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

Rhea-AI Summary

Gossamer Bio (Nasdaq: GOSS), a clinical-stage biopharmaceutical firm, has announced an inducement grant under Nasdaq Listing Rule 5635(c)(4). The Compensation Committee of Gossamer's Board approved non-qualified stock options for a new non-executive employee, effective June 5, 2024. The grant includes options to purchase up to 170,000 shares at an exercise price of $0.57 per share, equivalent to the closing price on the Nasdaq Global Select Market on that date. These options have a ten-year term and will vest over four years: 25% after one year, with the remaining shares vesting in 36 monthly installments. These inducement awards aim to attract new talent under Gossamer's 2023 Employment Inducement Incentive Award Plan.

Positive

• Grant aimed to attract new talent, which could enhance company performance.
• Stock options priced at $0.57 per share, aligning with recent market value.
• Four-year vesting schedule incentivizes long-term employee commitment.

Negative

• Dilution risk for current shareholders due to the issuance of new stock options.
• Potential financial burden if stock options are exercised and stock price increases significantly.

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 June 5, 2024, to one new non-executive employee of non-qualified stock option awards to purchase up to an aggregate of 170,000 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 $0.57 per share, which is equal to the closing price of Gossamer’s common stock as reported by The Nasdaq Global Select Market on June 5, 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/20240607352857/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

What did Gossamer Bio announce on June 5, 2024?

Gossamer Bio announced an inducement grant of non-qualified stock options under Nasdaq Listing Rule 5635(c)(4).

How many shares are included in Gossamer Bio's inducement grant?

The inducement grant includes options to purchase up to 170,000 shares.

What is the exercise price for the Gossamer Bio stock options?

The exercise price for the stock options is $0.57 per share.

How long is the vesting period for the Gossamer Bio stock options?

The stock options will vest over four years: 25% after one year, with the remaining shares vesting in 36 monthly installments.

Under which plan were the Gossamer Bio stock options granted?

The stock options were granted under the 2023 Employment Inducement Incentive Award Plan.