Adicet Bio Reports Inducement Grants under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Adicet Bio, a clinical-stage biotechnology company, announced inducement grants under Nasdaq Listing Rule 5635(c)(4) on May 31, 2024. The company hired two new employees in May 2024 and granted them non-qualified stock options to purchase a total of 44,800 shares of common stock at $1.45 per share. The stock options will vest over four years, with one-fourth vesting after one year and the remaining three-fourths vesting in equal monthly installments over the next three years. These awards were granted outside the company’s stockholder-approved equity incentive plans under the 2022 Inducement Plan, authorized by the compensation committee comprised of independent directors.

Positive

• Adicet Bio hired two new employees, potentially bringing in fresh talent and expertise.
• Granted 44,800 non-qualified stock options, indicating potential growth and employee retention incentives.
• Stock options priced at $1.45 per share, aligning with the closing price, suggesting no discounting or overvaluation.
• Stock options vest over four years, promoting long-term employment and alignment with company goals.

Negative

• The grants were made outside the stockholder-approved equity plans, which may raise governance questions.
• The inducement awards could lead to future dilution of existing shares, impacting current shareholders’ value.

REDWOOD CITY, Calif. & BOSTON--(BUSINESS WIRE)-- Adicet Bio, Inc. (Nasdaq: ACET), a clinical stage biotechnology company discovering and developing allogeneic gamma delta T cell therapies for autoimmune diseases and cancer, today announced it granted inducement awards on May 31, 2024.

Two individuals were hired by Adicet in May 2024. In the aggregate, Adicet granted new hires non-qualified stock options to purchase 44,800 shares of Adicet’s common stock with an exercise price of $1.45 per share, the closing price of Adicet’s common stock as reported by Nasdaq on May 31, 2024. One-fourth of the shares underlying each employee’s option will vest on the one-year anniversary of each recipient’s start date and thereafter the remaining three-fourths of the shares underlying each employee’s option will vest in thirty-six substantially equal monthly installments, such that the shares underlying the option granted to each employee will be fully vested on the fourth anniversary of the recipient’s start date, in each case, subject to each such employee’s continued employment with Adicet on such vesting dates.

All of the above-described awards were granted outside of Adicet’s stockholder-approved equity incentive plans pursuant to Adicet’s 2022 Inducement Plan (the Inducement Plan), which was adopted by the board of directors in January 2022 and subsequently amended in January 2023. The awards were authorized by the compensation committee of the board of directors, which is comprised solely of independent directors, as a material inducement to the employees entering into employment with Adicet in accordance with Nasdaq Listing Rule 5635(c)(4).

About Adicet Bio, Inc.

Adicet Bio, Inc. is a clinical stage biotechnology company discovering and developing allogeneic gamma delta T cell therapies for autoimmune diseases and cancer. Adicet is advancing a pipeline of “off-the-shelf” gamma delta T cells, engineered with chimeric antigen receptors (CARs), to facilitate durable activity in patients. For more information, please visit our website at https://www.adicetbio.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240531533860/en/

Adicet Bio, Inc.

Investor and Media Contacts

Anne Bowdidge

abowdidge@adicetbio.com

Janhavi Mohite

Precision AQ

212-362-1200

janhavi.mohite@precisionaq.com

Source: Adicet Bio, Inc.

FAQ

What did Adicet Bio announce on May 31, 2024?

Adicet Bio announced inducement grants under Nasdaq Listing Rule 5635(c)(4) for two new employees.

What is the stock symbol for Adicet Bio?

The stock symbol for Adicet Bio is ACET.

How many shares of common stock were granted as inducement awards by Adicet Bio?

Adicet Bio granted non-qualified stock options to purchase 44,800 shares of common stock.

What was the exercise price for the stock options granted by Adicet Bio?

The exercise price for the stock options was $1.45 per share.

When will the stock options granted by Adicet Bio vest?

The stock options will vest over four years, with one-fourth vesting after one year and the remaining three-fourths vesting in equal monthly installments over the next three years.