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

Rhea-AI Summary

On May 5, 2022, CTI BioPharma Corp. (NASDAQ: CTIC) announced the grant of equity inducement awards to two new employees, totaling options for 207,500 shares of common stock. Approved on May 4, 2022, these awards are part of compliance with Nasdaq Listing Rule 5635(c)(4). The stock options will have an exercise price equal to the closing price on the grant date and will vest over four years, contingent on the employees' continued employment. CTI is focused on developing targeted therapies for blood-related cancers and has one FDA-approved product, VONJO™, for treating myelofibrosis.

Positive

• Granting of equity awards can attract and retain talent.
• Alignment of employee interests with company performance through stock options.

Negative

• None.

SEATTLE, May 5, 2022 /PRNewswire/ -- CTI BioPharma Corp. (NASDAQ: CTIC) today announced that the Compensation Committee of its Board of Directors granted equity awards to two 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 May 4, 2022, in accordance with Nasdaq Listing Rule 5635(c)(4).

The employees received options to purchase an aggregate of 207,500 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, 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. 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 trademark of CTI BioPharma Corp.

CTI BioPharma Investor Contacts:
Argot Partners
+212-600-1902
cti@argotpartners.com

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SOURCE CTI BioPharma Corp.

FAQ

What equity awards did CTI BioPharma grant on May 5, 2022?

CTI BioPharma granted equity inducement awards totaling options for 207,500 shares of common stock to two new employees.

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

This rule allows the company to grant equity inducement awards to attract new employees while maintaining compliance with Nasdaq regulations.

What is VONJO™ and what does it treat?

VONJO™ (pacritinib) is an FDA-approved treatment for adults with intermediate or high-risk myelofibrosis with a platelet count below 50 × 10⁹/L.

How are the stock options structured for the new employees at CTI BioPharma?

The stock options will vest one-fourth each year over four years, subject to the employees' continued employment.