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

Rhea-AI Summary

On September 20, 2022, Gritstone bio, Inc. (Nasdaq: GRTS) announced that its Board of Directors granted nonqualified stock options for 12,400 shares to three new employees at an exercise price of $3.59, equal to the stock's closing price on September 9, 2022. These options will vest over four years to incentivize employee retention, with 25% vesting after the first year and the remainder vesting monthly. The grant aligns with Nasdaq Listing Rule 5635(c)(4) and is part of Gritstone's 2021 Employment Inducement Incentive Award Plan.

Positive

• Inducement grants help attract and retain talent.
• Stock options offered at market price ($3.59) can motivate employees to align their interests with shareholders.

Negative

• None.

EMERYVILLE, Calif., Sept. 20, 2022 (GLOBE NEWSWIRE) -- Gritstone bio, Inc. (Nasdaq: GRTS), a clinical-stage biotechnology company that aims to develop the world’s most potent vaccines, today announced that the company’s Board of Directors granted three employees nonqualified stock options to purchase an aggregate of 12,400 shares of its common stock with an exercise price of $3.59, which is equal to the closing price of Gritstone’s common stock on September 9, 2022, the last trading day preceding the grant date of the awards. These stock options 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 stock 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) is a clinical-stage biotechnology company that aims to develop the world’s most potent vaccines. We leverage our innovative vectors and payloads to train multiple arms of the immune system to attack critical disease targets. Independently and with our collaborators, we are advancing a portfolio of product candidates to treat and prevent viral diseases and solid tumors in pursuit of improving patient outcomes and eliminating disease. 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; 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’ clinical 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 Annual Report on Form 10-K filed on March 10, 2022, as well as Gritstone’s Quarterly Reports on Form 10-Q filed on May 5, 2022 and August 4, 2022 and any current and periodic reports 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
Investors:
George E. MacDougall
Director, Investor Relations & Corp Comms
Gritstone bio, Inc.
ir@gritstone.com

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

FAQ

What are the details of Gritstone bio's stock option grant announced on September 20, 2022?

Gritstone bio announced a stock option grant of 12,400 shares to three employees at an exercise price of $3.59, with options vesting over four years.

How does the stock option grant affect Gritstone bio's employees?

The stock option grant serves as an incentive for employee retention, aligning their interests with company performance.

What is the significance of the exercise price of $3.59 for Gritstone bio's stock options?

The exercise price of $3.59 is equal to the stock's closing price on September 9, 2022, ensuring options are granted at market value.

Which Nasdaq rule does Gritstone bio's stock option grant comply with?

The grant complies with Nasdaq Listing Rule 5635(c)(4), which allows inducement grants to new employees.

What is the vesting schedule for the stock options granted by Gritstone bio?

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