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

Rhea-AI Summary

Dynavax Technologies Corporation (Nasdaq: DVAX) announced the grant of nonstatutory stock options for 94,000 shares and restricted stock units (RSUs) for 2,500 shares to 5 newly-hired employees. The stock options were awarded on January 4, 2022, at an exercise price of $13.40, matching the closing stock price on that date. The stock options have a 7-year term and follow a vesting schedule of one-third after one year and the remainder monthly over two years. The RSUs will vest one-third annually. These grants were made to comply with Nasdaq Listing Rule 5635(c)(4).

Positive

• Inducement grants to new employees may enhance talent acquisition.
• The exercise price of $13.40 reflects the stock's market value, potentially indicating strong investor confidence.

Negative

• The stock option grants could dilute existing shareholder value.
• Continuation of employment is required for vesting, which may not guarantee retention of new hires.

EMERYVILLE, Calif., Jan. 7, 2022 /PRNewswire/ -- Dynavax Technologies Corporation (Nasdaq: DVAX) today reported that it has granted nonstatutory stock options to purchase an aggregate of 94,000 shares of Dynavax common stock and restricted stock units (RSUs) covering an aggregate of 2,500 shares of Dynavax common stock as inducements to 5 newly-hired employees in connection with commencement of employment with the Company.

The stock options were granted on January 4, 2022 at an exercise price of $13.40 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. 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, Tdap, 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 are Dynavax's recent stock option grants?

Dynavax granted stock options for 94,000 shares and RSUs for 2,500 shares to 5 new employees on January 4, 2022.

What is the exercise price of Dynavax's stock options?

The exercise price of the stock options is $13.40 per share.

How do the stock options at Dynavax vest?

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

What is the significance of NASDAQ Rule 5635(c)(4) for Dynavax?

NASDAQ Rule 5635(c)(4) allows for the issuance of stock options as inducements for employment.

When will the RSUs granted by Dynavax vest?

The RSUs vest one-third per year on each anniversary of the grant date.