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

Rhea-AI Summary

Eledon Pharmaceuticals (NASDAQ: ELDN) announced the grant of inducement stock options to new employees covering 180,000 shares at an exercise price of $3.06, closing price on June 6, 2022. These options have a 10-year term and will vest over four years, with 25% vesting after one year. Eledon focuses on developing treatments for organ and cell transplantation, autoimmune diseases, and neurodegenerative disorders, primarily through its lead compound, tegoprubart, an anti-CD40L antibody targeting key therapeutic pathways.

Positive

• Granting of 180,000 stock options could attract talent, fostering company growth.
• Stock options at a fair market price may incentivize employee performance.

Negative

• Inducement stock options could dilute existing shareholders' equity.

IRVINE, Calif., June 10, 2022 (GLOBE NEWSWIRE) -- Eledon Pharmaceuticals, Inc. (“Eledon”) (NASDAQ: ELDN), a patient-focused clinical stage biopharmaceutical company committed to the development of innovative and impactful treatments for organ and cell transplantation, autoimmune conditions, and neurodegenerative disease, today announced that the Company’s Compensation Committee granted new employees inducement stock options to purchase an aggregate of 180,000 common shares, at a per share exercise price of $3.06, the closing price of Eledon’s common stock on June 6, 2022. The stock options were granted as inducements material to the new employees entering employment with Eledon in accordance with Nasdaq Listing Rule 5635(c)(4).

The inducement stock options have a ten-year term and vest over four years, with 25% of the shares subject to the option vesting twelve months from the grant date, and the remainder vesting an additional 6.25% of the shares underlying the option at the end of each full three calendar month period thereafter, subject to the relevant employee's continued service with Eledon on the applicable vesting date.

About Eledon Pharmaceuticals and tegoprubart (formerly AT-1501)

Eledon Pharmaceuticals is a clinical stage biotechnology company using its expertise in targeting the CD40 Ligand (CD40L, also called CD154) pathway to develop potential treatments for persons requiring an organ or cell-based transplant, living with autoimmune disease, or living with ALS. The company’s lead compound in development is tegoprubart, an anti-CD40L antibody with high affinity for CD40 Ligand, a well-validated biological target with broad therapeutic potential. Eledon is headquartered in Irvine, Calif. For more information, please visit the company’s website at www.eledon.com.

Follow Eledon Pharmaceuticals on social media: LinkedIn; Twitter

Investor Contact:

Stephen Jasper
Gilmartin Group
(858) 525-2047
stephen@gilmartinir.com

FAQ

What are the stock options granted by Eledon Pharmaceuticals on June 10, 2022?

Eledon Pharmaceuticals granted 180,000 inducement stock options with an exercise price of $3.06.

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

The stock options vest over four years, with 25% vesting after one year and the remaining vesting at 6.25% every three months thereafter.

How does Eledon Pharmaceuticals plan to utilize the inducement stock options?

The stock options are intended to attract and retain new employees, aligning their interests with shareholders.

What is Eledon's main therapeutic focus?

Eledon focuses on developing treatments for organ and cell transplantation, autoimmune diseases, and neurodegenerative disorders.

What is the significance of the exercise price for the stock options at Eledon Pharmaceuticals?

The exercise price of $3.06 reflects the closing stock price on June 6, 2022, ensuring employees have a fair entry point.