Anika Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Anika Therapeutics announced inducement grants on June 3, 2024, including non-statutory stock options for 96,525 shares at an exercise price of $29.35 per share and restricted stock units (RSUs) for 38,520 shares. These grants were given to Stephen Griffin, the newly appointed Executive VP, CFO, and Treasurer. The stock options and RSUs will vest over three years, contingent on continuous service. The options expire in ten years unless terminated earlier. The grants were issued under Anika's 2021 Inducement Plan, complying with Nasdaq Listing Rule 5635(c)(4), and did not require stockholder approval.

Positive

• Inducement grants reflect strategic investment in executive talent, potentially enhancing leadership.
• Stock options set at a 10% premium to closing price, indicating confidence in future stock performance.
• Vesting schedule promotes long-term commitment and stability within the executive team.
• Grants align with Nasdaq Listing Rule 5635(c)(4), ensuring regulatory compliance.

Negative

• The grants dilute existing shareholders’ equity as new shares are issued.
• No immediate financial benefit disclosed; positive impact depends on future company performance.
• Stock options and RSUs provide value only if the stock price appreciates, introducing uncertainty.

BEDFORD, Mass., June 07, 2024 (GLOBE NEWSWIRE) -- Anika Therapeutics, Inc. (NASDAQ: ANIK), a global joint preservation company in early intervention orthopedics, today announced that on June 3, 2024, Anika granted: (i) non-statutory stock options (“Options”) covering 96,525 shares of common stock at a per share exercise price of $29.35, which equaled 110% of the closing price of common stock on the Nasdaq Global Select Market (“Closing Price”) on the grant date, and (ii) restricted stock units (“RSUs”) covering 38,520 shares of common stock, to Stephen Griffin, the Company’s recently appointed Executive Vice President, Chief Financial Officer and Treasurer. The grants were made pursuant to the Anika Therapeutics, Inc. 2021 Inducement Plan, as amended, were approved by the compensation committee of the board of directors pursuant to a delegation of authority by the board of directors, and, in accordance with Nasdaq Listing Rule 5635(c)(4), were made as a material inducement to the grantee’s acceptance of employment with Anika as a component of the grantee’s employment compensation.

Of the shares covered by the Options and RSUs, one-third will vest on each of the first three anniversaries of the grant date, in each case for so long as the grantee provides continuous service to Anika through the relevant vesting date.

Unless earlier terminated in accordance with their terms, the Options will expire on the tenth anniversary of the grant date and the grants are otherwise subject to the terms and conditions of the respective equity award agreements approved by Anika. The Options and RSUs were granted pursuant to the Anika Therapeutics, Inc. 2021 Inducement Plan, as amended, which was not subject to stockholder approval.

About Anika
Anika Therapeutics, Inc. (NASDAQ: ANIK), is a global joint preservation company that creates and delivers meaningful advancements in early intervention orthopedic care. Leveraging our core expertise in hyaluronic acid and implant solutions, we partner with clinicians to provide minimally invasive products that restore active living for people around the world. Our focus is on high opportunity spaces within orthopedics, including Osteoarthritis Pain Management, Regenerative Solutions, Sports Medicine and Arthrosurface Joint Solutions, and our products are efficiently delivered in key sites of care, including ambulatory surgery centers. Anika’s global operations are headquartered outside of Boston, Massachusetts. For more information about Anika, please visit www.anika.com.

ANIKA, ANIKA THERAPEUTICS and the Anika logo are registered trademarks of Anika Therapeutics, Inc.

For Investor Inquiries:
Anika Therapeutics, Inc.
Mark Namaroff, 781-457-9287
Vice President, Investor Relations, ESG and Corporate Communications
investorrelations@anika.com

FAQ

What are the details of Anika's inducement grants announced on June 3, 2024?

Anika granted non-statutory stock options for 96,525 shares at $29.35 per share and RSUs for 38,520 shares to Stephen Griffin, the new CFO.

What is the vesting schedule for Anika's stock options and RSUs granted to Stephen Griffin?

One-third of the stock options and RSUs will vest on each of the first three anniversaries of the grant date.

When do Anika's inducement stock options expire?

The stock options will expire on the tenth anniversary of the grant date unless terminated earlier.

Under what plan were Anika's inducement grants made?

The inducement grants were made under Anika's 2021 Inducement Plan, which was amended and did not require stockholder approval.

Why were the inducement grants made to Stephen Griffin?

The grants were made as a material inducement for Stephen Griffin to accept his role at Anika, as part of his employment compensation.