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

Rhea-AI Summary

Crinetics Pharmaceuticals (Nasdaq: CRNX) granted non-qualified stock options for 246,600 shares to 13 new employees on September 10, 2022, under the 2021 Inducement Plan. This plan incentivizes new hires and complies with Nasdaq's Listing Rule 5635(c)(4). The options have an exercise price of $21.03 per share, reflecting the common stock's fair market value on the grant date. Shares will vest over four years, with 25% vesting annually. Crinetics focuses on developing therapeutics for rare endocrine diseases and has ongoing clinical trials for multiple drug candidates.

Positive

• Stock options granted to 13 new employees may attract talent and enhance workforce stability.
• Options have an exercise price matching the fair market value, promoting alignment of employee and shareholder interests.

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• None.

SAN DIEGO, Sept. 12, 2022 (GLOBE NEWSWIRE) -- Crinetics Pharmaceuticals, Inc. (Nasdaq: CRNX) today announced that on September 10, 2022, the Compensation Committee of Crinetics’ Board of Directors granted non-qualified stock option awards to purchase an aggregate of 246,600 shares of its common stock to thirteen 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 $21.03 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, an investigational, oral somatostatin receptor type 5 (SST5) agonist for congenital hyperinsulinism, and for CRN04894, an investigational, oral 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 September 10, 2022?

Crinetics Pharmaceuticals granted non-qualified stock options for 246,600 shares to 13 new employees under the 2021 Inducement Plan.

What is the exercise price of the stock options granted by Crinetics?

The exercise price of the stock options is $21.03 per share, equal to the fair market value on the grant date.

How will the stock options vest for new employees at Crinetics?

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

What is the purpose of the 2021 Inducement Plan?

The plan grants equity awards to individuals who were not previously employed by Crinetics as an inducement to join the company.