Cullinan Oncology Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Cullinan Oncology (Nasdaq: CGEM) announced the granting of stock options for 174,000 shares to four new employees as an inducement for their hiring. These options, which have an exercise price of $11.34 per share—equal to the closing price on June 1, 2022—are tied to the Nasdaq Listing Rule 5635(c)(4). Each option has a ten-year term and will vest over four years, with 25% vesting on the first anniversary. This move is aimed at attracting talent and enhancing the company's position in the biopharmaceutical sector focused on cancer therapies.

Positive

• Stock options granted to four new employees to attract talent.
• Options equal to the closing stock price, indicating fair compensation.
• Long vesting period encourages employee retention.

Negative

• None.

CAMBRIDGE, Mass., June 01, 2022 (GLOBE NEWSWIRE) -- Cullinan Oncology, Inc. (Nasdaq: CGEM) (“Cullinan”) today announced that the compensation committee of the Company's Board of Directors granted stock option awards to purchase an aggregate of 174,000 shares of its common stock to four employees outside Cullinan Oncology, Inc’s 2021 Stock Option and Incentive Plan. The stock options were granted as an inducement material to the individuals entering into employment with Cullinan, in accordance with Nasdaq Listing Rule 5635(c)(4).

Four employees received options to purchase an aggregate of 174,000 shares of Cullinan’s common stock on June 1, 2022 and have an exercise price of $11.34, which is equal to the closing price of Cullinan’s common stock on June 1, 2022. Each option has a ten-year term and vests over four years, with 25 percent of the original number of shares underlying each option vesting on the one-year anniversary of the vesting commencement date and then in equal installments for 36 months thereafter, subject to the employee's continued service with Cullinan through the applicable vesting dates.

About Cullinan Oncology

Cullinan Oncology, Inc. (NASDAQ: CGEM) is a biopharmaceutical company dedicated to creating new standards of care for patients with cancer. We innovate without borders to find the most promising clinic-ready cancer therapies, whether from our own discovery efforts or through exceptional engagement with our academic and industry partners. Anchored in a deep understanding of immuno-oncology and translational cancer medicine, we leverage our scientific excellence in small molecules and biologics to create differentiated ideas, identify unique targets, and select the optimal modality to develop transformative therapeutics across cancer indications. Powered by our novel research model, we push conventional boundaries from candidate selection to cancer therapeutic, applying rigorous early experimentation to fast-track only the most promising assets to the clinic and ultimately commercialization. As a result, our diversified pipeline is strategically built with assets that activate the immune system or inhibit key oncogenic drivers across a wide range of modalities, each with the potential to be the best or first in their class.

Our people possess deep scientific expertise, seek innovation openly, and exercise creativity and urgency to deliver on our promise to bring new therapeutic solutions to patients with cancer. Learn more about our Company at www.cullinanoncology.com, and follow us on LinkedIn and Twitter.

Contacts
Investor Relations
Chad Messer
+1 203.464.8900
cmesser@cullinanoncology.com

Media
Rose Weldon
+1 215.801.7644
rweldon@cullinanoncology.com

FAQ

What are the details of the stock option grants by Cullinan Oncology (CGEM)?

On June 1, 2022, Cullinan Oncology granted stock options to purchase 174,000 shares to four employees, with an exercise price of $11.34 per share.

How do the stock options at Cullinan Oncology vest?

The stock options vest over four years, with 25% vesting on the first anniversary and the remainder vesting in equal installments over the subsequent 36 months.

What is the purpose of the stock options granted by Cullinan Oncology?

The stock options were granted as an inducement for new hires, enhancing the company's ability to attract and retain talent.

Is the exercise price of the stock options favorable for Cullinan Oncology?

Yes, the exercise price of $11.34 is equal to the closing price of the stock on the grant date, suggesting a fair market value.