CymaBay Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

CymaBay Therapeutics, Inc. (NASDAQ: CBAY) announced the grant of a non-qualified stock option to Lewis Stuart, who has been appointed as Chief Commercial Officer. The award is for 360,000 shares, with an exercise price of $3.94 per share, matching the closing stock price on May 10, 2021. The stock option will vest 25% on May 10, 2022, with the remaining 75% vesting in monthly installments over three years, contingent on Mr. Stuart's employment. CymaBay focuses on developing therapies for liver diseases with unmet medical needs, including a breakthrough therapy for primary biliary cholangitis.

Positive

• Appointment of experienced Chief Commercial Officer may enhance strategic direction.
• Stock option grant aligns incentives with shareholders, promoting company growth.

Negative

• Heavy reliance on a single individual's performance for commercial success.

NEWARK, Calif., May 11, 2021 (GLOBE NEWSWIRE) -- CymaBay Therapeutics, Inc. (NASDAQ: CBAY), a clinical-stage biopharmaceutical company focused on developing therapies for liver and other chronic diseases with high unmet need, today announced the grant of an inducement award to Lewis Stuart in connection with his appointment as the company’s Chief Commercial Officer. The Compensation Committee of the Board of Directors of CymaBay approved the grant of a non-qualified stock option to purchase an aggregate of 360,000 shares of its common stock as an inducement material to Mr. Stuart entering into employment with CymaBay in accordance with Nasdaq Listing Rule 5635(c)(4), and is subject to the terms and conditions of the applicable award agreement covering such grant.

This stock option grant has an exercise price of $3.94 per share, which is equal to the closing price of CymaBay’s common stock on May 10, 2021, the date of grant for the stock option. The stock option will vest and become exercisable as to 25% of the underlying shares on May 10, 2022, and will vest and become exercisable as to the remaining 75% of the underlying shares in 36 equal monthly installments from May 10, 2022, subject to Mr. Stuart’s continued employment with CymaBay on such vesting dates.

About CymaBay
CymaBay Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on improving the lives of people with liver and other chronic diseases that have high unmet medical need through a pipeline of innovative therapies. Our deep understanding of the underlying mechanisms of liver inflammation and fibrosis, and the unique targets that play a role in their progression, have helped us receive breakthrough therapy designation (U.S. Food and Drug Administration), PRIority MEdicines status (European Medicines Agency) and orphan drug status (U.S. and Europe) for seladelpar, a first-in-class treatment for people with primary biliary cholangitis (PBC). Our evidence-based decision-making and commitment to the highest quality standards reflect our relentless dedication to the people, families and communities we serve. To learn more, visit www.cymabay.com and follow us on Twitter and Linkedin.

Public Relations Contact:

Glenn Silver
Lazar-FINN Partners
(973) 818-8198
Glenn.silver@finnpartners.com

Investor Relations Contact:

Hans Vitzthum
LifeSci Advisors, LLC
(617) 430-7578
Hans@LifeSciAdvisors.com

FAQ

What stock option was granted to Lewis Stuart at CymaBay (CBAY)?

Lewis Stuart was granted a stock option to purchase 360,000 shares at an exercise price of $3.94.

When will Lewis Stuart's stock options vest at CymaBay (CBAY)?

25% of Lewis Stuart's stock options will vest on May 10, 2022, with the remaining 75% vesting monthly over three years.

What is the significance of the stock option grant for CymaBay (CBAY)?

The stock option grant aligns the interests of Lewis Stuart with those of the shareholders, promoting company performance.