Crinetics Pharmaceuticals Announces June 2024 Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Crinetics Pharmaceuticals announced on June 10, 2024, that its Compensation Committee granted non-qualified stock options to purchase a total of 158,000 shares to nine new non-executive employees. This is part of the company's 2021 Employment Inducement Incentive Award Plan, designed to attract new talent. The stock options, priced at $45.01 per share, will vest over four years. The plan follows Nasdaq Listing Rule 5635(c)(4), offering equity awards to new employees as a material inducement for joining Crinetics.

Positive

• Granted 158,000 stock options to new employees, potentially boosting morale and retention.
• Stock options priced at $45.01, reflecting the current market value.
• Vesting schedule designed to encourage long-term employment, with 25% vesting after one year and the rest over 36 months.
• Compliance with Nasdaq Listing Rule 5635(c)(4), ensuring regulatory adherence.

Negative

• Stock option grants could lead to potential dilution of existing shares over time.
• The exercise price of $45.01 could be seen as high, possibly deterring less optimistic investors.
• Long vesting period might not immediately motivate new employees, affecting short-term productivity.

SAN DIEGO, June 10, 2024 (GLOBE NEWSWIRE) -- Crinetics Pharmaceuticals, Inc. (Nasdaq: CRNX) today announced that on June 10, 2024, the Compensation Committee of Crinetics’ Board of Directors granted non-qualified stock option awards to purchase an aggregate of 158,000 shares of its common stock to nine 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 $45.01 per share, which is equal to the closing price of Crinetics’ common stock on The Nasdaq Global Select Market on June 10, 2024. 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 endocrine diseases and endocrine-related tumors. Paltusotine, an investigational, first-in-class, oral somatostatin receptor type 2 (SST2) agonist, is in Phase 3 clinical development for acromegaly and in Phase 2 clinical development for carcinoid syndrome associated with neuroendocrine tumors. Crinetics is also developing atumelnant (CRN04894), an investigational, first-in-class, oral ACTH antagonist, that is currently completing Phase 2 clinical studies for the treatment of congenital adrenal hyperplasia and Cushing’s disease. All of the company’s drug candidates are orally delivered, small molecule new chemical entities resulting from in-house drug discovery efforts, including additional discovery programs addressing a variety of endocrine conditions such as hyperparathyroidism, polycystic kidney disease, Graves’ disease, thyroid eye disease, diabetes and obesity.

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

Media:
Natalie Badillo
Head of Corporate Communications
nbadillo@crinetics.com
(858) 450-6464

FAQ

What did Crinetics Pharmaceuticals announce on June 10, 2024?

Crinetics Pharmaceuticals announced the grant of non-qualified stock options to purchase 158,000 shares to nine new non-executive employees.

What is the stock option exercise price set by Crinetics Pharmaceuticals?

The exercise price for the stock options is $45.01 per share.

How many shares are included in the Crinetics Pharmaceuticals stock option grant?

The grant includes 158,000 shares.

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

25% of the shares vest after one year, with the remaining shares vesting over 36 successive monthly installments.

Under which plan were the Crinetics Pharmaceuticals stock options granted?

The stock options were granted under the 2021 Employment Inducement Incentive Award Plan.

Why were the stock options granted by Crinetics Pharmaceuticals?

The stock options were granted as an inducement for new employees to join Crinetics, following Nasdaq Listing Rule 5635(c)(4).