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

Rhea-AI Summary

Dynavax Technologies (Nasdaq: DVAX) announced on May 4, 2021 that it granted nonstatutory stock options for 148,500 shares to seven newly-hired employees as an employment inducement. The options were awarded at an exercise price of $9.74 per share, equal to the stock's closing price on the grant date, May 3, 2021. These options have a 7-year term and vest over three years, with one-third vesting annually and remaining shares monthly. This initiative complies with Nasdaq Listing Rule 5635(c)(4) and is part of the 2021 Inducement Award Plan.

Positive

• Granting of 148,500 stock options may enhance employee retention and motivation.
• Stock options are equal to the closing price of the stock, indicating no immediate dilution.

Negative

• Stock options could lead to potential dilution for existing shareholders if exercised.

EMERYVILLE, Calif., May 4, 2021 /PRNewswire/ -- Dynavax Technologies Corporation (Nasdaq: DVAX) today reported that it has granted nonstatutory stock options to purchase an aggregate of 148,500 shares of Dynavax common stock as inducements to seven newly-hired employees in connection with commencement of employment with the Company.

The stock options were granted on May 3, 2021 at an exercise price of $9.74 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 employment 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 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

View original content to download multimedia:http://www.prnewswire.com/news-releases/dynavax-reports-inducement-grants-under-nasdaq-listing-rule-5635c4-301283645.html

SOURCE Dynavax Technologies

FAQ

What stock options did Dynavax grant on May 4, 2021?

Dynavax granted nonstatutory stock options to purchase 148,500 shares at an exercise price of $9.74.

Why did Dynavax grant stock options?

The options were provided as inducements for seven newly-hired employees.

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

The options vest over three years, with one-third vesting on the first anniversary.

What Nasdaq rule does Dynavax comply with for stock option grants?

Dynavax's stock option grants comply with Nasdaq Listing Rule 5635(c)(4).

What is the duration of the stock options granted by Dynavax?

The stock options have a term of seven years.