Calithera Biosciences Announces New Employment Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Calithera Biosciences (Nasdaq: CALA) announced the grant of a non-qualified stock option to a new employee for 50,000 shares at an exercise price of $4.91, equivalent to the closing trading price on December 31, 2020. The option vests one-fourth in December 2021, with the remainder vesting in thirty-six monthly installments. This grant complies with Nasdaq Listing Rule 5635(c)(4) and is part of the 2018 Inducement Plan. Calithera specializes in developing targeted therapies for cancer treatment.

Positive

• The grant of stock options may enhance employee retention and motivation.

Negative

• The stock price is set at $4.91, indicating potential concern over the stock's current valuation.
• The stock option's long vesting period may result in delayed employee productivity and impact short-term performance.

SOUTH SAN FRANCISCO, Calif., Dec. 31, 2020 (GLOBE NEWSWIRE) -- Calithera Biosciences, Inc. (Nasdaq: CALA), a clinical stage biotechnology company focused on discovering and developing novel small molecule drugs for the treatment of cancer and other life-threatening diseases, today announced that the compensation committee of the company’s board of directors granted one new employee a non-qualified stock option to purchase an aggregate of 50,000 shares of Calithera’s common stock, at a per share exercise price of $4.91, the closing trading price on December 31, 2020. One-fourth of the option vests in December 2021, and the balance of the option vests in a series of thirty-six successive equal monthly installments thereafter and was granted pursuant to the Calithera Biosciences, Inc. 2018 Inducement Plan, or Inducement Plan, which was approved by Calithera’s board of directors in January 2018 in accordance with Nasdaq Listing Rule 5635(c)(4). The stock option also has a ten-year term and is subject to the terms and conditions of the Inducement Plan and the stock option agreement pursuant to which the option was granted.

The stock option was granted as an inducement material to the new employee entering into employment with Calithera in accordance with Nasdaq Listing Rule 5635(c)(4).

About Calithera

Calithera Biosciences is a clinical-stage biopharmaceutical company pioneering the discovery and development of targeted therapies that disrupt cellular metabolic pathways to preferentially block tumor cells and enhance immune-cell activity. Driven by a commitment to rigorous science and a passion for improving the lives of people impacted by cancer and other life-threatening diseases, Calithera is advancing a pipeline of first-in-clinic, oral therapeutics to meaningfully expand treatment options available to patients. Calithera is headquartered in South San Francisco, California. For more information about Calithera, please visit www.calithera.com.

Forward Looking Statements

Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "expect," "anticipate," "estimate," "intend," "poised" and similar expressions (as well as other words or expressions referencing future events, conditions, or circumstances) are intended to identify forward-looking statements. These statements include those related to the safety, tolerability and efficacy of Calithera’s product candidates, the overall advancement of Calithera’s product candidates in clinical trials, the unmet need in the treatment of patients with advanced disease, and Calithera’s plans to continue development of its product candidates. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. The product candidates that Calithera develops may not progress through clinical development or receive required regulatory approvals within expected timelines or at all. In addition, clinical trials may not confirm any safety, potency or other product characteristics described or assumed in this press release. Such product candidates may not be beneficial to patients or successfully commercialized. The failure to meet expectations with respect to any of the foregoing matters may have a negative effect on Calithera's stock price. Additional information concerning these and other risk factors affecting Calithera's business can be found in Calithera's most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission, and other periodic filings with the Securities and Exchange Commission at www.sec.gov. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, Calithera disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

SOURCE: Calithera Biosciences, Inc.

CONTACT:

Jennifer McNealey
ir@Calithera.com
650-870-1071

FAQ

What stock option did Calithera Biosciences grant?

Calithera granted a non-qualified stock option to purchase 50,000 shares at $4.91.

When does the stock option for Calithera Biosciences vest?

The stock option vests one-fourth in December 2021, followed by thirty-six equal monthly installments.

What is the significance of Nasdaq Listing Rule 5635(c)(4) for Calithera?

This rule allows the company to grant stock options as an inducement for new employees.

What is Calithera Biosciences focused on?

Calithera is focused on discovering and developing small molecule drugs for cancer treatment.

What might affect Calithera's stock performance in the future?

Clinical trial results and regulatory approvals for their product candidates could significantly impact the stock.