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

Rhea-AI Summary

Cullinan Oncology, a biopharmaceutical focused on cancer therapies, announced the grant of stock options for 86,000 shares to three new employees outside its 2021 Incentive Plan. The options were awarded on December 1, 2022, at an exercise price of $12.26, matching the stock's closing price on that day. Each option will vest over four years, beginning with 25% on the first anniversary. These actions comply with Nasdaq Listing Rule 5635(c)(4), designed to facilitate talent acquisition in line with their growth strategy.

Positive

• Options granted to attract talent, enhancing workforce capability.

Negative

• Stock options could dilute existing shareholder value over time.

CAMBRIDGE, Mass., Dec. 02, 2022 (GLOBE NEWSWIRE) -- Cullinan Oncology, Inc. (Nasdaq: CGEM) (“Cullinan”), a biopharmaceutical company focused on modality-agnostic targeted oncology for patients with cancer, today announced that the compensation committee of the Company's Board of Directors granted stock option awards to purchase an aggregate of 86,000 shares of its common stock to three 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).

Three employees received options to purchase an aggregate of 86,000 shares of Cullinan’s common stock on December 1, 2022 and have an exercise price of $12.26, which is equal to the closing price of Cullinan’s common stock on December 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.

FAQ

What is the significance of the stock options granted by Cullinan Oncology (CGEM)?

The stock options, granted to three new employees, aim to attract talent in compliance with Nasdaq rules, potentially enhancing company performance.

How many shares were granted in the stock options by Cullinan Oncology (CGEM)?

Cullinan Oncology granted stock options to purchase an aggregate of 86,000 shares.

What was the exercise price of the stock options awarded by Cullinan Oncology (CGEM)?

The exercise price for the stock options was set at $12.26, equal to the closing price on the grant date.

Over how long will the stock options vest for the new employees at Cullinan Oncology (CGEM)?

The stock options will vest over four years, with 25% vesting on the first anniversary.

What compliance rule did Cullinan Oncology (CGEM) follow for the stock option grants?

The grants comply with Nasdaq Listing Rule 5635(c)(4), which governs inducement awards outside of existing plans.