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

Rhea-AI Summary

CTI BioPharma Corp. (NASDAQ: CTIC) announced on December 20, 2022, that its Compensation Committee approved equity inducement awards for three new employees. These awards consist of options to purchase a total of 33,000 shares of common stock, with the exercise price equal to the stock's closing price on each Grant Date. The options will vest annually over four years, contingent on continued employment. This decision complies with Nasdaq Listing Rule 5635(c)(4) and aims to enhance employee retention and incentivize performance.

Positive

• Equity inducement grants could improve employee retention.
• Stock options have a ten-year term, providing long-term incentives.

Negative

• None.

SEATTLE, Dec. 20, 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 December 20, 2022, in accordance with Nasdaq Listing Rule 5635(c)(4).

The employees received options to purchase an aggregate of 33,000 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.

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 December 20, 2022?

CTI BioPharma granted equity inducement awards consisting of options to purchase 33,000 shares of common stock.

How do the equity awards align with Nasdaq rules?

The equity awards were granted in accordance with Nasdaq Listing Rule 5635(c)(4) to incentivize new employees.

What is the vesting schedule for the options granted by CTIC?

The options will vest one-fourth annually on each anniversary of the Grant Date, subject to continued employment.

What is the purpose of CTI BioPharma's equity inducement awards?

The purpose is to enhance employee retention and incentivize performance.