Bionano Genomics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)
Bionano Genomics (Nasdaq: BNGO) announced the granting of non-qualified stock options to several executives, including CFO Christopher Stewart, CMO Alka Chaubey, and CSO Michael Paul, as part of its 2020 Inducement Plan. Stewart received options for 350,000 and 225,000 shares, while Chaubey got 300,000 shares, and Paul received options for 200,000 shares. Moreover, options covering 904,000 shares were granted to 34 employees following Bionano's acquisition of Lineagen, Inc. All options have an exercise price of $0.56, equal to the stock's closing price on the grant date.
- Granting of stock options may enhance executive retention and motivation.
- Acquisition of Lineagen expands Bionano’s employee base and potential service offerings.
- Stock options could lead to dilution of existing shareholder value.
- Compensation structure heavily reliant on stock options may raise concerns among investors.
SAN DIEGO, Sept. 04, 2020 (GLOBE NEWSWIRE) -- Bionano Genomics, Inc. (Nasdaq: BNGO) announced today that, in accordance with Nasdaq Listing Rule 5635(c)(4), the Compensation Committee of its Board of Directors granted the following non-qualified stock options pursuant to the company’s 2020 Inducement Plan to new employees as an inducement material to such employees entering into employment with the Company:
- To Christopher Stewart, Bionano’s Chief Financial Officer, an option to purchase up to 350,000 shares of common stock and a separate option to purchase up to 225,000 shares of common stock. The shares subject to the first option will vest over four years, with
25% of the shares vesting on the one-year anniversary of the September 1, 2020 vesting commencement date and the balance of the shares vesting in a series of 36 successive equal monthly installments thereafter. The shares subject to the second option will vest in full on December 31, 2020. The vesting of each of the foregoing options is subject to continuous service through each applicable vesting date and acceleration of vesting as set forth in Mr. Stewart’s employment agreement.
- To Alka Chaubey, Ph.D., Bionano’s Chief Medical Officer, an option to purchase up to 300,000 shares of common stock. The shares subject to the option will vest over four years, with
25% of the shares vesting on the one-year anniversary of the August 31, 2020 vesting commencement date and the balance of the shares vesting in a series of 36 successive equal monthly installments thereafter, subject to continuous service through each applicable vesting date.
- To Michael Paul, Bionano’s Chief Strategy Officer, an option to purchase up to 200,000 shares of common stock. The shares subject to the option shall vest in a series of 24 successive equal monthly installments over the two year period following the vesting commencement date of August 21, 2020, subject to continuous service through each applicable vesting date, provided that if, by February 21, 2021, Mr. Paul is not engaged as a consultant providing for a minimum of 12 months of continuous service measured from August 21, 2020, then 50,000 shares subject to the option shall accelerate and vest in full on February 21, 2020.
- To 34 employees in connection with Bionano’s acquisition of Lineagen, Inc., options to purchase an aggregate of 904,000 shares of common stock. The shares subject to each option will vest over four years, with
25% of the shares subject to the option vesting on the one-year anniversary of the vesting commencement date of August 21, 2020 and the balance of the shares vesting in a series of 36 successive equal monthly installments thereafter, subject to continuous service through each applicable vesting date.
Each of the foregoing stock options has an exercise price of
About Bionano Genomics
Bionano is a genome analysis company providing tools and services based on its Saphyr system to scientists and clinicians conducting genetic research and patient testing, and providing diagnostic testing for those with autism spectrum disorder (ASD) and other neurodevelopmental disabilities through its Lineagen business. Bionano’s Saphyr system is a platform for ultra-sensitive and ultra-specific structural variation detection that enables researchers and clinicians to accelerate the search for new diagnostics and therapeutic targets and to streamline the study of changes in chromosomes, which is known as cytogenetics. The Saphyr system is comprised of an instrument, chip consumables, reagents and a suite of data analysis tools, and genome analysis services to provide access to data generated by the Saphyr system for researchers who prefer not to adopt the Saphyr system in their labs. Lineagen has been providing genetic testing services to families and their healthcare providers for over nine years and has performed over 65,000 tests for those with neurodevelopmental concerns. For more information, visit www.bionanogenomics.com or www.lineagen.com.
CONTACTS
Company Contact:
Erik Holmlin, CEO
Bionano Genomics, Inc.
+1 (858) 888-7610
eholmlin@bionanogenomics.com
Investor Relations Contact:
Ashley R. Robinson
LifeSci Advisors, LLC
+1 (617) 430-7577
arr@lifesciadvisors.com
Media Contact:
Darren Opland, PhD
+1 (617) 733-7668
darren@lifescicomms.com
FAQ
What stock options were granted to Bionano Genomics executives?
What is the significance of the stock options grant on September 1, 2020?
How many shares were granted to employees after the Lineagen acquisition?
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