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

Rhea-AI Summary

On July 10, 2024, Gritstone bio announced the issuance of nonqualified stock options to a new employee. The options permit the purchase of 39,000 common shares at $0.57 per share, matching the closing price on July 3, 2024. This grant is an inducement for the new hire, aligning with Nasdaq Listing Rule 5635(c)(4). The options will vest over four years, with 25% vesting after one year and the remainder vesting monthly over the next three years, contingent on continued employment. These options are governed by Gritstone’s 2021 Employment Inducement Incentive Award Plan.

Positive

• Granted stock options may improve employee retention by aligning incentives.
• Vesting schedule encourages long-term employee commitment, potentially leading to increased productivity.

Negative

• Stock options could dilute existing shareholders' equity.

EMERYVILLE, Calif., July 10, 2024 (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 Compensation Committee of the company’s Board of Directors granted one employee nonqualified stock options to purchase an aggregate of 39,000 shares of its common stock with an exercise price of $0.57, which is equal to the closing price of Gritstone’s common stock on July 3, 2024, the date of the grant. These stock options are part of an inducement material to 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 bio
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 bio Contacts
Investors:
George E. MacDougall
Gritstone bio, Inc.
ir@gritstone.com

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

FAQ

What did Gritstone bio announce on July 10, 2024?

Gritstone bio announced the issuance of nonqualified stock options to a new employee as an inducement under Nasdaq Listing Rule 5635(c)(4).

What is the exercise price for the Gritstone bio stock options granted?

The exercise price for the stock options is $0.57 per share, the closing price on July 3, 2024.

How many shares are covered by the Gritstone bio stock options granted?

The stock options cover 39,000 shares of Gritstone bio common stock.

What is the vesting schedule for the Gritstone bio stock options granted on July 10, 2024?

The stock options will vest over four years, with 25% vesting after one year and the remainder vesting monthly over the next three years.

What rule does the Gritstone bio stock option grant comply with?

The grant complies with Nasdaq Listing Rule 5635(c)(4).

What is the ticker symbol for Gritstone bio?

The ticker symbol for Gritstone bio is GRTS.