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

Rhea-AI Summary

BioCryst Pharmaceuticals announced the inducement grants to 10 newly-hired employees under Nasdaq Listing Rule 5635(c)(4). These grants include stock options for 74,875 shares and restricted stock units (RSUs) for 39,050 shares of common stock. The grants were issued on May 31, 2024, with the stock options priced at $6.46 per share, matching the closing price on the grant date. The vesting schedules vary: nine employees will see options and RSUs vest in four annual installments starting one year from the grant date, while one director's options and RSUs will vest 50% on the first-year anniversary and the rest over the next two years. Each stock option has a 10-year term and is subject to BioCryst’s Inducement Equity Incentive Plan.

Positive

• Grant of stock options and RSUs may attract and retain new talent.
• Options priced at closing price on the grant date ($6.46) aligns employee interests with shareholders.
• Vesting schedules encourage long-term employee commitment.
• 10-year term for stock options provides employees with significant time to benefit from potential stock appreciation.

Negative

• Inducement grants can lead to shareholder dilution as more shares are issued.
• No immediate financial benefit from these grants; future costs associated with stock options and RSUs.
• Stock price needs to appreciate above $6.46 for employees to benefit from options.
• Dependency on continued employee service for grants to vest; risk if employees leave prematurely.

RESEARCH TRIANGLE PARK, N.C., June 04, 2024 (GLOBE NEWSWIRE) -- BioCryst Pharmaceuticals, Inc. (Nasdaq: BCRX) today announced that the compensation committee of BioCryst’s board of directors granted 10 newly-hired employees stock options to purchase an aggregate of 74,875 shares, and restricted stock units (RSUs) covering an aggregate of 39,050 shares, of BioCryst common stock. The options and RSUs were granted as of May 31, 2024, as inducements material to each employee entering into employment with BioCryst. The options and RSUs were granted in accordance with Nasdaq Listing Rule 5635(c)(4).

The options have an exercise price of $6.46 per share, which is equal to the closing price of BioCryst common stock on the grant date. For nine of the employees, the options and RSUs vest in four equal annual installments beginning on the one-year anniversary of the grant date, in each case subject to the new employee’s continued service with the company. For the new director, global revenue accounting, 50 percent of the options and RSUs vest on the first anniversary of the grant, and the remainder will vest in two equal annual installments, beginning on the second anniversary of the grant, subject to the new employee’s continued service with the company. Each stock option has a 10-year term. The options and RSUs are subject to the terms and conditions of BioCryst’s Inducement Equity Incentive Plan and a stock option agreement or restricted stock unit agreement, as applicable, covering the grant.

About BioCryst Pharmaceuticals
BioCryst Pharmaceuticals is a global biotechnology company with a deep commitment to improving the lives of people living with complement-mediated and other rare diseases. BioCryst leverages its expertise in structure-guided drug design to develop first-in-class or best-in-class oral small-molecule and protein therapeutics to target difficult-to-treat diseases. BioCryst has commercialized ORLADEYO^® (berotralstat), the first oral, once-daily plasma kallikrein inhibitor, and is advancing a pipeline of small-molecule and protein therapies. For more information, please visit www.biocryst.com or follow us on LinkedIn.

BCRXW

Contact:
John Bluth
+1 919 859 7910
jbluth@biocryst.com

FAQ

What did BioCryst announce on June 4, 2024?

BioCryst announced inducement grants of stock options and RSUs to 10 newly-hired employees under Nasdaq Listing Rule 5635(c)(4).

How many shares were granted in BioCryst's inducement grants?

BioCryst granted stock options for 74,875 shares and RSUs for 39,050 shares.

What is the exercise price for BioCryst's stock options granted on May 31, 2024?

The exercise price is $6.46 per share, the closing price on the grant date.

When do BioCryst's stock options and RSUs vest?

For nine employees, they vest in four equal annual installments beginning one year from the grant date. For the new director, 50% vests after one year, and the rest in two annual installments starting the second year.

What is the term of BioCryst's stock options granted in 2024?

Each stock option has a 10-year term.