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

Rhea-AI Summary

Chimerix (NASDAQ: CMRX) announced inducement grants to two new employees under Nasdaq Listing Rule 5635(c)(4) on July 5, 2024. The grants, approved by the Compensation Committee on July 1, 2024, include non-statutory stock options to purchase a total of 120,000 shares of common stock. The stock options have an exercise price equivalent to the closing trading price as of the grant date, a 10-year term, and vest over four years. This includes one-fourth vesting on the first-year anniversary of the hire and the remainder vesting monthly over the next three years. The options are subject to the 2024 Equity Incentive Plan's terms, although granted outside of it. Chimerix focuses on developing medicines for life-threatening diseases, with its leading program, ONC201, targeting H3 K27M-mutant glioma.

Positive

• Granted 120,000 stock options to new employees, potentially boosting employee retention.
• Stock options have a 10-year term, offering long-term incentives.

Negative

• Potential dilution of existing shares due to the issuance of new stock options.

DURHAM, N.C., July 05, 2024 (GLOBE NEWSWIRE) -- Chimerix (NASDAQ:CMRX), today announced that on July 1, 2024, the Compensation Committee of Chimerix’s Board of Directors granted inducement awards to two new employees of non-statutory stock options to purchase up to a total of 120,000 shares of Chimerix’s common stock. The Compensation Committee of Chimerix’s Board of Directors approved the awards as an inducement material to the new employees’ employment in accordance with Nasdaq Listing rule 5635(c)(4).

The stock options have an exercise price per share equal to Chimerix’s closing trading price as of the grant date. The stock options have a 10-year term and will vest over four years, with one-fourth vesting on the one-year anniversary of the date of hire and the remaining three-fourths vesting over the following three years in equal monthly installments. The stock options are subject to the terms of Chimerix’s 2024 Equity Incentive Plan but were granted outside of the 2024 Equity Incentive Plan.

Chimerix is a biopharmaceutical company with a mission to develop medicines that meaningfully improve and extend the lives of patients facing deadly diseases. The Company’s most advanced clinical-stage development program, ONC201, is in development for H3 K27M-mutant glioma.

CONTACTS:

Will O’Connor
Stern Investor Relations
212-362-1200
ir@chimerix.com
will@sternir.com

FAQ

What did Chimerix announce on July 5, 2024?

Chimerix announced the granting of inducement stock options to two new employees under Nasdaq Listing Rule 5635(c)(4).

How many shares are covered by the inducement grants announced by Chimerix?

The inducement grants cover a total of 120,000 shares of Chimerix's common stock.

What is the vesting schedule for the stock options granted by Chimerix?

The stock options vest over four years, with one-fourth vesting on the one-year anniversary and the remaining vesting monthly over the next three years.

What is the exercise price for the Chimerix stock options granted on July 1, 2024?

The exercise price is equal to Chimerix’s closing trading price on the grant date.

Under which rule were the stock options granted by Chimerix on July 1, 2024?

The stock options were granted under Nasdaq Listing Rule 5635(c)(4).