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

Rhea-AI Summary

Cullinan Oncology (CGEM) announced the granting of stock options for 279,100 shares to four new employees as an inducement for employment. The options were awarded outside the 2021 Stock Option and Incentive Plan, in compliance with Nasdaq Listing Rule 5635(c)(4). Three employees received options for 129,100 shares at an exercise price of $10.99, and one employee received options for 150,000 shares at $12.04, both reflecting the closing prices on their respective grant dates. Each option vests over four years upon continued service.

Positive

• Stock options granted to 279,100 shares can attract talent.
• Options have a ten-year term, enhancing employee retention.

Negative

• Options granted outside of the established 2021 Stock Option and Incentive Plan may raise governance concerns.
• Potential dilution of existing shareholder value due to new shares from options.

CAMBRIDGE, Mass., April 04, 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 279,100 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).

Three employees received options to purchase an aggregate of 129,100 shares of Cullinan’s common stock on April 1, 2022, and have an exercise price of $10.99, which is equal to the closing price of Cullinan’s common stock on April 1, 2022. On April 4, an employee was issued an option to purchase 150,000 shares of Cullinan’s common stock with an exercise price of $12.04 per share, which is equal to the closing price of Cullinan’s common stock on April 4, 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 is a biopharmaceutical company that is developing a diversified pipeline of targeted therapeutic candidates across multiple modalities in order to bring important medicines to cancer patients. The Company’s strategy is to source innovation through both internal discovery efforts and external collaborations, focusing on advanced stage assets with novel technology platforms and differentiated mechanisms. Learn more about Cullinan at www.cullinanoncology.com.

Contacts

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

Media
Rose Weldon
+1 215.801.7644
rweldon@cullinanoncology.com

 

FAQ

What stock options did Cullinan Oncology grant on April 4, 2022?

Cullinan Oncology granted options to purchase 279,100 shares to four employees on April 4, 2022.

What is the exercise price for the stock options granted by CGEM?

The exercise prices for the stock options are $10.99 and $12.04, reflecting the closing stock prices on the grant dates.

How long is the term for the stock options issued by Cullinan?

The stock options granted by Cullinan have a ten-year term.

What rules did Cullinan Oncology follow for granting stock options?

Cullinan granted stock options in accordance with Nasdaq Listing Rule 5635(c)(4).

How do the stock options vest for employees at Cullinan Oncology?

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