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

Rhea-AI Summary

Cullinan Oncology, Inc. (Nasdaq: CGEM) announced the grant of stock options to two new employees, totaling 70,000 shares, outside its 2021 Stock Option and Incentive Plan. The exercise price is set at $12.93, matching the closing price on July 1, 2022. Each option features a ten-year term and vests over four years, with 25% vesting after one year and the remainder in equal installments over the following 36 months, contingent on continued employment. This move aligns with Nasdaq Listing Rule 5635(c)(4) and aims to incentivize new talent within the company.

Positive

• Granting stock options may enhance employee retention and motivation.

Negative

• The exercise price of $12.93 could indicate perceived overvaluation compared to market expectations.

CAMBRIDGE, Mass., July 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 70,000 shares of its common stock to two 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).

Two employees received options to purchase an aggregate of 70,000 shares of Cullinan’s common stock on July 1, 2022 and have an exercise price of $12.93, which is equal to the closing price of Cullinan’s common stock on July 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 recent stock option grants were made by Cullinan Oncology (CGEM)?

On July 1, 2022, Cullinan Oncology granted stock options totaling 70,000 shares to two new employees.

What is the exercise price of the stock options granted by Cullinan Oncology?

The exercise price of the stock options is set at $12.93, which equals the closing price of the stock on the grant date.

What is the vesting schedule for the stock options granted by Cullinan Oncology (CGEM)?

The stock options vest over four years, with 25% vesting after one year, followed by equal installments over the next 36 months.

How does the stock option grant affect Cullinan Oncology's financial strategy?

The stock option grant is likely aimed at attracting and retaining talent, which can be beneficial for long-term financial performance.

Does the stock option grant by Cullinan Oncology (CGEM) reflect company performance?

The stock options granted at the market price indicate an effort to align employee interests with shareholder value.