Eterna Therapeutics Grants New President and CEO Sanjeev Luther Inducement Award Under Nasdaq Listing Rule 5635 (c)(4)

Rhea-AI Summary

Eterna Therapeutics Inc. (Nasdaq: ERNA) granted a non-qualified stock option to its new President and CEO, Sanjeev Luther, to purchase 1,685,218 shares of common stock at an exercise price of $1.80 per share. The stock option will vest over four years, subject to Mr. Luther's continued service to the company.

CAMBRIDGE, Mass., Jan. 03, 2024 (GLOBE NEWSWIRE) -- Eterna Therapeutics Inc. (Nasdaq: ERNA) (“Eterna” or the “Company”), a life science company committed to realizing the potential of mRNA cell engineering to provide patients with transformational new medicines, today announced that Eterna’s Board of Directors granted a non-qualified stock option to purchase 1,685,218 shares of Eterna’s common stock (the “Stock Option”) to its new President and Chief Executive Officer, Sanjeev Luther, effective January 1, 2024, the first date of his employment. The Stock Option was granted pursuant to the terms of Mr. Luther’s employment agreement and as a material inducement to his joining Eterna as President and Chief Executive Officer in accordance with Nasdaq Listing Rule 5635(c)(4).

The Stock Option has an exercise price of $1.80 per share, which is equal to the fair market value of Eterna’s common stock on The Nasdaq Capital Market on the date of the Stock Option grant. The Stock Option will vest over four years, with 25% of the shares vesting on the first anniversary of the grant date and the remaining 75% of the shares vesting in equal monthly installments over the three years thereafter. Vesting of the stock options is subject to Mr. Luther’s continued service to Eterna on each vesting date.

About Eterna Therapeutics Inc.
Eterna Therapeutics is a life science company committed to realizing the potential of mRNA cell engineering to provide patients with transformational new medicines. Eterna has in-licensed a portfolio of over 130 patents covering key mRNA cell engineering technologies, including technologies for mRNA cell reprogramming, mRNA gene editing, the NoveSlice™ and UltraSlice™ gene-editing proteins, and the ToRNAdo™ mRNA delivery system from Factor Bioscience. NoveSlice™, UltraSlice™, and ToRNAdo™ are trademarks of Factor Bioscience. For more information, please visit www.eternatx.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are any statements that are not statements of historical fact and may be identified by terminology such as “believe,” “could,” “estimate,” “anticipate,” “expect,” “plan,” “possible,” “potential,” “project,” “will” or other similar words and the negatives of such words. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those stated or implied in any forward-looking statement as a result of various factors, including, but not limited to, uncertainties related to: (i) the evolution of Eterna’s business model into a platform company focused on mRNA, induced pluripotent stem (iPS) cell and gene editing technologies; (ii) Eterna’s ability to successfully, cost-effectively and efficiently develop its technology and products; (iii) Eterna’s ability to successfully commence clinical trials of any products on a timely basis or at all; (iv) Eterna’s ability to successfully fund and manage the growth of its development activities; and (v) Eterna’s ability to obtain regulatory approvals of its products for commercialization. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements made in this communication speak only as of the date on which they were made, and Eterna does not undertake any obligation to update the forward-looking statements contained herein to reflect events that occur or circumstances that exist after the date hereof, except as required by applicable law. Factors that may cause Eterna’s actual results to differ from those expressed or implied in forward-looking statements contained in this press release are more fully disclosed in Eterna’s periodic public filings with the U.S. Securities and Exchange Commission, particularly under the heading “Risk Factors” in Eterna’s Annual Report on Form 10-K for the year ended December 31, 2022, as well as under similar headings in Eterna’s subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Investor Relations Contact:
investors@eternatx.com

Media Contact:
EternaPR@westwicke.com

FAQ

What did Eterna Therapeutics Inc. (ERNA) announce?

Eterna Therapeutics Inc. (ERNA) announced the granting of a non-qualified stock option to its new President and CEO, Sanjeev Luther, to purchase 1,685,218 shares of common stock.

How many shares are included in the stock option granted to Sanjeev Luther?

The stock option granted to Sanjeev Luther includes 1,685,218 shares of common stock.

What is the exercise price of the stock option?

The exercise price of the stock option is $1.80 per share.

How will the stock option vest?

The stock option will vest over four years, with 25% of the shares vesting on the first anniversary of the grant date and the remaining 75% vesting in equal monthly installments over the three years thereafter.