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

Rhea-AI Summary

Fusion Pharmaceuticals Inc. (Nasdaq: FUSN) announced stock option awards for 44,800 shares to two new employees, compliant with Nasdaq Listing Rule 5635(c)(4). The options have an exercise price of $2.36 per share, equal to the closing price on August 1, 2022, and will vest over four years. Fusion, a clinical-stage oncology company, is advancing its pipeline of radiopharmaceuticals targeting various cancer-related receptors and is collaborating with AstraZeneca and Merck for drug development and manufacturing capabilities.

Positive

• Inducement grants may attract quality talent.
• Ongoing collaborations with AstraZeneca and Merck could enhance future drug development.

Negative

• Stock options may dilute existing shareholders' equity.

HAMILTON, ON and BOSTON, Aug. 2, 2022 /PRNewswire/ -- Fusion Pharmaceuticals Inc. (Nasdaq: FUSN), a clinical-stage oncology company focused on developing next-generation radiopharmaceuticals as precision medicines, today announced that the compensation committee of the Company's Board of Directors granted stock option awards to purchase an aggregate of 44,800 shares of its common stock to two employees outside Fusion's 2020 Stock Option and Incentive Plan. The stock options were granted as an inducement material to the individual becoming an employee of Fusion in accordance with Nasdaq Listing Rule 5635(c)(4).

The options have an exercise price of $2.36 per share, which is equal to the closing price of Fusion's common stock on August 1, 2022. Each option has a ten-year term and vests over four years, with 25% of the original number of shares vesting on the one-year anniversary of the grant date and then in equal installments for 36 months thereafter, subject to the employee's continued service with Fusion through the applicable vesting dates.

About Fusion
Fusion Pharmaceuticals is a clinical-stage oncology company focused on developing next-generation radiopharmaceuticals as precision medicines. Fusion connects alpha particle emitting isotopes to various targeting molecules in order to selectively deliver the alpha emitting payloads to tumors. Fusion's lead program, FPI-1434 targeting insulin-like growth factor 1 receptor, is currently in a Phase 1 clinical trial. The pipeline includes FPI-1966, targeting the fibroblast growth factor receptor 3 (FGFR3), currently in a Phase 1 study following the investigational new drug (IND) clearance; and FPI-2059, a small molecule targeting neurotensin receptor 1 (NTSR1), also currently in a Phase 1 study. In addition to a robust proprietary pipeline, Fusion has a collaboration with AstraZeneca to jointly develop novel targeted alpha therapies (TATs) and combination programs between Fusion's TATs and AstraZeneca's DNA Damage Repair Inhibitors (DDRis) and immuno-oncology agents. Fusion has also entered into a collaboration with Merck to evaluate FPI-1434 in combination with Merck's KEYTRUDA® (pembrolizumab) in patients with solid tumors expressing IGF-1R. Fusion and Hamilton, Ontario-based McMaster University are building a current Good Manufacturing Practice (GMP) compliant radiopharmaceutical manufacturing facility designed to support manufacturing of the Company's growing pipeline of TATs.

For further information: Amanda Cray, Senior Director of Investor Relations & Corporate Communications, 617-967-0207, cray@fusionpharma.com

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SOURCE Fusion Pharmaceuticals Inc.

FAQ

What stock options did Fusion Pharmaceuticals grant?

Fusion Pharmaceuticals granted stock options to purchase 44,800 shares at an exercise price of $2.36.

When were the stock options granted by Fusion Pharmaceuticals?

The stock options were granted on August 2, 2022.

What is the purpose of the stock options granted by Fusion Pharmaceuticals?

The options were granted as an inducement material to the individuals becoming employees of Fusion.

How long is the term for the stock options granted by Fusion Pharmaceuticals?

Each stock option has a ten-year term.

What is the significance of Nasdaq Listing Rule 5635(c)(4) for Fusion Pharmaceuticals?

This rule allows Fusion to grant stock options as an inducement to new employees.