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

Rhea-AI Summary

CTI BioPharma Corp. (NASDAQ: CTIC) disclosed on October 17, 2022, that its Compensation Committee granted equity inducement awards totaling 25,500 stock options to two new employees. These grants were made outside the company's Amended and Restated 2017 Equity Incentive Plan, per Nasdaq Listing Rule 5635(c)(4). Each option’s exercise price corresponds to the stock’s closing price on the respective Grant Date, with a vesting schedule of one-fourth annually, contingent on continued employment. The options carry a ten-year term.

Positive

• Granting of 25,500 stock options indicates company growth and employee retention efforts.
• Compliance with Nasdaq Listing Rule 5635(c)(4) enhances corporate governance.

Negative

• None.

SEATTLE, Oct. 17, 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 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 October 17, 2022, in accordance with Nasdaq Listing Rule 5635(c)(4).

The employees received options to purchase an aggregate of 25,500 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 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.

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 October 17, 2022?

CTI BioPharma granted equity inducement awards totaling 25,500 stock options to two new employees.

How are the stock options for CTI BioPharma employees structured?

The options have an exercise price based on the closing stock price on the Grant Date and vest one-fourth annually.

What rule did CTI BioPharma follow for the equity awards?

CTI BioPharma's grants were in accordance with Nasdaq Listing Rule 5635(c)(4).

What is the term length for the stock options issued by CTI BioPharma?

The stock options have a ten-year term.