of New Chief Financial Officer

Also on March 31, 2026, Skye Bioscience’s Board appointed John P. Sharp as the new Chief Financial Officer (CFO), effective immediately. Mr. Sharp will serve as both principal financial officer and principal accounting officer.

• Mr. Sharp is a seasoned finance executive with more than 30 years of experience in financial and business planning.
• He was engaged through a Master Services Agreement with Lohman & Associates, Inc., under which he will provide comprehensive finance and accounting consulting services.
• The consulting agreement specifies that services will be performed primarily by Mr. Sharp, who cannot be replaced or have his involvement materially reduced without Skye Bioscience’s prior written consent.
• The agreement outlines recurring and ad-hoc services including SEC reporting, public company compliance, SOX and internal controls support, investor relations, capital markets, operational finance, and risk management.
• Standard consulting rates for Senior Director (the role level for Mr. Sharp) is \$455 per hour, with the possibility of separate stock-based compensation for Mr. Sharp that does not offset the consulting fees.

Notably, the agreement clarifies that neither Lohman & Associates nor Mr. Sharp will be deemed an officer, director, or employee of Skye Bioscience unless separately approved by the Board. Mr. Sharp will comply with company policies and cannot bind the company or sign SEC filings unless specifically authorized.

Potential Shareholder Implications

• Option Repricing: May affect share value due to potential dilution if repriced options are exercised at lower prices. However, it could improve employee retention and morale, potentially supporting company performance.
• Executive Compensation: Repricing underwater options for the CEO and COO may attract scrutiny from investors concerned about alignment of executive incentives and shareholder interests.
• Leadership Change: Appointment of an experienced CFO under a consulting agreement may strengthen financial oversight, SEC compliance, and investor communications, which are critical for a public biotech company.
• Consulting Agreement: The structure allows flexibility and access to high-level finance expertise without a full-time executive hire, but investors should monitor ongoing costs and effectiveness.

Other Disclosures

• No written communications, soliciting material, or pre-commencement tender offers were disclosed as part of this 8-K filing.
• Skye Bioscience is not classified as an emerging growth company under SEC rules.
• No related party transactions or family relationships were reported with respect to Mr. Sharp’s appointment.

Conclusion

The combination of repricing employee stock options and the appointment of a new CFO through a consulting arrangement represents a significant shift in compensation and leadership strategy for Skye Bioscience, Inc. These developments may be price sensitive, particularly if investors view the repricing as dilutive or the CFO appointment as strengthening the company’s financial oversight and reporting functions. Shareholders should monitor subsequent filings for further details on the impact of these changes.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult financial professionals before making investment decisions. The information provided is based on official company filings as of March 31, 2026 and may be subject to change.

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