89bio Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

89bio announced the approval of inducement grants under Nasdaq Listing Rule 5635(c)(4) by its Compensation Committee. The grants, totaling 25,500 shares of common stock, were extended to two new employees on June 10, 2024, as part of the company's 2023 Inducement Plan. The exercise price for these stock options matches 89bio's closing stock price on the grant date. These grants will vest over four years, with 25% vesting after one year, followed by quarterly vesting contingent upon continued employment.

Positive

• Approved inducement grants of 25,500 shares to new employees, potentially attracting high-caliber talent.
• Grants are aligned with Nasdaq Listing Rule 5635(c)(4), ensuring regulatory compliance.
• Vesting schedule incentivizes employee retention over four years.

Negative

• Dilution of existing shareholders' equity due to issuance of new shares.
• Potential financial burden if the company stock price does not perform well.

SAN FRANCISCO, June 14, 2024 (GLOBE NEWSWIRE) -- 89bio, Inc. (the “Company” or “89bio”) (Nasdaq: ETNB), a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapies for the treatment of liver and cardiometabolic diseases, today announced that the Compensation Committee of the Company’s Board of Directors approved the grant of non-qualified stock options to purchase an aggregate of 25,500 shares of the Company’s common stock to two new employees (the “Inducement Grants”) on June 10, 2024 (the “Grant Date”). The Inducement Grants have been granted pursuant to the Company’s 2023 Inducement Plan (the “Plan”). The Inducement Grants were granted as an inducement material to these individuals entering into employment with 89bio in accordance with Nasdaq Listing Rule 5635(c)(4).

The Inducement Grants have an exercise price per share that is equal to the closing price of 89bio’s common stock on the Grant Date. The Inducement Grants will vest over a four-year period, with 25% of the shares vesting on the one-year anniversary of the employee’s start date, and thereafter the remainder of the shares vest in 12 equal quarterly installments, subject to each employee’s continued employment with 89bio through the applicable vesting dates.

About 89bio
89bio is a clinical-stage biopharmaceutical company dedicated to the development of best-in-class therapies for patients with liver and cardiometabolic diseases who lack optimal treatment options. The company is focused on rapidly advancing its lead candidate, pegozafermin, through clinical development for the treatment of metabolic dysfunction-associated steatohepatitis (MASH) and severe hypertriglyceridemia (SHTG). Pegozafermin is a specifically engineered, potentially best-in-class fibroblast growth factor 21 (FGF21) analog with unique glycoPEGylated technology that optimizes biological activity through an extended half-life. The company is headquartered in San Francisco. For more information, visit www.89bio.com or follow the company on LinkedIn.

Investor Contact:
Annie Chang
89bio, Inc.
investors@89bio.com

PJ Kelleher
LifeSci Advisors, LLC
+1-617-430-7579
pkelleher@lifesciadvisors.com

Media Contact:
Sheryl Seapy
Real Chemistry
sseapy@realchemistry.com

FAQ

What are the inducement grants announced by 89bio?

89bio announced the approval of inducement grants totaling 25,500 shares of common stock to two new employees under Nasdaq Listing Rule 5635(c)(4).

When were the inducement grants by 89bio approved?

The inducement grants were approved on June 10, 2024.

What is the vesting schedule for the inducement grants by 89bio?

The inducement grants vest over four years, with 25% after one year, followed by 12 equal quarterly installments.

What is the exercise price for 89bio's inducement grants?

The exercise price equals the closing price of 89bio's common stock on the grant date.

Why did 89bio issue these inducement grants?

The inducement grants were issued to attract and retain new talent, aligning with Nasdaq Listing Rule 5635(c)(4).