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

Rhea-AI Summary

CTI BioPharma Corp. (NASDAQ: CTIC) announced on May 27, 2022, that its Compensation Committee approved equity inducement awards for three new employees, granting options to purchase a total of 94,000 shares of common stock. The options will be priced at the closing stock price on each employee's grant date, with a vesting schedule of 25% on each anniversary and a term of 10 years. This move complies with Nasdaq Listing Rule 5635(c)(4), aimed at enhancing employee retention and attraction, crucial for the company's focus on novel therapies for blood-related cancers.

Positive

• Awarding equity inducement grants may enhance employee retention and recruitment.
• Equity options tied to company stock can align employee interests with shareholders.

Negative

• None.

SEATTLE, May 27, 2022 /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 May 27, 2022, in accordance with Nasdaq Listing Rule 5635(c)(4).

The employees received options to purchase an aggregate of 94,000 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, 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 27, 2022?

CTI BioPharma granted equity inducement awards for options to purchase 94,000 shares of common stock.

What is the vesting schedule for the equity options granted by CTI BioPharma?

The options will vest 25% on each anniversary of the grant date.

What is the term of the equity options granted by CTI BioPharma?

The equity options have a term of 10 years.

How does the equity inducement comply with Nasdaq rules?

The grants comply with Nasdaq Listing Rule 5635(c)(4), allowing for equity inducements to enhance employment acceptance.

What is the purpose of the equity inducement awards at CTI BioPharma?

The awards aim to improve employee retention and recruitment, critical for the company's growth.