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

Rhea-AI Summary

CTI BioPharma Corp. (NASDAQ: CTIC) announced the granting of equity awards to three new employees on February 24, 2021, outside of the Company's Amended 2017 Equity Incentive Plan. The awards include options to purchase a total of 92,000 shares at an exercise price of $3.18, the closing price on the grant date. These options will vest over four years, contingent on continued employment. This move aligns with Nasdaq Listing Rule 5635(c)(4) and highlights CTI's commitment to attracting talent as it focuses on developing novel therapies for blood-related cancers.

Positive

• Equity awards granted to new employees may enhance talent acquisition.
• Inducement awards signal strong commitment to employee retention.

Negative

• None.

SEATTLE, Feb. 24, 2021 /PRNewswire/ -- CTI BioPharma Corp. (NASDAQ: CTIC) today announced that the Compensation Committee of its Board of Directors granted equity awards to three new employees with a grant date of February 24, 2021, 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 24, 2021, in accordance with Nasdaq Listing Rule 5635(c)(4).

The employees received options to purchase an aggregate of 92,000 shares of CTI BioPharma common stock.  The options have an exercise price of $3.18, which is equal to the closing price of CTI BioPharma common stock on February 24, 2021, the grant date of the awards. One-fourth of the options will vest on each anniversary of the employee's date of hire, 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 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. We concentrate our efforts on treatments that target blood-related cancers where there is an unmet medical need. In particular, we are focused on evaluating pacritinib, our sole product candidate currently in active late-stage development, for the treatment of adult patients with myelofibrosis. In addition, we have recently started developing pacritinib for use in hospitalized patients with severe COVID-19, in response to the COVID-19 pandemic. We are headquartered in Seattle, Washington.

CTI BioPharma Investor Contacts:
Maeve Conneighton/Maghan Meyers
+212-600-1902
cti@argotpartners.com

 

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SOURCE CTI BioPharma Corp.

FAQ

What equity awards were granted by CTI BioPharma on February 24, 2021?

CTI BioPharma granted options to purchase 92,000 shares of common stock at $3.18 each.

Why did CTI BioPharma grant equity awards outside of its 2017 Equity Incentive Plan?

The equity awards were provided as inducement awards to attract new employees, as per Nasdaq Listing Rule 5635(c)(4).

What is the exercise price of the options granted by CTI BioPharma?

The exercise price for the options is $3.18, which matches the closing stock price on the grant date.

How will the options granted to employees vest?

The options will vest at a rate of one-fourth on each anniversary of the employee's hire date.