Accuray Incorporated Reports Inducement Awards Under NASDAQ Listing Rules

Rhea-AI Summary

Accuray Incorporated (NASDAQ: ARAY) announced the granting of equity inducement awards to Sandeep Chalke, its new senior vice president and chief commercial officer, as per NASDAQ Listing Rules. The awards include 312,500 restricted stock units and a stock option for 515,873 shares, effective May 31, 2022. The stock options have a ten-year term with an exercise price of $2.08 per share. Vesting for both awards is contingent on Mr. Chalke’s continued service, with 25% vesting annually for restricted stock units and monthly increments for the stock options.

Positive

• Appointment of an experienced executive, Sandeep Chalke, to enhance leadership.
• Equity inducement awards potentially align Chalke's interests with shareholder value.

Negative

• None.

SUNNYVALE, Calif., June 6, 2022 /PRNewswire/ -- Accuray Incorporated (NASDAQ: ARAY) today reported, as required by NASDAQ Listing Rules, equity inducement awards to Sandeep Chalke, the company's new senior vice president, chief commercial officer. As a material inducement to Mr. Chalke joining the company, and in accordance with NASDAQ Listing Rule 5635(c)(4), the Board approved granting Mr. Chalke (i) an award of 312,500 restricted stock units covering shares of the company's common stock, and (ii) a stock option to purchase 515,873 shares of the company's common stock, in each case effective as of May 31, 2022 (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.

25 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 Mr. Chalke's continued service through each applicable vesting date.

The stock option award has a ten-year term and a per share exercise price of $2.08, 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 Mr. Chalke'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 equity inducement awards were granted to Sandeep Chalke at Accuray?

Sandeep Chalke received 312,500 restricted stock units and a stock option for 515,873 shares.

When did Accuray grant the equity inducement awards to Sandeep Chalke?

The awards were granted effective as of May 31, 2022.

What is the exercise price for stock options awarded to Sandeep Chalke?

The exercise price for the stock options is $2.08 per share.

How will the restricted stock units vest for Sandeep Chalke?

25% of the restricted stock units will vest on each yearly anniversary of the award's grant date.

What is the term for the stock option awarded to Sandeep Chalke?

The stock option has a ten-year term.