Apellis Pharmaceuticals Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Apellis Pharmaceuticals (APLS) announced the approval of equity awards for four new employees on September 1, 2020. The grant includes options for 151,342 shares at an exercise price of $30.45, equivalent to the company's closing stock price on the grant date. The vesting schedule allows for one-fourth of the shares to vest annually, with complete vesting occurring after four years. These awards are intended to incentivize employees and align their interests with the company’s growth trajectory.

Positive

• Equity awards granted to new employees could enhance employee retention and motivation.
• The exercise price of $30.45 corresponds to the close of stock, indicating no immediate dilution impact.

Negative

• The grants are contingent on continued employment, which may not guarantee long-term retention.
• No immediate financial metrics provided in the PR to assess direct impact on revenue or profits.

WALTHAM, Mass., Sept. 04, 2020 (GLOBE NEWSWIRE) -- Apellis Pharmaceuticals, Inc. (Nasdaq: APLS), a global biopharmaceutical company pioneering targeted C3 therapies, today announced that the company approved the grant of equity awards to four new employees with grant date of September 1, 2020, as equity inducement awards outside of the company's 2017 Stock Incentive Plan (but under the terms of the 2020 Inducement Stock Incentive Plan) and material to the employees’ acceptance of employment with the company. The equity awards were approved on April 30, 2020, July 14, 2020, July 30, 2020, and August 4, 2020, in accordance with Nasdaq Listing Rule 5635(c)(4).

The employees received options to purchase 151,342 shares of Apellis common stock. The options have an exercise price of $30.45, which is equal to the closing price of Apellis common stock on September 1, 2020, the grant date of the options. One-fourth of the shares underlying the employee options will vest on the one year anniversary of the grant date and thereafter 1/48th of the shares underlying the employee options will vest monthly, such that the shares underlying the options granted to the employees will be fully vested on the fourth anniversary of the grant date, subject to the employees’ continued employment with Apellis on such vesting dates.

About Apellis
Apellis Pharmaceuticals, Inc. is a global biopharmaceutical company that is committed to leveraging courageous science, creativity, and compassion to deliver life-changing therapies. Leaders in targeted C3 therapies, we aim to develop best-in-class and first-in-class therapies for a broad range of debilitating diseases that are driven by uncontrolled or excessive activation of the complement cascade, including those within hematology, ophthalmology, nephrology, and neurology. For more information, please visit http://apellis.com.

Apellis Forward-Looking Statement
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the implications of preliminary clinical data. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: whether the company’s clinical trials will be fully enrolled and completed when anticipated; whether preliminary or interim results from a clinical trial will be predictive of the final results of the trial; whether results obtained in preclinical studies and clinical trials will be indicative of results that will be generated in future clinical trials; whether pegcetacoplan or APL-9 will successfully advance through the clinical trial process on a timely basis, or at all; whether the results of the company’s clinical trials will warrant regulatory submissions and whether pegcetacoplan or APL-9 will receive approval from the FDA or equivalent foreign regulatory agencies for GA, PNH, CAD, C3G, COVID-19 with respiratory failure including ARDS or any other indication when expected or at all; whether, if Apellis’ products receive approval, they will be successfully distributed and marketed; and other factors discussed in the “Risk Factors” section of Apellis’ Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on July 30, 2020 and the risks described in other filings that Apellis may make with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and Apellis specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Investor Contact:
Sam Martin / Maghan Meyers
Argot Partners
sam@argotpartners.com / maghan@argotpartners.com
212.600.1902

FAQ

What equity awards were granted by Apellis Pharmaceuticals?

On September 1, 2020, Apellis Pharmaceuticals granted equity awards totaling options for 151,342 shares to new employees.

What is the exercise price of the options granted by APLS?

The exercise price for the options granted is $30.45, which matches the closing price of Apellis common stock on the grant date.

How long will it take for the equity awards to fully vest?

The equity awards for the new employees will fully vest over four years, with one-fourth vesting after the first year and monthly thereafter.

Why were the equity awards granted to new employees?

The equity awards were granted as inducements for the new employees' acceptance of employment with Apellis.

What compliance rule does the equity award adhere to?

The equity awards were approved in compliance with Nasdaq Listing Rule 5635(c)(4).