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

Rhea-AI Summary

Crinetics Pharmaceuticals (Nasdaq: CRNX) announced on February 10, 2023, that its Board of Directors granted non-qualified stock options for an aggregate of 90,000 shares to six new non-executive employees. This issuance is part of the 2021 Employment Inducement Incentive Award Plan, designed to attract non-previously employed individuals to the company. The options have an exercise price of $19.60, equal to the closing stock price on the grant date, and will vest over four years. This initiative is in compliance with Nasdaq Listing Rule 5635(c)(4) and aims to bolster talent acquisition in the clinical stage pharmaceutical sector.

Positive

• Granting of 90,000 stock options to attract six new non-executive employees.
• Exercise price set at $19.60, aligning with market value to incentivize employees.

Negative

• None.

SAN DIEGO, Feb. 10, 2023 (GLOBE NEWSWIRE) -- Crinetics Pharmaceuticals, Inc. (Nasdaq: CRNX), a clinical stage pharmaceutical company focused on the discovery, development and commercialization of novel therapeutics for rare endocrine diseases and endocrine-related tumors, today announced that on February 10, 2023, the Compensation Committee of Crinetics’ Board of Directors granted non-qualified stock option awards to purchase an aggregate of 90,000 shares of its common stock to six 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 $19.60 per share, which is equal to the closing price of Crinetics’ common stock on The Nasdaq Global Select Market on February 10, 2023. 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, an investigational, oral 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, an investigational, oral somatostatin receptor type 5 (SST5) agonist in development for congenital hyperinsulinism, and for CRN04894, an investigational, oral ACTH antagonist in development 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
Vice President of IR and 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 was announced by Crinetics Pharmaceuticals on February 10, 2023?

Crinetics Pharmaceuticals announced the granting of non-qualified stock options to six new non-executive employees.

How many shares were granted in stock options by Crinetics Pharmaceuticals?

An aggregate of 90,000 shares were granted in stock options.

What is the exercise price for the stock options granted by Crinetics Pharmaceuticals?

The exercise price for the stock options is $19.60 per share.

What is the vesting schedule for the granted stock options at Crinetics Pharmaceuticals?

The stock options will vest over four years, with 25% vesting after one year and the remainder vesting monthly.

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

The plan aims to attract new employees who were not previously employed by Crinetics.