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

Rhea-AI Summary

Cidara Therapeutics (Nasdaq: CDTX) announced on April 1, 2021, that its Compensation Committee granted stock options and restricted stock units totaling 27,000 shares to four new employees. These equity awards are part of the 2020 Inducement Incentive Plan and have a grant date exercise price of $2.66 per share, equal to the stock's closing price on the grant date. Vesting will occur over four years, subject to continuous service. This initiative aligns with Nasdaq Listing Rule 5635(c)(4) to induce talent by offering meaningful equity compensation.

Positive

• Granting of 27,000 shares as part of employee compensation may enhance employee retention and motivation.
• The $2.66 exercise price equates to the current stock price, providing potential value to employees.

Negative

• None.

SAN DIEGO, April 01, 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 non-qualified stock option awards and restricted stock units for an aggregate of 27,000 shares of its common stock to four new employees, pursuant to the Cidara Therapeutics, Inc. 2020 Inducement Incentive Plan, with a grant date of March 31, 2021. Each of the stock options has an exercise price of $2.66 per share, which is equal to the closing price of Cidara’s common stock on the grant date. The shares subject to the options will vest over four years, with 25% of the shares vesting on the one-year anniversary of the applicable vesting commencement date and the balance of the shares vesting in a series of 36 successive equal monthly installments thereafter.  The restricted stock units will vest in four equal installments, with 25% vesting on the one-year anniversary of the 10th day of the last month of the quarter in which the RSUs were granted and the balance vesting in three equal annual installments on each anniversary thereof, such that the restricted stock units will become fully vested on the four-year anniversary of the vesting commencement date. The awards are subject to the award holders’ continuous service through each vesting date and to the terms and conditions of the company’s 2020 Inducement Incentive Plan and its standard forms of grant agreements thereunder.

The foregoing equity awards were granted as inducements material to the employees 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 did Cidara Therapeutics announce on April 1, 2021?

Cidara Therapeutics announced the grant of 27,000 shares in stock options and restricted stock units to four new employees.

What is the exercise price of the stock options granted by Cidara?

The exercise price for the stock options is $2.66 per share.

How long is the vesting period for the stock options granted by Cidara?

The vesting period for the stock options is four years.

What is the purpose of Cidara's 2020 Inducement Incentive Plan?

The plan is designed to grant equity awards to new employees as an inducement for employment.