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

Rhea-AI Summary

Crinetics Pharmaceuticals (Nasdaq: CRNX) announced the granting of non-qualified stock options to twelve new non-executive employees on December 10, 2022. Under the 2021 Employment Inducement Incentive Award Plan, a total of 356,300 shares were awarded with an exercise price of $16.26, reflecting the fair market value at the time of the grant. These options will vest over four years, encouraging employee retention. This move aligns with Nasdaq Listing Rule 5635(c)(4), which allows for equity awards to induce employment for new hires.

Positive

• Granting of 356,300 stock options to new employees enhances talent acquisition and retention.
• Equity awards are aligned with Nasdaq regulations, ensuring compliance.

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• None.

SAN DIEGO, Dec. 12, 2022 (GLOBE NEWSWIRE) -- Crinetics Pharmaceuticals, Inc. (Nasdaq: CRNX) today announced that on December 10, 2022, the Compensation Committee of Crinetics’ Board of Directors granted non-qualified stock option awards to purchase an aggregate of 356,300 shares of its common stock to twelve 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 $16.26 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 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 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: 
Investor Relations
IR@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 December 12, 2022?

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

How many shares were granted as stock options to new employees at Crinetics?

A total of 356,300 shares were granted as stock options.

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

The exercise price of the stock options is $16.26 per share.

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

The plan is designed to grant equity awards as an inducement for new employees to join Crinetics.

What are the vesting terms for the stock options granted at Crinetics?

The options will vest over four years, with 25% vesting after one year and the rest in monthly installments.