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

Rhea-AI Summary

ANI Pharmaceuticals announced the grant of non-qualified inducement stock options totaling 60,764 shares to two executives, Ori Gutwerg and Christopher Mutz, effective February 15, 2021. These options were provided as employment inducements in line with Nasdaq rules and will vest annually over four years. The options have an exercise price of $31.49 per share, matching the stock's closing price on February 12, 2021. They also feature acceleration clauses in case of a change in control or certain employment terminations.

Positive

• Granting of stock options may enhance executive retention and motivation.
• Inducement aligns executives' interests with company performance.

Negative

• Potential dilution of existing shares due to new stock options.

ANI Pharmaceuticals, Inc. (“ANI“ or the “Company“) (Nasdaq: ANIP) today announced that ANI's Board of Directors granted non-qualified inducement stock options to purchase an aggregate of 27,006 shares of ANI's common stock to Ori Gutwerg, ANI’s Senior Vice President, Generics, and an aggregate of 33,758 shares to Christopher Mutz, ANI’s Chief Commercial Officer & Head of Rare Disease, effective February 15, 2021.

The stock options were granted as inducements material to Mr. Gutwerg and Mr. Mutz entering into employment with ANI in accordance with Nasdaq Listing Rule 5635(c)(4). The stock options were granted outside of the Company's Sixth Amended and Restated 2008 Stock Incentive Plan, but except as set forth in their stock option agreements, are generally subject to the same terms and conditions as apply to stock options granted under the plan.

The stock options will vest with respect to 25% of the shares underlying the stock options on each one-year anniversary of the executive’s employment start date, subject to his continued service to ANI through each relevant vesting date. Notwithstanding the foregoing, the stock options will accelerate upon a change in control transaction or upon certain terminations of the executives’ employment. The stock options have ten-year terms and exercise prices of $31.49 per share, which is equal to the closing price of ANI's common stock on February 12, 2021.

About ANI

ANI Pharmaceuticals, Inc. is an integrated specialty pharmaceutical company developing, manufacturing, and marketing branded and generic prescription pharmaceuticals. The Company’s targeted areas of product development currently include narcotics, oncolytics (anti-cancers), hormones and steroids, and complex formulations involving extended release and combination products. For more information, please visit our website www.anipharmaceuticals.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210219005405/en/

FAQ

What stock options were granted by ANI Pharmaceuticals to executives?

ANI Pharmaceuticals granted non-qualified inducement stock options totaling 60,764 shares to Ori Gutwerg and Christopher Mutz.

When were the stock options granted to ANI executives?

The stock options were granted effective February 15, 2021.

What is the exercise price of the stock options granted to ANI executives?

The exercise price of the stock options is $31.49 per share.

Are the stock options granted to ANI executives subject to vesting?

Yes, the stock options vest annually over a four-year period.

What happens to the stock options in case of a change in control at ANI?

The stock options will accelerate upon a change in control transaction.