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

Rhea-AI Summary

DermTech announced the grant of restricted stock units (RSUs) to eight new employees, representing the right to receive up to 40,510 shares of common stock. This decision, effective March 28, 2023, was made under the 2022 Inducement Equity Incentive Plan. The RSUs will vest over four years, with 25% vesting on March 5, 2024 and the remaining 75% vesting quarterly until March 5, 2027, contingent on continued employment. DermTech focuses on precision dermatology using non-invasive genomic analysis to improve skin cancer detection and treatment.

Positive

• Grant of 40,510 restricted stock units to attract new talent.
• Vesting schedule incentivizes employee retention over four years.

Negative

• None.

SAN DIEGO--(BUSINESS WIRE)-- DermTech, Inc. (NASDAQ: DMTK) (“DermTech” or the “Company”), a leader in precision dermatology enabled by a non-invasive skin genomics platform, today announced the grant to eight new employees of restricted stock units representing the contingent right to receive up to an aggregate of 40,510 shares of the Company’s common stock under its 2022 Inducement Equity Incentive Plan, as amended, or the 2022 Inducement Plan. The restricted stock units were approved by DermTech’s Compensation Committee, effective March 28, 2023, and were granted as inducements material to the employee’s acceptance of employment with DermTech in accordance with Nasdaq Listing Rule 5635(c)(4).

The 40,510 restricted stock units shall vest over 4 years as follows: (i) twenty-five percent of the restricted stock units will vest on March 5, 2024 and (ii) the remaining seventy-five percent of the restricted stock units will vest in equal quarterly installments until fully vested on March 5, 2027, subject to the employee’s continued employment with the Company on these vesting dates. The restricted stock units are also subject to the terms and conditions of the 2022 Inducement Plan, and the terms and conditions of the equity award agreements covering the grants.

About DermTech

DermTech is a leading genomics company in dermatology and is creating a new category of medicine, precision dermatology, enabled by its non-invasive skin genomics platform. DermTech’s mission is to improve the lives of millions by providing non-invasive precision dermatology solutions that enable individualized care. DermTech provides genomic analysis of skin samples collected non-invasively using our Smart Stickers™. DermTech markets and develops products that facilitate the early detection of skin cancers and is developing products that assess inflammatory diseases and customize drug treatments. For additional information, please visit DermTech.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of DermTech may differ from its actual results and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” "outlook," “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, expectations and evaluations with respect to: the performance, patient benefits, cost- effectiveness, commercialization and adoption of DermTech’s products and the market opportunity for these products. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside of the control of DermTech and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the outcome of any legal proceedings that may be instituted against DermTech; (2) DermTech’s ability to obtain additional funding to develop and market its products; (3) the existence of favorable or unfavorable clinical guidelines for DermTech’s tests; (4) the reimbursement of DermTech’s tests by Medicare and commercial payors; (5) the ability of patients or healthcare providers to obtain coverage of or sufficient reimbursement for DermTech’s products; (6) DermTech’s ability to grow, manage growth and retain its key employees; (7) changes in applicable laws or regulations; (8) the market adoption and demand for DermTech’s products and services together with the possibility that DermTech may be adversely affected by other economic, business, and/or competitive factors; and (9) other risks and uncertainties included in the “Risk Factors” section of the most recent Annual Report on Form 10-K filed by DermTech with the Securities and Exchange Commission (the “SEC”), and other documents filed or to be filed by DermTech with the SEC, including subsequently filed reports. DermTech cautions that the foregoing list of factors is not exclusive. You should not place undue reliance upon any forward- looking statements, which speak only as of the date made. DermTech does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230403005812/en/

Steve Kunszabo

DermTech

(858) 291-1647

steve.kunszabo@dermtech.com

Source: DermTech, Inc.

FAQ

What is the significance of DermTech's restricted stock unit grant?

DermTech granted restricted stock units to eight new employees to enhance recruitment efforts, allowing them to acquire up to 40,510 shares of common stock.

When will the restricted stock units for DermTech vest?

The restricted stock units will vest over four years, with 25% vesting on March 5, 2024, and the remaining 75% vesting quarterly until March 5, 2027.

What is DermTech's focus in the medical field?

DermTech specializes in precision dermatology, utilizing non-invasive genomic analysis for early skin cancer detection and treatment customization.

How many shares are included in DermTech's stock grant?

The stock grant includes a total of 40,510 shares under the 2022 Inducement Equity Incentive Plan.