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

Rhea-AI Summary

Gritstone bio, Inc. (Nasdaq: GRTS) announced the grant of nonqualified stock options for 14,800 shares to five new employees, with an exercise price of $4.90, equal to the closing price on the grant date of March 17, 2022. These options vest over four years, starting with 25% after one year. This measure aligns with Nasdaq Listing Rule 5635(c)(4) as an inducement for new hires. Gritstone is focused on developing immunotherapies for cancer and infectious diseases using its AI-based platform and is also advancing clinical studies for its leading oncology and infectious disease programs.

Positive

• Nonqualified stock options granted to five new employees may enhance recruitment and retention efforts.
• Options vesting over four years could align employee interests with company performance.

Negative

• None.

EMERYVILLE, Calif., March 30, 2022 (GLOBE NEWSWIRE) -- Gritstone bio, Inc. (Nasdaq: GRTS), a clinical-stage biotechnology company developing the next generation of cancer and infectious disease immunotherapies, today announced that the company’s Board of Directors has granted five employees nonqualified stock options to purchase an aggregate of 14,800 shares of its common stock with an exercise price of $4.90, which is equal to the closing price of Gritstone’s common stock on March 17, 2022, the grant date of the awards. These stock grants are part of an inducement material to each of the new employees becoming an employee of Gritstone, in accordance with Nasdaq Listing Rule 5635(c)(4).

The stock options will vest over a four-year period, with 25% of the options vesting on the first anniversary of the employees’ date of hire, and 1/48th of the options vesting monthly thereafter, subject to the employees’ continued employment with Gritstone on such vesting dates. The options are subject to the terms and conditions of Gritstone’s 2021 Employment Inducement Incentive Award Plan and the stock option agreement covering the grant.

About Gritstone
Gritstone bio, Inc. (Nasdaq: GRTS), a clinical-stage biotechnology company, is developing the next generation of immunotherapies against multiple cancer types and infectious diseases. Gritstone develops its products by leveraging two key pillars—first, a proprietary artificial intelligence-based platform, Gritstone EDGE™, which is designed to predict antigens that are presented on the surface of cells, such as tumor or virally-infected cells, that can be seen by the immune system; and, second, the ability to develop and manufacture potent immunotherapies utilizing these antigens to potentially drive the patient’s immune system to specifically attack and destroy disease-causing cells. The company’s lead oncology programs include an individualized neoantigen-based immunotherapy, GRANITE, and an “off-the-shelf” shared neoantigen-based immunotherapy, SLATE, which are being evaluated in clinical studies. Within its infectious disease pipeline, Gritstone is advancing CORAL, a program delivering T cell enhanced self-amplifying mRNA (samRNA) vaccines for COVID-19 that is supported by departments within the National Institutes of Health (NIH), the Bill & Melinda Gates Foundation, the Coalition for Epidemic Preparedness Innovations (CEPI) and through a license agreement with La Jolla Institute for Immunology. Additionally, the company has a global collaboration for the development of a therapeutic HIV vaccine with Gilead Sciences. For more information, please visit www.gritstonebio.com.

Gritstone Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements related to the potential of Gritstone’s therapeutic programs, the advancements in Gritstone’s ongoing clinical trials and the timing of data announcements related to ongoing clinical trials and the initiation of future clinical trials. Such forward-looking statements involve substantial risks and uncertainties that could cause Gritstone’s research and clinical development programs, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the uncertainties inherent in the drug development process, including Gritstone’s programs’ early stage of development, the process of designing and conducting preclinical and clinical trials, the regulatory approval processes, the timing of regulatory filings, the challenges associated with manufacturing drug products, Gritstone’s ability to successfully establish, protect and defend its intellectual property and other matters that could affect the sufficiency of existing cash to fund operations. Gritstone undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gritstone in general, see Gritstone’s most recent Annual Report on Form 10-K filed on March 10, 2022 and Gritstone’s future reports to be filed with the Securities and Exchange Commission. The forward-looking statements in this press release are based on information available to Gritstone as of the date hereof. Gritstone disclaims any obligation to update any forward-looking statements, except as required by law.

Gritstone Contacts
Media:
Dan Budwick
1AB
(973) 271-6085
dan@1abmedia.com

Investors:
George E. MacDougall
Director, Investor Relations & Corp Comms
Gritstone bio, Inc.
IR@gritstone.com

FAQ

What stock options were granted by Gritstone bio on March 30, 2022?

Gritstone bio granted nonqualified stock options for 14,800 shares with an exercise price of $4.90.

What is the purpose of the stock options granted to employees of Gritstone bio?

The options serve as an inducement for new employees to join Gritstone, in accordance with Nasdaq Listing Rule 5635(c)(4).

How long will the stock options from Gritstone bio vest?

The stock options will vest over a four-year period.

What is the significance of the exercise price of $4.90 for Gritstone bio's stock options?

The exercise price of $4.90 is equal to the stock's closing price on the grant date, March 17, 2022.

What are Gritstone bio's main areas of focus in immunotherapy?

Gritstone bio focuses on developing immunotherapies for various cancers and infectious diseases using an AI-based platform.