Precision BioSciences Announces Grant of Inducement Awards Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

On May 13, 2024, Precision BioSciences announced the grant of inducement awards to new employees, approved by the Compensation Committee of its Board of Directors. These awards, given under the 2021 Employment Inducement Incentive Award Plan, include stock options for 18,511 shares and 17,124 restricted stock units (RSUs). Each stock option has an exercise price of $11.50 per share, a 10-year term, and vests over four years. The RSUs vest annually over three years. These awards are intended to attract new talent to the company.

Positive

• Stock options for 18,511 shares granted, potentially aligning new employee interests with shareholder value.
• 17,124 RSUs awarded, providing long-term incentives for new employees.
• Stock options have a 10-year term, offering long-term value opportunity.
• Vesting schedules designed to encourage long-term commitment from employees.

Negative

• No immediate revenue or profit impact from inducement awards.
• Potential shareholder dilution due to issuance of new stock options and RSUs.
• Future expenses related to these stock options and RSUs may impact financials.

DURHAM, N.C.--(BUSINESS WIRE)-- Precision BioSciences, Inc. (Nasdaq: DTIL), an advanced gene editing company utilizing its novel proprietary ARCUS® platform to develop in vivo gene editing therapies for sophisticated gene edits, including gene insertion, excision, and elimination, today announced that, on May 13, 2024, the Compensation Committee of Precision’s Board of Directors approved the grant of inducement awards to new employees under the Precision BioSciences, Inc. 2021 Employment Inducement Incentive Award Plan (“Inducement Award Plan”). The inducement awards consist of an option to purchase (“stock option”) 18,511 shares of Precision’s common stock, par value $0.000005 (the “Common Stock”), which was granted to an employee in connection with their commencement of employment, as well as an aggregate total of 17,124 restricted stock units (“RSUs”), granted among three employees in connection with their commencement of employment. Each award was granted under Nasdaq Listing Rule 5635(c)(4) as an inducement for the employees to commence service with Precision.

The stock option has a per share exercise price equal to the fair market value of Precision’s Common Stock on May 13, 2024, which was equal to $11.50. The stock option has a 10-year term and vests (subject to continued service to Precision through the applicable vesting dates) as to 25% of the award on the first anniversary of the date of the commencement of their employment and, as to the remaining 75%, in substantially equal quarterly installments over the three years thereafter. Each employee’s RSUs vest (subject to continued service to Precision through the applicable vesting dates) in substantially equal annual installments on each of the first three anniversaries of the date of the commencement of such individual’s employment.

About Precision BioSciences, Inc.

Precision BioSciences, Inc. is an advanced gene editing company dedicated to improving life (DTIL) with its novel and proprietary ARCUS® genome editing platform that differs from other technologies in the way it cuts, its smaller size, and its simpler structure. Key capabilities and differentiating characteristics may enable ARCUS nucleases to drive more intended, defined therapeutic outcomes. Using ARCUS, the Company’s pipeline is comprised of in vivo gene editing candidates designed to deliver lasting cures for the broadest range of genetic and infectious diseases where no adequate treatments exist. For more information about Precision BioSciences, please visit www.precisionbiosciences.com.

The ARCUS® platform is being used to develop in vivo gene editing therapies for sophisticated gene edits, including gene insertion (inserting DNA into gene to cause expression/add function), elimination (removing a genome e.g. viral DNA or mutant mitochondrial DNA), and excision (removing a large portion of a defective gene by delivering two ARCUS nucleases in a single AAV).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240517597841/en/

Investor and Media Contact:

Naresh Tanna

Vice President, Investor Relations

Naresh.Tanna@precisionbiosciences.com

Source: Precision BioSciences, Inc.

FAQ

What inducement awards did Precision BioSciences grant on May 13, 2024?

Precision BioSciences granted stock options for 18,511 shares and 17,124 RSUs as inducement awards.

What is the exercise price of the stock options granted by Precision BioSciences?

The exercise price of the stock options is $11.50 per share.

How long is the term for the stock options granted by Precision BioSciences?

The stock options have a 10-year term.

What is the vesting schedule for the new stock options awarded by Precision BioSciences?

The stock options vest 25% on the first anniversary and the remaining 75% in equal quarterly installments over the next three years.

How do the RSUs granted by Precision BioSciences vest?

The RSUs vest in substantially equal annual installments over three years.

What is the purpose of the inducement awards granted by Precision BioSciences?

The inducement awards aim to attract and retain new talent.