Aurinia Reports New Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Aurinia Pharmaceuticals (NASDAQ:AUPH) announced the grant of inducement stock options and restricted stock units (RSUs) to new executives and employees. The Compensation Committee approved 488,095 stock options and 290,343 RSUs for new executives Volker Knappertz and Scott Habig, alongside 123,100 stock options and 73,700 RSUs for ten new employees. The options have an exercise price of $8.18, the stock's closing price on July 29, 2022, and vest over three years. This aligns with Nasdaq Listing Rule 5635(c)(4) for inducement grants.

Positive

• Inducement stock options and RSUs granted to key executives and new employees may enhance talent retention and attract skilled professionals.
• The long-term vesting schedule (3 years) for stock options promotes alignment of employee interests with shareholder value.

Negative

• None.

VICTORIA, British Columbia--(BUSINESS WIRE)-- Aurinia Pharmaceuticals Inc. (NASDAQ:AUPH) (Aurinia or the Company), a biopharmaceutical company committed to delivering therapeutics that change the course of autoimmune disease, announced that the Company’s Compensation Committee granted, in connection with the previously announced appointments of Volker Knappertz, M.D. as Executive Vice President of Research and Development and Scott Habig as Chief Commercial Officer, an aggregate of 488,095 inducement stock options and an aggregate of 290,343 inducement restricted stock units (RSUs). Additionally, the Company's Compensation Committee granted 10 new employees an aggregate of 123,100 inducement stock options and an aggregate of 73,700 inducement RSUs. The options have a per share exercise price of $8.18, the closing price of Aurinia's common stock on July 29, 2022. The inducement stock options and RSUs have a grant date of August 1, 2022. The stock options and RSUs were granted as inducements material to the new employees entering employment with Aurinia in accordance with Nasdaq Listing Rule 5635(c)(4).

The inducement stock options have a ten-year term and vest over three years with one-third of the shares subject to the option vesting twelve months from the grant date, and the remainder vesting in twenty-four equal monthly installments thereafter.

The inducement RSUs shall vest in three equal annual installments beginning August 1, 2023.

About Aurinia

Aurinia Pharmaceuticals is a fully integrated biopharmaceutical company focused on delivering therapies to treat targeted patient populations that are impacted by serious diseases with a high unmet medical need. In January 2021, the Company introduced LUPKYNIS^® (voclosporin), the first FDA-approved oral therapy dedicated for the treatment of adult patients with active lupus nephritis. The Company’s head office is in Victoria, British Columbia, its U.S. commercial office is in Rockville, Maryland. The Company focuses its development efforts globally.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220801005741/en/

Investor/Media:

DeDe Sheel

Vice President Investor Relations, Aurinia

dsheel@auriniapharma.com

Source: Aurinia Pharmaceuticals Inc.

FAQ

What stock options and RSUs were granted by Aurinia Pharmaceuticals on August 1, 2022?

Aurinia granted 488,095 inducement stock options and 290,343 RSUs to new executives, and 123,100 stock options and 73,700 RSUs to ten new employees.

What is the exercise price for the stock options granted by Aurinia Pharmaceuticals?

The exercise price for the stock options is $8.18, the closing price on July 29, 2022.

What is the vesting schedule for the stock options granted by Aurinia Pharmaceuticals?

The stock options vest over three years, with one-third vesting after 12 months and the remainder vesting in monthly installments thereafter.

When do the RSUs granted by Aurinia Pharmaceuticals begin to vest?

The RSUs will vest in three equal annual installments starting August 1, 2023.