Gossamer Bio Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Gossamer Bio, Inc. (NASDAQ: GOSS) granted non-executive employees stock options under the 2023 Inducement Plan. The options allow the purchase of up to 323,000 shares at $0.755 per share, vesting over four years. This grant aims to incentivize and retain new employees in accordance with Nasdaq rules.

Positive

• Granting stock options to new employees incentivizes them to stay with the company long-term.

• Inducement grants help attract top talent to Gossamer Bio, enhancing the company's workforce.

Negative

• The exercise price of $0.755 per share may be considered low, potentially diluting the value of existing shares.

• The vesting period of four years may lead to a long-term commitment from employees, but it also restricts their ability to sell shares in the short term.

SAN DIEGO--(BUSINESS WIRE)-- Gossamer Bio, Inc. (Nasdaq: GOSS), a clinical-stage biopharmaceutical company focused on the development and commercialization of seralutinib for the treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD), today announced that the Compensation Committee of Gossamer’s Board of Directors approved the grant, effective May 8, 2024, to three new non-executive employees of non-qualified stock option awards to purchase up to an aggregate of 323,000 shares of the Company’s common stock under the Gossamer Bio, Inc. 2023 Employment Inducement Incentive Award Plan (“2023 Inducement Plan”). The awards were granted as an inducement material to the employees entering into employment with Gossamer in accordance with Nasdaq Listing Rule 5635(c)(4).

The options have an exercise price of $0.755 per share, which is equal to the closing price of Gossamer’s common stock as reported by The Nasdaq Global Select Market on May 8, 2024. The options have a ten-year term and will vest over four years, with 25% vesting on the one-year anniversary of the applicable vesting commencement date and the balance of the shares vesting in a series of 36 successive monthly installments thereafter, subject to each employee’s continued employment with Gossamer on such vesting dates. The options are subject to the terms and conditions of the 2023 Inducement Plan and the terms and conditions of a stock option agreement covering the grants.

About Gossamer Bio

Gossamer Bio is a clinical-stage biopharmaceutical company focused on the development and commercialization of seralutinib for the treatment of pulmonary hypertension. Its goal is to be an industry leader in, and to enhance the lives of patients living with, pulmonary hypertension.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240510801953/en/

For Investors and Media:

Bryan Giraudo, Chief Operating Officer and Chief Financial Officer

Gossamer Bio Investor Relations

ir@gossamerbio.com

Source: Gossamer Bio, Inc.

FAQ

<p>What is the purpose of the inducement grant announced by Gossamer Bio?</p>

The grant aims to incentivize and retain new non-executive employees through stock options under the 2023 Inducement Plan.

<p>How many shares can be purchased through the inducement grant?</p>

Up to 323,000 shares of the company's common stock can be purchased through the grant.

<p>What is the exercise price of the options granted?</p>

The exercise price is $0.755 per share, equal to the closing price of Gossamer's common stock on May 8, 2024.

<p>How long is the vesting period for the stock options?</p>

The options will vest over four years, with 25% vesting on the one-year anniversary and the rest in monthly installments thereafter.

<p>What rule governs the grant of inducement options to employees at Gossamer Bio?</p>

The grant is made in accordance with Nasdaq Listing Rule 5635(c)(4) for inducement awards to new employees entering employment.