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

Rhea-AI Summary

Dynavax Technologies Corporation (Nasdaq: DVAX) announced on February 2, 2022, the granting of nonstatutory stock options for 105,000 shares and restricted stock units (RSUs) covering 73,250 shares to 11 new employees. The stock options were priced at $12.65 per share, aligning with the market close on the grant date. Each option has a seven-year term and a three-year vesting schedule. These grants comply with Nasdaq Listing Rule 5635(c)(4) and are part of the 2021 Inducement Award Plan, aimed at incentivizing new hires as the company advances its vaccine development initiatives.

Positive

• Inducement grants may enhance employee retention and motivation.
• The pricing of stock options reflects the current market value, minimizing immediate dilution.

Negative

• Stock option grants may lead to potential dilution of existing shareholders' equity over time.

EMERYVILLE, Calif., Feb. 2, 2022 /PRNewswire/ -- Dynavax Technologies Corporation (Nasdaq: DVAX) today reported that it has granted nonstatutory stock options to purchase an aggregate of 105,000 shares of Dynavax common stock and restricted stock units (RSUs) covering an aggregate of 73,250 shares of Dynavax common stock as inducements to 11 newly-hired employees in connection with commencement of employment with the Company.

The stock options were granted on February 1, 2022 at an exercise price of $12.65 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 RSUs vest one-third per year on each anniversary of the grant date, subject to continued service with Dynavax. The options and the RSUs were granted as  material inducements 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 to help protect the world against infectious diseases. 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, plague, shingles, Tdap, seasonal influenza and universal influenza. For more information, visit www.dynavax.com and follow the company on LinkedIn.

Contacts:
Nicole Arndt, Investor Relations and Corporate Communications
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 is the significance of the stock options granted by Dynavax on February 1, 2022?

The stock options were granted as inducements to newly hired employees, aligning their interests with the company's performance.

What is the exercise price of the stock options granted by Dynavax?

The exercise price for the stock options is $12.65 per share.

How many shares were involved in the stock option and RSU grants by Dynavax?

Dynavax granted stock options for 105,000 shares and RSUs covering 73,250 shares.

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

The stock options vest one-third after one year, with the remainder vesting monthly over two years.

How do the inducement grants relate to Nasdaq regulations?

The grants comply with Nasdaq Listing Rule 5635(c)(4), which allows for inducements to new employees.