Cidara Therapeutics Reports Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Cidara Therapeutics (Nasdaq: CDTX) has granted a stock option for 115,000 shares to a new employee under its 2020 Inducement Incentive Plan, effective December 31, 2020. The exercise price is $2.00 per share, equal to the closing price on the grant date. The option vests over four years, with 25% vesting after one year and the remainder in monthly installments. This award complies with Nasdaq Listing Rule 5635(c)(4) as an inducement for the employee's hiring. Cidara focuses on long-acting therapeutics for serious fungal and viral infections, including its lead candidate, rezafungin.

Positive

• Granting of 115,000 stock options aligns employee incentives with company performance.
• The stock option's exercise price matches the market price, ensuring no immediate dilution.

Negative

• None.

SAN DIEGO, Jan. 05, 2021 (GLOBE NEWSWIRE) -- Cidara Therapeutics, Inc. (Nasdaq: CDTX), a biotechnology company developing long-acting therapeutics designed to transform the standard of care for patients facing serious fungal or viral infections, today announced that the Compensation Committee of its Board of Directors granted a stock option to purchase 115,000 shares of its common stock to a new employee, pursuant to the Cidara Therapeutics, Inc. 2020 Inducement Incentive Plan, with a grant date of December 31, 2020. The stock option has an exercise price of $2.00 per share, which is equal to the closing price of Cidara’s common stock on the grant date. The shares subject to the option will vest over four years, with 25% of the shares vesting on the one-year anniversary of the 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 vesting date. The stock option has a ten-year term and is subject to the terms and conditions of the company’s 2020 Inducement Incentive Plan and its standard form of stock option grant agreement thereunder.

The foregoing equity award was granted as an inducement material to the employee entering into employment with Cidara, in accordance with Nasdaq Listing Rule 5635(c)(4). The Cidara Therapeutics, Inc. 2020 Inducement Incentive Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of Cidara, or following a bona fide period of non-employment, as an inducement material to such individual’s entering into employment with Cidara, pursuant to Nasdaq Listing Rule 5635(c)(4).

About Cidara Therapeutics

Cidara is developing long-acting therapeutics designed to transform the standard of care for patients facing serious fungal or viral infections. The Company’s portfolio is comprised of its lead antifungal candidate, rezafungin, in addition to antiviral conjugates (AVCs) for the prevention and treatment of influenza and other viral diseases from Cidara’s proprietary Cloudbreak® antiviral platform. Cidara is headquartered in San Diego, California. For more information, please visit www.cidara.com. 

INVESTOR CONTACT:
Brian Ritchie
LifeSci Advisors
(212) 915-2578
britchie@lifesciadvisors.com 

MEDIA CONTACT:
Karen O’Shea, Ph.D.
LifeSci Communications
(929) 469-3860
koshea@lifescicomms.com 

FAQ

What stock option was granted by Cidara Therapeutics?

Cidara Therapeutics granted a stock option to purchase 115,000 shares at $2.00 per share.

When was the stock option granted to the new employee of CDTX?

The stock option was granted on December 31, 2020.

What is the vesting schedule for the stock options at Cidara?

The stock options vest over four years, with 25% vesting after one year and the remainder in equal monthly installments.

What is the purpose of the Cidara Inducement Incentive Plan?

The Cidara Inducement Incentive Plan grants equity awards to attract new employees.

How does the stock option affect Cidara Therapeutics' financials?

The stock option aligns employee incentives with performance, potentially enhancing company growth.