Crinetics Pharmaceuticals Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

On June 10, 2022, Crinetics Pharmaceuticals (Nasdaq: CRNX) announced the grant of non-qualified stock options to purchase 138,500 shares to seven new non-executive employees. This action follows the 2021 Employment Inducement Incentive Award Plan, aimed at attracting new talent. The options have an exercise price of $18.59 per share and will vest over four years, contingent upon continued employment. This initiative aligns with Nasdaq regulations designed to incentivize new hires and support the company's growth in developing treatments for rare endocrine diseases.

Positive

• Granting of stock options to seven new hires supports talent attraction.
• Stock options vested over four years incentivize long-term employee engagement.

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• None.

SAN DIEGO, June 10, 2022 (GLOBE NEWSWIRE) -- Crinetics Pharmaceuticals, Inc. (Nasdaq: CRNX) today announced that on June 10, 2022, the Compensation Committee of Crinetics’ Board of Directors granted non-qualified stock option awards to purchase an aggregate of 138,500 shares of its common stock to seven new non-executive employees under the Crinetics Pharmaceuticals, Inc. 2021 Employment Inducement Incentive Award Plan (the “2021 Inducement Plan”). The stock options were granted as inducements material to the employees entering into employment with Crinetics in accordance with Nasdaq Listing Rule 5635(c)(4).

The 2021 Inducement Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of Crinetics, or following a bona fide period of non-employment, as an inducement material to such individuals’ entering into employment with Crinetics, pursuant to Nasdaq Listing Rule 5635(c)(4).

The options have an exercise price of $18.59 per share, which is equal to the fair market value of Crinetics’ common stock on The Nasdaq Global Select Market on the date of grant, as determined under the 2021 Inducement Plan. The shares subject to the stock options will vest over four years, with 25% of the shares vesting on the one-year anniversary of the applicable vesting commencement date and the balance of the shares vesting in a series of 36 successive equal monthly installments thereafter, subject to each employee’s continued employment with Crinetics on such vesting dates. The options are subject to the terms and conditions of the 2021 Inducement Plan and the terms and conditions of a stock option agreement covering the grant.

About Crinetics Pharmaceuticals
Crinetics Pharmaceuticals is a clinical stage pharmaceutical company focused on the discovery, development, and commercialization of novel therapeutics for rare endocrine diseases and endocrine-related tumors. Paltusotine, a somatostatin receptor type 2 (SST2) agonist, is in Phase 3 clinical development for acromegaly and Phase 2 clinical development for carcinoid syndrome associated with neuroendocrine tumors. Crinetics has demonstrated pharmacologic proof-of-concept in Phase 1 clinical studies for CRN04777, a somatostatin receptor type 5 (SST5) agonist for congenital hyperinsulinism, and for CNR04894, an ACTH antagonist for the treatment of Cushing’s disease, congenital adrenal hyperplasia, and other diseases of excess ACTH. All of the company’s drug candidates are orally delivered, small molecule new chemical entities resulting from in-house drug discovery efforts.

Contacts: 
Chas Schultz 
VP, IR & Corporate Communications 
cschultz@crinetics.com
(858) 450-6464 

Investors / Media:
Corey Davis
LifeSci Advisors, LLC
cdavis@lifesciadvisors.com
(212) 915-2577

Aline Sherwood
Scienta Communications
asherwood@scientapr.com
(312) 238-8957

FAQ

What stock options were granted by Crinetics Pharmaceuticals on June 10, 2022?

Crinetics Pharmaceuticals granted non-qualified stock options to purchase 138,500 shares to seven new non-executive employees as per the 2021 Employment Inducement Incentive Award Plan.

What is the exercise price of the stock options issued by CRNX?

The exercise price of the stock options is $18.59 per share, reflecting the fair market value at the time of the grant.

How long will the stock options granted by Crinetics Pharmaceuticals vest?

The stock options will vest over four years, with 25% vesting on the one-year anniversary and the remainder vesting in monthly installments.

What is the purpose of the 2021 Employment Inducement Incentive Award Plan for CRNX?

The plan is designed to provide equity awards to new employees as an inducement to join the company.