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

Rhea-AI Summary

Cidara Therapeutics, Inc. (Nasdaq: CDTX) announced on October 1, 2021, that its Compensation Committee granted stock options and restricted stock units totaling 169,000 shares to ten new employees. The options have an exercise price of $2.24 per share, equal to the stock's closing price on the grant date. Vesting occurs over four years, with 25% vesting after one year. This initiative is part of the company's 2020 Inducement Incentive Plan and is compliant with Nasdaq Listing Rule 5635(c)(4). Cidara focuses on long-acting therapeutics for serious diseases, including its lead candidate, rezafungin acetate.

Positive

• Equity awards granted to attract new talent, potentially enhancing the company's human capital.
• Stock options have an exercise price equal to the current market price, aligning employee interests with share price growth.

Negative

• The granting of large equity awards may dilute existing shareholders' ownership if they lead to increased outstanding shares.

SAN DIEGO, Oct. 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 diseases, 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 169,000 shares of its common stock to ten new employees, pursuant to the Cidara Therapeutics, Inc. 2020 Inducement Incentive Plan, with a grant date of September 30, 2021. Each of the stock options has an exercise price of $2.24 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. All RSUs vest in four equal annual installments, with 1/4 vesting on each of the first, second, third and fourth anniversaries of the Quarterly Vesting Date that occurs during the calendar quarter that includes the Date of Grant, subject to the participant’s Continuous Service through each such vesting date. Quarterly Vesting Date means March 10, June 10, September 10 or December 10.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 diseases. The Company’s lead product candidate is rezafungin acetate, an intravenous formulation of a novel echinocandin. Rezafungin is being developed as a once-weekly, high-exposure therapy for the first-line treatment and prevention of serious, invasive fungal infections. In addition, the Company is using its Cloudbreak platform to develop a new class of drug-Fc conjugates, or DFCs, for the prevention and treatment of serious diseases, including influenza, respiratory syncytial virus, or RSV, human immunodeficiency virus, or HIV, and the SARS-CoV-2 strains causing COVID-19. The Company has also expanded Cloudbreak to discover and develop DFCs to treat cancer. 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 options were granted by Cidara Therapeutics on October 1, 2021?

Cidara Therapeutics granted stock options and restricted stock units totaling 169,000 shares to ten new employees.

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

The exercise price of the stock options is $2.24 per share.

How will the stock options vest for employees at Cidara?

The options will vest over four years, with 25% vesting on the one-year anniversary and the remainder vesting in monthly installments.

What is the purpose of the equity awards granted by Cidara?

The awards are intended as inducements for new employees to join the company.

What is Cidara Therapeutics' focus in drug development?

Cidara is focused on developing long-acting therapeutics for serious diseases, including its lead product candidate, rezafungin acetate.