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

Rhea-AI Summary

Gritstone bio, Inc. (Nasdaq: GRTS) announced the granting of nonqualified stock options to eight employees, totaling 240,250 shares, at an exercise price of $7.29, equal to the closing stock price on August 11, 2021. These grants are part of an inducement for new hires and will vest over four years. The company is advancing immunotherapy programs for cancer and infectious diseases, including an individualized neoantigen-based treatment and a second-generation COVID-19 vaccine. The press release also includes forward-looking statements about ongoing clinical trials and potential risks involved.

Positive

• Granting of 240,250 stock options may enhance employee retention and alignment with company objectives.
• Ongoing development of innovative immunotherapies for cancer and infectious diseases positions the company favorably in the biotech sector.

Negative

• The reliance on clinical trial outcomes introduces significant risks and uncertainties in drug development.
• Potential challenges in regulatory approval processes and intellectual property protection could hinder progress.

EMERYVILLE, Calif., Aug. 16, 2021 (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 Compensation Committee of the company’s Board of Directors has granted eight employees nonqualified stock options to purchase an aggregate of 240,250 shares of its common stock with an exercise price of $7.29, which is equal to the closing price of Gritstone’s common stock on August 11, 2021, 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 1/48^th 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 machine learning-based platform, Gritstone EDGE^TM, 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 COVID-19 program to develop a second-generation vaccine, with support from departments within the National Institutes of Health (NIH), the Bill & Melinda Gates Foundation, 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 gritstone.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 the company’s ongoing clinical trials; 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 the company in general, see Gritstone’s most recent Quarterly Report on Form 10-Q filed on August 5, 2021 and any current and periodic reports filed with the Securities and Exchange Commission.

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

Investors:
Celia Economides
Chief Financial Officer
celia@gritstone.com

FAQ

What stock options were granted by Gritstone bio (GRTS) on August 16, 2021?

Gritstone bio granted nonqualified stock options to purchase 240,250 shares at an exercise price of $7.29.

What is the vesting schedule for the stock options granted by GRTS?

The options will vest over four years, with 25% vesting on the first anniversary of hire and the remainder vesting monthly thereafter.

What are Gritstone bio's main immunotherapy programs mentioned in the press release?

The main programs include GRANITE, an individualized neoantigen-based immunotherapy, and SLATE, a shared neoantigen-based immunotherapy.

What significant risks are associated with Gritstone bio’s therapeutic programs?

Risks include uncertainties in drug development, regulatory approval processes, and potential challenges in manufacturing and intellectual property.

When was the stock option grant date for Gritstone bio (GRTS)?

The grant date for the stock options was August 11, 2021.