CTI BioPharma Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

CTI BioPharma Corp. (NASDAQ: CTIC) announced on February 7, 2023, the granting of equity inducement awards to three new employees. These awards, totaling options for 102,000 shares of common stock, are aimed at encouraging employee acceptance. The options will have an exercise price based on the closing price on their respective Grant Dates and will vest over four years, contingent on continued employment. This move complies with Nasdaq Listing Rule 5635(c)(4) and reflects CTI BioPharma's focus on retaining talent as it advances its pipeline, including the ongoing PACIFICA study for its FDA-approved product VONJO.

Positive

• Granting of 102,000 stock options indicates a commitment to attract and retain talent.
• Options vesting over four years aligns employee interests with shareholder value.
• Compliance with Nasdaq rules enhances company credibility.

Negative

• None.

SEATTLE, Feb. 7, 2023 /PRNewswire/ -- CTI BioPharma Corp. (NASDAQ: CTIC) today announced that an authorized subcommittee of the Compensation Committee of its Board of Directors granted equity awards to three new employees as equity inducement awards outside of the Company's Amended and Restated 2017 Equity Incentive Plan (but under the terms of the Amended and Restated 2017 Equity Incentive Plan) and material to the employees' acceptance of employment with the company. The equity awards were approved on February 7, 2023, in accordance with Nasdaq Listing Rule 5635(c)(4).

The employees received options to purchase an aggregate of 102,000 shares of CTI BioPharma common stock. The options will be issued upon each employee's grant date (the "Grant Date"), and all stock options included within the equity inducement awards will have an exercise price equal to the closing price of CTI BioPharma common stock on each respective Grant Date. One-fourth of the options will vest on each anniversary of the employee's Grant Date, subject to the employee's continued employment with CTI BioPharma on such vesting dates. The options have a ten-year term.

About CTI BioPharma Corp.

We are a commercial biopharmaceutical company focused on the acquisition, development and commercialization of novel targeted therapies for blood-related cancers that offer a unique benefit to patients and their healthcare providers. CTI has one FDA-approved product, VONJO^® (pacritinib), a JAK2 and IRAK1 inhibitor, that spares JAK1. VONJO is approved for the treatment of adults with intermediate- or high-risk primary or secondary (post-polycythemia vera or post-essential thrombocythemia) myelofibrosis with a platelet count below 50 × 10⁹/L. This indication is approved under FDA accelerated approval based on spleen volume reduction. Continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial(s). CTI is conducting the Phase 3 PACIFICA study of VONJO in patients with myelofibrosis and severe thrombocytopenia as a post-marketing requirement.

VONJO^® is a registered trademark of CTI BioPharma Corp.

Investor Relations and Media Contacts:

Remy Bernarda
Jenny Kobin
invest@ctibiopharma.com  

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SOURCE CTI BioPharma Corp.

FAQ

What equity awards were granted by CTI BioPharma on February 7, 2023?

CTI BioPharma granted equity inducement awards totaling options for 102,000 shares to three new employees.

What is the significance of Nasdaq Listing Rule 5635(c)(4) for CTI BioPharma?

This rule allows the company to issue equity inducement awards to attract new talent, ensuring compliance with regulatory standards.

How do the stock options granted to employees vest?

The stock options will vest at a rate of one-fourth each year, subject to the employee's continued employment.

What is VONJO and its relevance to CTI BioPharma?

VONJO is CTI BioPharma's FDA-approved product for treating myelofibrosis, which is significant for the company's revenue potential.