Dynavax Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

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Dynavax Technologies (Nasdaq: DVAX) announced on August 3, 2021, the granting of stock options to purchase 438,000 shares to 44 new employees. The options, granted on August 2, 2021, have an exercise price of $9.45 per share, aligning with the closing stock price on that date. Each option has a 7-year term and vests over three years, with one-third vesting after one year. This action complies with Nasdaq Listing Rule 5635(c)(4) aimed at incentivizing new hires.

EMERYVILLE, Calif., Aug. 3, 2021 /PRNewswire/ -- Dynavax Technologies Corporation (Nasdaq: DVAX) today reported that it has granted nonstatutory stock options to purchase an aggregate of 438,000 shares of Dynavax common stock as inducements to 44 newly-hired employees in connection with commencement of employment with the Company.

The stock options were granted on August 2, 2021 at an exercise price of $9.45 per share, which is equal to the closing price of Dynavax common stock on the date of grant. Each stock option granted has a 7-year term and vests over three years, with one-third of the shares underlying the option vesting on the one-year anniversary of the grant date, and the remaining shares vesting 1/36 per month in equal installments, subject to continued service with Dynavax through the applicable vesting dates. The options were granted as a material inducement to employment in accordance with Nasdaq Listing Rule 5635(c)(4) and are subject to the terms and conditions of a stock option agreement covering the grant and Dynavax' 2021 Inducement Award Plan, which was adopted January 9, 2021 and provides for the granting of stock options to new employees.

About Dynavax
Dynavax is a commercial stage biopharmaceutical company developing and commercializing novel vaccines. The Company's first commercial product, HEPLISAV-B® [Hepatitis B Vaccine (Recombinant), Adjuvanted], is approved in the U.S. and the European Union for prevention of infection caused by all known subtypes of hepatitis B virus in adults age 18 years and older. Dynavax is also advancing CpG 1018 adjuvant as a premier vaccine adjuvant through research collaborations and partnerships. Current collaborations are focused on adjuvanted vaccines for COVID-19, pertussis and universal influenza. For more information, visit www.dynavax.com and follow the company on LinkedIn.

Dynavax Contacts:

Nicole Arndt, Senior Manager, Investor Relations
narndt@dynavax.com 
510-665-7264

Derek Cole, President
Investor Relations Advisory Solutions
derek.cole@IRadvisory.com

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SOURCE Dynavax Technologies

FAQ

What did Dynavax Technologies announcement on August 3, 2021, entail?

Dynavax announced the grant of stock options to 44 new employees, totaling 438,000 shares at an exercise price of $9.45 each.

What is the vesting schedule for the stock options granted by Dynavax?

The options vest over three years, with one-third vesting on the first anniversary of the grant date, and the remainder vesting monthly over the following 24 months.

Why did Dynavax grant stock options to new employees?

The stock options were granted as inducements for employment, in accordance with Nasdaq Listing Rule 5635(c)(4).

What is the term for the stock options granted by Dynavax?

The stock options have a term of 7 years.

What is the relevance of Nasdaq Listing Rule 5635(c)(4) to Dynavax's stock options?

This rule allows companies to grant stock options as a material inducement for new employees, supporting talent acquisition and retention strategies.