enGene Reports Inducement Grants Under NASDAQ Listing Rule 5635(c)(4)

Rhea-AI Summary

enGene Holdings (Nasdaq: ENGN) announced inducement equity awards for five new employees, granted on December 27, 2024. The awards include non-qualified stock options to purchase 97,400 common shares at an exercise price of $6.42 per share, matching the closing price on the grant date. The options have a 10-year term and will vest over four years, with 25% vesting after one year and the remainder vesting monthly over three years. These grants, approved by the Company's independent Compensation Committee, serve as employment inducements under NASDAQ Rule 5635(c)(4).

Positive

• Stock options granted as employment incentives demonstrate ability to attract new talent
• Four-year vesting schedule helps retain key employees

Negative

• Potential dilution of existing shareholders from 97,400 new stock options

Insights

Legal Expert

This stock option grant disclosure, while required by NASDAQ rules, has minimal material impact on enGene's financial position or market value. The total grant of 97,400 shares represents standard new hire equity compensation, with typical four-year vesting terms and exercise price at market value ($6.42 per share). The aggregate potential dilution is negligible relative to the company's market capitalization. These inducement grants are routine HR matters designed to align new employee interests with shareholders, following standard industry practices for biotech companies.

The terms - 25% first-year cliff vesting followed by monthly vesting over three years - reflect conventional retention-focused equity compensation structure. The exercise price matching the closing price on grant date ($6.42) ensures fair market value pricing in compliance with regulatory requirements.

BOSTON & MONTREAL--(BUSINESS WIRE)-- enGene Holdings Inc. (Nasdaq: ENGN, “enGene” or the “Company”), a clinical-stage genetic medicines company whose non-viral lead investigational product detalimogene voraplasmid, (also known as detalimogene, and previously EG-70), is in an ongoing pivotal study in patients with high-risk, Bacillus Calmette-Guérin (BCG)-unresponsive, non-muscle invasive bladder cancer (NMIBC) with carcinoma in situ (CIS), today reported the grant of inducement equity awards to five newly-hired employees, with a grant date of December 27, 2024.

The inducement awards consist of a non-qualified stock options to purchase an aggregate 97,400 of the Company's common shares. The options each have an exercise price of $6.42 per share, which is equal to the closing price of the Company's common shares on December 27, 2024, the date of grant. Each stock option has a 10-year term and will vest over four years, with 25% of the underlying shares vesting on the one-year anniversary of the employee’s employment commencement date and the remainder vesting in equal amounts monthly for three years thereafter, subject to the employee’s continued service as an employee of, or other service provider to, the Company through the applicable vesting dates.

The stock options were granted by the Company's independent Compensation Committee of the Board of Directors as an inducement material to each new employee entering into employment with the Company in accordance with NASDAQ Listing Rule 5635(c)(4). While the stock options were granted outside of the Company’s Amended and Restated enGene Holdings Inc. 2023 Incentive Equity Plan, each option will have terms and conditions consistent with those set forth under the Plan.

About enGene
enGene is a clinical-stage biotechnology company mainstreaming genetic medicines through the delivery of therapeutics to mucosal tissues and other organs, with the goal of creating new ways to address diseases with high clinical needs. enGene’s lead program is detalimogene voraplasmid (also known as detalimogene, and previously EG-70) for patients with Non-Muscle Invasive Bladder Cancer (NMIBC), a disease with a high clinical burden. Detalimogene is being evaluated in the ongoing multi-cohort LEGEND Phase 2 study, which includes a pivotal cohort studying detalimogene in Bacillus Calmette-Guérin (BCG)-unresponsive patients with carcinoma in situ (CIS). Detalimogene was developed using enGene’s proprietary Dually Derivatized Oligochitosan (DDX) platform, which enables penetration of mucosal tissues and delivery of a wide range of sizes and types of cargo, including DNA and various forms of RNA. For more information, visit enGene.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241230045097/en/

For media contact: media@engene.com

For investor contact: investors@engene.com

Source: enGene Holdings Inc.

FAQ

How many shares are included in ENGN's December 2024 inducement grants?

The inducement grants include stock options to purchase 97,400 common shares of enGene Holdings.

What is the exercise price for ENGN's December 2024 inducement stock options?

The exercise price is $6.42 per share, equal to the closing price of enGene's common shares on December 27, 2024.

What is the vesting schedule for ENGN's December 2024 inducement grants?

The options vest over four years, with 25% vesting after one year and the remainder vesting monthly over three years.

How long is the term of ENGN's December 2024 inducement stock options?

The stock options have a 10-year term.

How many employees received ENGN's December 2024 inducement grants?

Five newly-hired employees received the inducement grants.