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

Rhea-AI Summary

Freeline Therapeutics Holdings plc (Nasdaq: FRLN) announced on December 6, 2021, that it granted stock options to its new Chief Medical Officer, Pamela Foulds, MD, and another employee. The total options issued were 240,000 and 7,200 shares respectively. This grant, compliant with Nasdaq Listing Rule 5635(c)(4), serves as a material inducement for the new hires. The options have an exercise price of $2.38 per share, with a ten-year maximum term and a four-year vesting schedule. Freeline is focused on advanced AAV-mediated gene therapies for severe inherited diseases.

Positive

• Granting of stock options may enhance employee retention and motivation.
• Compliance with Nasdaq regulations supports corporate governance.
• AAV-mediated gene therapy has potential for significant market impact.

Negative

• None.

LONDON, Dec. 06, 2021 (GLOBE NEWSWIRE) -- Freeline Therapeutics Holdings plc (Nasdaq: FRLN) (the “Company” or “Freeline”), a clinical-stage biotechnology company developing transformative AAV-mediated gene therapies for patients suffering from inherited systemic debilitating diseases, today announced that on November 30, 2021, the Company granted its newly hired Chief Medical Officer, Pamela Foulds, MD, and another newly hired employee non-statutory options to purchase an aggregate of 240,000 and 7,200 of the Company’s ordinary shares, respectively 

The awards were granted as an inducement material to the employees entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4) and were approved by an independent subcommittee of the remuneration committee of Freeline’s board of directors. The awards were granted pursuant to the terms of Freeline’s 2021 Equity Inducement Plan, which was adopted by Freeline’s board of directors in September 2021.

Each of the options has an exercise price of $2.38 per share, which was the closing price of Freeline’s American Depositary Shares reported by Nasdaq on November 29, 2021, the last trading day preceding the grant date. The options have a maximum 10-year term and vest over a four-year service period, with 25% of the award vesting on the first anniversary of the vesting commencement date, with the balance vesting monthly over the remaining three years.

About Freeline Therapeutics

Freeline is a clinical-stage biotechnology company developing transformative adeno-associated virus (“AAV”) vector-mediated systemic gene therapies. The Company is dedicated to improving patient lives through innovative, one-time treatments that provide functional cures for inherited systemic debilitating diseases. Freeline uses its proprietary, rationally-designed AAV vector, along with novel promoters and transgenes, to deliver a functional copy of a therapeutic gene into human liver cells, thereby expressing a persistent functional level of the missing or dysfunctional protein into the patient’s bloodstream. The Company’s integrated gene therapy platform includes in-house capabilities in research, clinical development, manufacturing and commercialization. The Company has clinical programs in Hemophilia B and Fabry disease, as well as preclinical programs in Gaucher disease Type 1 and Hemophilia A. Freeline is headquartered in the UK and has operations in Germany and the US.

Contact

David S. Arrington
Vice President Investor Relations & Corporate Communications
Freeline Therapeutics
david.arrington@freeline.life 
+1 (646) 668 6947

FAQ

What stock options did Freeline grant on December 6, 2021?

Freeline granted stock options totaling 240,000 shares to its CMO Pamela Foulds and 7,200 shares to another employee.

What is the exercise price for the options granted by Freeline?

The exercise price for the options is $2.38 per share.

What is the vesting schedule for the stock options granted by Freeline?

The options vest over a four-year period, with 25% vesting on the first anniversary and the remainder vesting monthly.

Is the stock option grant by Freeline compliant with Nasdaq regulations?

Yes, the grant complies with Nasdaq Listing Rule 5635(c)(4).

What is Freeline Therapeutics known for?

Freeline is known for developing AAV-mediated gene therapies for inherited systemic debilitating diseases.