Evelo Biosciences Announces Grant of Inducement Award

Rhea-AI Summary

Evelo Biosciences, Inc. (Nasdaq: EVLO) announced the appointment of Marella Thorell as Chief Financial Officer, effective September 1, 2022. As part of her compensation, she was granted an option to purchase 440,000 shares at an exercise price of $2.29, which is the closing price on her start date. The option will vest over four years, with 25% vesting after one year and the remainder in monthly installments. Evelo is focused on developing orally delivered therapies targeting the small intestinal axis, with promising candidates EDP1815 and EDP2939 aimed at treating inflammatory diseases.

Positive

• Appointment of Marella Thorell as CFO could enhance financial strategy.
• Stock option grant aligns CFO's interests with shareholders, promoting long-term performance.
• Continued development of EDP1815 and EDP2939 signifies progress in clinical trials.

Negative

• Company reported significant losses and is not currently profitable.
• Dependence on third parties for clinical trials and manufacturing may pose risks.
• Need for additional funding remains a concern amid ongoing development.

CAMBRIDGE, Mass., Sept. 01, 2022 (GLOBE NEWSWIRE) -- Evelo Biosciences, Inc. (Nasdaq: EVLO), a clinical stage biotechnology company developing a novel platform of orally delivered medicines acting on the small intestinal axis, SINTAX, today announced that on September 1, 2022, Marella Thorell commenced her services as Evelo’s Chief Financial Officer. In connection with the commencement of Ms. Thorell’s employment, the Company issued to Ms. Thorell an option to purchase 440,000 shares of the Company’s common stock with a per share exercise price of $2.29, the closing trading price of the Company’s common stock on the Nasdaq Global Select Market on September 1, 2022. The stock option was granted pursuant to the Company’s 2021 Employment Inducement Award Plan and was approved by the Company’s Board of Directors. The stock option vests (subject to Ms. Thorell’s continued service to the Company through the applicable vesting dates) 25% on September 1, 2023 and the remaining 75% in 36 substantially equal monthly installments over the three years thereafter and has a ten-year term. The stock option was granted under Rule 5635(c)(4) of the Nasdaq Listing Rules as an inducement material to Ms. Thorell’s entering into employment with the Company.

About Evelo Biosciences
Evelo Biosciences is a clinical stage biotechnology company developing a novel platform of orally delivered medicines acting on the small intestinal axis, SINTAX, with systemic therapeutic effects. SINTAX plays a central role in governing the immune, metabolic, and neurological systems. The Company’s product candidates are pharmaceutical preparations of single strains of microbes or their extracellular vesicles (EVs). Evelo’s vision is to create therapies that are effective, safe, well-tolerated, and affordable to improve the lives of the billions of people living with inflammatory diseases.

The Company is developing EDP1815, currently in late-stage development for psoriasis and atopic dermatitis, and EDP2939, about to enter the clinic to treat inflammatory diseases. Evelo is also advancing additional product candidates in other disease areas.

For more information, please visit www.evelobio.com and engage with Evelo on LinkedIn.

Forward Looking Statements

This press release contains forward-looking statements including within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements concerning the development of EDP1815 and EDP2939, the promise and potential impact of our product candidates, and the timing of and plans for clinical trials.

These forward-looking statements are based on management's current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the impact of the COVID-19 pandemic on our operations, including our preclinical studies and clinical trials, and the continuity of our business; we have incurred significant losses, are not currently profitable and may never become profitable; our need for additional funding; our limited operating history; our unproven approach to therapeutic intervention; the lengthy, expensive, and uncertain process of clinical drug development, including potential delays in regulatory approval; our reliance on third parties and collaborators to expand our microbial library, conduct our clinical trials, manufacture our product candidates, and develop and commercialize our product candidates, if approved; our lack of experience in manufacturing, selling, marketing, and distributing our product candidates; failure to compete successfully against other drug companies; protection of our proprietary technology and the confidentiality of our trade secrets; potential lawsuits for, or claims of, infringement of third-party intellectual property or challenges to the ownership of our intellectual property; our patents being found invalid or unenforceable; risks associated with international operations; our ability to retain key personnel and to manage our growth; the potential volatility of our common stock; our management and principal stockholders have the ability to control or significantly influence our business; costs and resources of operating as a public company; unfavorable or no analyst research or reports; and securities class action litigation against us.

These and other important factors discussed under the caption "Risk Factors" in our Quarterly Report on Form 10-Q for the period ended June 30, 2022, and our other reports filed with the U.S. Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management's estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, except as required by law, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Contacts

Investors:
Kendra Sweeney, 239-877-7474
ksweeney@evelobio.com

Media:
Jessica Cotrone, 978-760-5622
jcotrone@evelobio.com

FAQ

Who is the new CFO of Evelo Biosciences?

Marella Thorell has been appointed as the new CFO of Evelo Biosciences as of September 1, 2022.

What stock options were granted to Marella Thorell?

Marella Thorell received an option to purchase 440,000 shares at an exercise price of $2.29 per share.

What are Evelo's primary product candidates?

Evelo's main product candidates are EDP1815 for psoriasis and atopic dermatitis, and EDP2939 for inflammatory diseases.

When will Marella Thorell's stock options begin to vest?

The stock options will vest 25% after one year and the remaining 75% in monthly installments over the next three years.

What is the significance of Evelo's SINTAX platform?

SINTAX is a novel platform for developing orally delivered medicines that target the small intestinal axis with systemic therapeutic effects.