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

Rhea-AI Summary

Alector, Inc. (Nasdaq: ALEC), a clinical-stage biotechnology firm, announced on November 1, 2022, the grant of stock options and restricted stock units (RSUs) to five new employees under its 2022 Inducement Equity Incentive Plan. A total of 202,080 stock options and 101,039 RSUs were awarded, with an exercise price of $9.29 per share. The options vest over four years, while RSUs vest over three years. This grant aligns with Nasdaq Listing Rule 5635(c)(4) as a material inducement for employment, reflecting Alector's commitment to enhancing its workforce in immuno-neurology and immuno-oncology.

Positive

• Granting of stock options and RSUs may enhance employee retention and motivation.
• The exercise price of $9.29 is set at a competitive level, which could benefit the company in retaining talent.

Negative

• None.

SOUTH SAN FRANCISCO, Calif., Nov. 03, 2022 (GLOBE NEWSWIRE) -- Alector, Inc. (Nasdaq: ALEC), a clinical-stage biotechnology company pioneering immuno-neurology and innate immuno-oncology, today announced that on November 1, 2022, the compensation committee of Alector’s board of directors granted five  new employees options to purchase an aggregate of 202,080 shares of the company’s common stock and restricted stock units (RSUs) for an aggregate of 101,039 shares of the company’s common stock. These awards are made under Alector’s 2022 Inducement Equity Incentive Plan (the “Plan”).

The stock options each have an exercise price of $9.29 per share, equal to the closing price of Alector’s common stock on November 1, 2022. The stock options each have a ten-year term and vest over a period of four years with one forty-eighth of the shares vesting each month. The RSUs vest over a period of three years with one-twelfth of the shares vesting quarterly.

The above-described awards were each granted as an inducement material to the employees entering into employment with the company in accordance with Nasdaq Listing Rule 5635(c)(4) and were granted pursuant to the terms of the Plan.

About Alector

Alector is a clinical-stage biotechnology company pioneering immuno-neurology, a novel therapeutic approach for the treatment of neurodegenerative diseases, and innate immuno-oncology. Immuno-neurology targets immune dysfunction as a root cause of multiple pathologies that are drivers of degenerative brain disorders. Alector has discovered and is developing a broad portfolio of innate immune system programs, designed to functionally repair genetic mutations that cause dysfunction of the brain’s immune system and enable rejuvenated immune cells to counteract emerging brain pathologies. Alector’s immuno-neurology product candidates are supported by biomarkers and target genetically defined patient populations in frontotemporal dementia and Alzheimer’s disease. This scientific approach is also the basis for the company’s immuno-oncology programs. Alector is headquartered in South San Francisco, California. For additional information, please visit www.alector.com.

Alector Contacts:

1AB (media)
Dan Budwick
973-271-6085
dan@1abmedia.com

Argot Partners (investors)
Carrie McKim
Argot Partners
212.600.1902
alector@argotpartners.com

Source: Alector, Inc.

FAQ

What was announced by Alector on November 1, 2022?

Alector announced the grant of stock options and restricted stock units (RSUs) to five new employees under its 2022 Inducement Equity Incentive Plan.

What is the exercise price of Alector's stock options granted in November 2022?

The exercise price of the stock options is $9.29 per share.

How many shares of stock options were granted to Alector employees in November 2022?

Alector granted a total of 202,080 stock options to five new employees.

What is the vesting period for the RSUs granted by Alector?

The RSUs vest over a period of three years, with one-twelfth of the shares vesting quarterly.