Annexon Reports Inducement Grants to New Employees Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Annexon, a clinical-stage biopharmaceutical company, announced inducement grants to two new non-executive employees. These equity awards were made under the 2022 Employment Inducement Award Plan and approved on June 14, 2024, in line with Nasdaq Listing Rule 5635(c)(4). The new employees received options to purchase 109,300 shares of Annexon common stock. The exercise price is $5.62 per share, matching the closing stock price on the grant date. The options have a ten-year term and vest over four years, with 25% vesting after the first year and the remaining shares vesting monthly thereafter.

Positive

• Granted inducement options to purchase 109,300 shares.
• Exercise price is $5.62, the closing price on the grant date.
• Options have a ten-year term, aligning long-term incentives.
• Vesting schedule encourages employee retention with 25% vesting after one year and monthly vesting thereafter.

Negative

• Inducement grants may result in slight shareholder dilution.
• No immediate financial gain for the company from these grants.
• Stock options vesting over four years means delayed potential benefits.

BRISBANE, Calif., June 17, 2024 (GLOBE NEWSWIRE) -- Annexon, Inc. (Nasdaq: ANNX), a clinical-stage biopharmaceutical company developing a new class of complement-based medicines for people living with devastating inflammatory-related diseases, today announced that it has granted inducement to two new non-executive employees under the terms of the 2022 Employment Inducement Award Plan. The equity awards were approved on June 14, 2024, in accordance with Nasdaq Listing Rule 5635(c)(4).

In the aggregate, the new non-executive employees received options to purchase 109,300 shares of Annexon common stock. The options carry a ten-year term and an exercise price per share equal to $5.62, which was the closing price of Annexon’s common stock on June 14, 2024, the date of grant, and vest over 4 years, with 25% of the shares underlying the options vesting on the first anniversary of the grant date and an additional 1/48th of the shares vesting monthly thereafter, subject to continued service through the applicable vesting dates.

About Annexon

Annexon Biosciences (Nasdaq: ANNX) is a biopharmaceutical company advancing a late-stage clinical platform of novel therapies for people living with devastating classical complement-mediated neuroinflammatory diseases of the body, brain, and eye. Annexon’s novel scientific approach targets upstream C1q to block the classical complement inflammatory cascade before it starts, and its therapeutic candidates are designed to provide meaningful benefits across multiple autoimmune, neurodegenerative and ophthalmic diseases. With proof-of concept data in Guillain-Barré syndrome, Huntington’s disease and geographic atrophy, Annexon is rigorously advancing its mid-to late-stage clinical trials to bring new potential treatments to patients as quickly as possible.

Investor Contact:

Joyce Allaire
LifeSci Advisors
jallaire@lifesciadvisors.com

FAQ

What are the details of Annexon's recent inducement grants?

Annexon granted options to purchase 109,300 shares to two new non-executive employees with an exercise price of $5.62, a ten-year term, and a four-year vesting schedule.

What is the exercise price for the new stock options granted by Annexon?

The exercise price for the new stock options is $5.62 per share, the closing price on the grant date, June 14, 2024.

How do the new options granted by Annexon vest?

The options vest over four years, with 25% vesting on the first anniversary and the rest vesting monthly thereafter.

What is the term of the stock options granted by Annexon on June 14, 2024?

The stock options have a ten-year term.

Why did Annexon issue new inducement grants?

Annexon issued the inducement grants to attract and retain talent, in line with their 2022 Employment Inducement Award Plan.