Accuray Incorporated Reports Inducement Awards Under NASDAQ Listing Rules

Rhea-AI Summary

Accuray Incorporated (NASDAQ: ARAY) has announced the granting of equity inducement awards to Dr. Jean-Philippe Pignol, its new Chief Medical & Technology Officer. As part of his induction, Dr. Pignol received 53,191 restricted stock units and a stock option for 96,480 shares, effective April 30, 2021. The stock option has a ten-year term with an exercise price of $4.70. Vesting of the awards will occur annually and monthly, contingent upon Dr. Pignol's continued service. These inducement awards comply with NASDAQ Listing Rule 5635(c)(4) and are consistent with the 2016 Equity Incentive Plan.

Positive

• Inducement awards signal commitment to attract key talent.
• Equity awards may align Dr. Pignol's interests with shareholders' goals.

Negative

• Significant stock options may dilute existing shareholders' equity.
• Reliance on a new executive could pose transitional risks.

SUNNYVALE, Calif., May 6, 2021 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today reported, as required by NASDAQ Listing Rules, equity inducement awards to Jean-Philippe Pignol, M.D., Ph.D., the company's new Chief Medical & Technology Officer. As a material inducement to Dr. Pignol joining the company, and in accordance with NASDAQ Listing Rule 5635(c)(4), the Board approved granting Dr. Pignol (i) an award of 53,191 restricted stock units covering shares of the company's common stock, and (ii) a stock option to purchase 96,480 shares of the company's common stock, in each case effective as of April 30, 2021 (collectively, the "Inducement Awards"). The Inducement Awards were made outside of the company's current equity plan, but are subject to terms and conditions generally consistent with those in the company's 2016 Equity Incentive Plan.

Twenty-five percent of the restricted stock units subject to the restricted stock unit award will vest on each yearly anniversary of the restricted stock unit award's grant date, subject to Dr. Pignol's continued service through each applicable vesting date.

The stock option award has a ten-year term and a per share exercise price of $4.70, representing the closing price of the company's common stock as quoted on the NASDAQ Global Select Market on the stock option award's date of grant. Twenty-five percent of the shares subject to the option will vest on the first yearly anniversary of the option's grant date and an additional 1/48th of the aggregate number of shares subject to the option will vest each month thereafter, subject to Dr. Pignol's continued service through each applicable vesting date.

About Accuray
Accuray is committed to expanding the powerful potential of radiation therapy to improve as many lives as possible. We invent unique, market-changing solutions designed to deliver radiation treatments for even the most complex cases—while making commonly treatable cases even easier—to meet the full spectrum of patient needs. We are dedicated to continuous innovation in radiation therapy for oncology, neuro-radiosurgery, and beyond, as we partner with clinicians and administrators, empowering them to help patients get back to their lives, faster. Accuray is headquartered in Sunnyvale, California, with facilities worldwide. To learn more, visit www.accuray.com or follow us on Facebook, LinkedIn, Twitter, and YouTube.

Media Contact
Beth Kaplan
Public Relations Director, Accuray
+1 (408) 789-4426
bkaplan@accuray.com  

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SOURCE Accuray Incorporated

FAQ

What are the equity inducement awards granted to Dr. Pignol of Accuray?

Dr. Pignol received 53,191 restricted stock units and stock options for 96,480 shares.

What is the stock option exercise price for the awards given to Dr. Pignol?

The exercise price for the stock options is set at $4.70 per share.

When were the inducement awards to Dr. Pignol made effective?

The inducement awards became effective on April 30, 2021.

How will the stock options awarded to Dr. Pignol vest?

The options will vest 25% on the first anniversary and monthly thereafter.

What is the NASDAQ rule related to the inducement awards for Accuray?

The awards comply with NASDAQ Listing Rule 5635(c)(4).