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

Rhea-AI Summary

Anika Therapeutics (NASDAQ: ANIK) announced on May 2, 2022, the granting of stock options and restricted stock units (RSUs) to five newly hired non-executive employees. A total of 13,091 options were granted at an exercise price of $21.61, and 16,113 options at $23.77, which is 110% of the closing price on the grant date. The RSUs covered 20,818 shares. These grants are part of the 2021 Inducement Plan and serve as incentives for employment. Vesting for both options and RSUs occurs over three years, contingent on continuous service to the company.

Positive

• Granting stock options and RSUs may attract and retain talented employees.
• Options and RSUs are structured to incentivize long-term employment, aligning employee interests with shareholder value.

Negative

• The issuance of stock options at a premium may reflect potential concerns over stock price stability.
• No stockholder approval was required for the 2021 Inducement Plan, which could raise governance concerns.

BEDFORD, Mass., May 13, 2022 (GLOBE NEWSWIRE) -- Anika Therapeutics, Inc. (NASDAQ: ANIK), a global joint preservation company in early intervention orthopedics, today announced that on May 2, 2022, Anika granted non-statutory stock options (“Options”) covering an aggregate of 13,091 shares of common stock at a per share exercise price of $21.61, which equaled the closing price of common stock on the Nasdaq Global Select Market (“Closing Price”) on the grant date, 16,113 Options at a per share exercise price of $23.77, which equaled 110% of the Closing Price on the grant date, and restricted stock units ( “RSUs”) covering an aggregate of 20,818 shares of common stock to 5 newly hired non-executive employees. Each grant was made pursuant to the Anika Therapeutics, Inc. 2021 Inducement Plan, was 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), was 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 each of the Options, 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.

The RSUs will vest in three equal installments, with one-third of the shares covered by each of the RSUs vesting 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 Options and RSUs 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, 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 soft tissue repair and bone preserving joint technologies, 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 stock options were granted by Anika Therapeutics on May 2, 2022?

On May 2, 2022, Anika granted 13,091 stock options at $21.61 and 16,113 options at $23.77 to five new non-executive employees.

How many restricted stock units (RSUs) were awarded by Anika Therapeutics?

Anika Therapeutics awarded a total of 20,818 RSUs to the newly hired non-executive employees.

What is the vesting schedule for Anika's stock options and RSUs?

Both the stock options and RSUs vest in three equal installments over three years, conditional on continuous service to Anika.

Is the 2021 Inducement Plan approved by stockholders?

The 2021 Inducement Plan under which the awards were granted was not subject to stockholder approval.

What is the purpose of the stock options and RSUs granted by Anika?

The stock options and RSUs serve as material inducements for the acceptance of employment and to align employee compensation with company performance.