Geron Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Geron , a biopharmaceutical company, announced inducement grants under Nasdaq Listing Rule 5635(c)(4). The company granted non-statutory stock options for 222,660 shares to new employees as of June 19, 2024. The exercise price is $4.49 per share, equal to the closing price of Geron stock on the grant date. These options have a 10-year term and vest over four years, with 12.5% vesting after six months and the remainder vesting in equal installments over 42 months, subject to continued employment. The grants are part of Geron's 2018 Inducement Award Plan.

Positive

• None.

Negative

• The grant of 222,660 stock options may lead to potential shareholder dilution.
• The vesting period extends over four years, which can delay the benefit realization for employees.

FOSTER CITY, Calif.--(BUSINESS WIRE)-- Geron Corporation (Nasdaq: GERN), a commercial stage biopharmaceutical company, today reported that it has granted non-statutory stock options to purchase an aggregate of 222,660 shares of Geron common stock as inducements to newly hired employees in connection with commencement of employment with the Company.

The stock options were granted on June 19, 2024, at an exercise price of $4.49 per share, which is equal to the closing price of Geron common stock on the date of grant*. The stock options have a 10-year term and vest over four years, with 12.5% of the shares underlying the options vesting on the six-month anniversary of commencement of employment for the respective employees and the remaining shares vesting over the following 42 months in equal installments of whole shares, subject to continued employment with Geron through the applicable vesting dates. All of the stock options were granted as a material inducement to employment in accordance with Nasdaq Listing Rule 5635(c)(4) and are subject to the terms and conditions of the stock option agreements covering the grants and Geron’s 2018 Inducement Award Plan, which was adopted December 14, 2018, and provides for the granting of stock options to new employees.

* Since the NASDAQ Stock Market was closed for trading on the date of grant, the exercise price has been set based on the closing price of the common stock on the previous trading day in accordance with the terms of Geron’s 2018 Inducement Award Plan.

About Geron

Geron is a commercial-stage biopharmaceutical company aiming to change lives by changing the course of blood cancer. Our first-in-class telomerase inhibitor RYTELO™ (imetelstat) is FDA-approved for the treatment of adult patients with lower-risk MDS with transfusion dependent anemia. We are also conducting a pivotal Phase 3 clinical trial of imetelstat in JAK-inhibitor relapsed/refractory myelofibrosis (R/R MF), as well as studies in other hematologic malignancies. Inhibiting telomerase activity, which is increased in malignant stem and progenitor cells in the bone marrow, aims to potentially reduce proliferation and induce death of malignant cells. To learn more, visit www.geron.com or follow us on LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240620840001/en/

Aron Feingold

Vice President, Investor Relations and Corporate Communications

Kristen Kelleher

Associate Director, Investor Relations and Corporate Communications

investor@geron.com

media@geron.com

Source: Geron Corporation

FAQ

What are the details of Geron's stock option grants announced on June 19, 2024?

Geron granted non-statutory stock options for 222,660 shares at an exercise price of $4.49 per share. The options have a 10-year term and vest over four years.

How do Geron's stock options vest?

The stock options vest over four years, with 12.5% vesting after six months and the remaining shares vesting in equal installments over the next 42 months.

What is the exercise price of Geron's newly granted stock options?

The exercise price is $4.49 per share, which is equal to the closing price of Geron stock on the grant date.

Why did Geron grant stock options on June 19, 2024?

The stock options were granted as inducements to newly hired employees under Nasdaq Listing Rule 5635(c)(4).

What is the term of Geron's stock options granted in 2024?

The stock options have a 10-year term.