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 for two new non-executive employees under its 2022 Employment Inducement Award Plan. Approved on May 11, 2024, in line with Nasdaq Listing Rule 5635(c)(4), these equity awards include options to purchase 52,590 shares of Annexon’s common stock. These options have a ten-year term, an exercise price of $4.50 per share (the closing price on May 15, 2024), and vest over four years. Specifically, 25% of the shares vest on the first anniversary of the grant date, with an additional 1/48th vesting monthly thereafter, provided the employees continue their service through the vesting dates.

Positive

• Approval of inducement grants aligns with Nasdaq Listing Rule 5635(c)(4), showcasing regulatory compliance.
• Options granted to new employees may enhance motivation and retention, benefiting long-term company growth.
• The options have a competitive exercise price of $4.50, potentially advantageous if stock value increases.

Negative

• The issuance of 52,590 new options could lead to shareholder dilution over time.
• The long vesting period (four years) introduces uncertainty regarding employee retention.

BRISBANE, Calif., May 16, 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 May 11, 2024, in accordance with Nasdaq Listing Rule 5635(c)(4).

In the aggregate, the new non-executive employees received options to purchase 52,590 shares of Annexon common stock. The options carry a ten-year term and an exercise price per share equal to $4.50, which was the closing price of Annexon’s common stock on May 15, 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. To learn more visit annexonbio.com.

Investor Contact:

Joyce Allaire
LifeSci Advisors
jallaire@lifesciadvisors.com

FAQ

What is the stock symbol for Annexon?

The stock symbol for Annexon is ANNX.

When were the inducement grants approved?

The inducement grants were approved on May 11, 2024.

How many shares were included in the inducement grants?

The inducement grants included options to purchase 52,590 shares of Annexon common stock.

What is the exercise price for the options granted to Annexon employees?

The exercise price for the options is $4.50 per share.

Over what period do the options granted by Annexon vest?

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