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

Rhea-AI Summary

Evolus, a performance beauty company, announced the grant of stock options and restricted stock units (RSUs) to 9 newly hired non-executive employees. The grants consist of options to purchase 30,778 shares and 29,546 RSUs under the 2023 Inducement Incentive Plan.

The stock options, with an exercise price of $11.69, have a 10-year term and vest over 4 years, while the RSUs vest 25% annually over four years. These measures were taken as inducement for new employees, in line with Nasdaq Listing Rule 5635(c)(4).

Positive

• Granting of 30,778 stock options and 29,546 RSUs to attract new talent.
• Options have a 10-year term, offering long-term incentives.
• Exercise price of $11.69 aligns with the market closing price, indicating transparency.
• The vesting schedule encourages employee retention with 25% vesting annually over 4 years.

Negative

• The inducement grants could lead to shareholder dilution.
• Vesting and exercise of options are contingent on continuous employment, potentially limiting immediate benefits for new hires.
• No immediate financial gain for the company from these stock options and RSUs.

NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- Evolus, Inc. (NASDAQ: EOLS), a performance beauty company with a focus on building an aesthetic portfolio of consumer brands, today reported the grant of non-qualified stock options to purchase an aggregate of 30,778 shares of Evolus and an aggregate of 29,546 restricted stock units (RSUs) of the company’s common stock to 9 newly hired non-executive employees of the company. The awards were approved by the compensation committee of the company’s board of directors under the Evolus’ 2023 Inducement Incentive Plan, with a grant and vesting commencement date of June 7, 2024, as an inducement material to the new employees entering into employment with Evolus in accordance with Nasdaq Listing Rule 5635(c)(4).

The stock options have an exercise price of $11.69 per share, the closing price of Evolus’ common stock on the trading day preceding the date of grant. The stock options have a 10-year term and vest over 4 years, with 25% of the number of shares subject to the option vesting on each annual anniversary of the vesting commencement date. The RSUs vest 25% on each annual anniversary of the vesting commencement date. The awards are subject to the terms and conditions of the 2023 Inducement Incentive Plan and the terms and conditions of the stock option agreement or RSU agreement, as applicable, covering the grant, including requirements to remain continuously employed on each vesting date.

About Evolus, Inc.

Evolus (NASDAQ: EOLS) is a global performance beauty company evolving the aesthetic neurotoxin market for the next generation of beauty consumers through its unique, customer-centric business model and innovative digital platform. Our mission is to become a global, multi-product aesthetics company based on our flagship product, Jeuveau^® (prabotulinumtoxinA-xvfs), the first and only neurotoxin dedicated exclusively to aesthetics and manufactured in a state-of-the-art facility using Hi-Pure™ technology. Evolus is expanding its product portfolio having entered into a definitive agreement to be the exclusive U.S. distributor of Evolysse™, and the exclusive distributor in Europe of Estyme^®, a line of unique dermal fillers currently in late-stage development.

Visit us at www.evolus.com, and follow us on LinkedIn, X, Instagram or Facebook.

Jeuveau^® and Nuceiva^®, are registered trademarks and Evolysse^™ is a trademark of Evolus, Inc.
Hi-Pure^™ is a trademark of Daewoong Pharmaceutical Co, Ltd.
Estyme^® is a trademark of Symatese Aesthetics S.A.S.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240607153632/en/

Evolus Contacts:

Investors:

Nareg Sagherian

Vice President, Head of Global Investor Relations and Corporate Communications

Tel: 248-202-9267

Email: ir@evolus.com

Media:

Email: media@evolus.com

Source: Evolus

FAQ

What is the exercise price of Evolus (EOLS) stock options granted?

The exercise price of the stock options is $11.69 per share.

How many stock options did Evolus (EOLS) grant to new employees?

Evolus granted stock options to purchase 30,778 shares.

How many restricted stock units (RSUs) were granted by Evolus (EOLS)?

Evolus granted 29,546 restricted stock units (RSUs).

What is the vesting schedule for Evolus (EOLS) stock options?

The stock options vest over a 4-year period, with 25% vesting on each annual anniversary.

When is the vesting commencement date for Evolus (EOLS) inducement grants?

The vesting commencement date for the inducement grants is June 7, 2024.

What is the duration of the stock options granted by Evolus (EOLS)?

The stock options have a term of 10 years.

Under which plan were the Evolus (EOLS) inducement grants issued?

The inducement grants were issued under the 2023 Inducement Incentive Plan.

How many new employees did Evolus (EOLS) assign stock options and RSUs to?

Evolus assigned stock options and RSUs to 9 newly hired non-executive employees.