G1 Therapeutics Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

G1 Therapeutics (Nasdaq: GTHX) announced on June 5, 2024, the granting of inducement stock options and restricted stock units (RSUs) to one newly hired employee under its Amended and Restated 2021 Inducement Equity Incentive Plan. The grants include 4,650 stock options exercisable at $3.23 per share, the closing price of GTHX stock on June 3, 2024, and 2,400 RSUs. The stock options vest over four years with a ten-year term, while the RSUs vest over four years with 25% vesting after one year and the remainder semi-annually over three years. These awards follow Nasdaq Listing Rule 5635(c)(4) and are intended as an inducement for the new employee's employment.

Positive

• Granting of inducement stock options and RSUs aligns with Nasdaq Listing Rule 5635(c)(4), potentially enhancing employee motivation and retention.
• Stock options and RSUs vest over four years, encouraging long-term employee commitment.
• Stock options priced at $3.23 per share, reflecting market value on the grant date.

Negative

• The issuance of new stock options and RSUs could lead to shareholder dilution.
• Long vesting periods might not immediately yield productivity benefits.

RESEARCH TRIANGLE PARK, N.C., June 05, 2024 (GLOBE NEWSWIRE) -- G1 Therapeutics, Inc. (Nasdaq: GTHX), a commercial-stage oncology company, today announced the grant of inducement stock options exercisable for 4,650 shares of G1’s common stock and 2,400 restricted stock units (RSUs) to one hired employee under the Amended and Restated G1 Therapeutics, Inc. 2021 Inducement Equity Incentive Plan (the “Amended and Restated 2021 Plan”). These equity awards were granted as an inducement material to the new employee becoming an employee of G1 in accordance with Nasdaq Listing Rule 5635(c)(4).

The Amended and Restated 2021 Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of G1 (or following a bona fide period of non-employment), as an inducement material to such individual’s entering into employment with G1, pursuant to Rule 5635(c)(4) of the Nasdaq Listing Rules.

The stock options are exercisable at a price of $3.23 per share, the closing price of G1’s common stock on June 3, 2024, the grant date. The stock options have up to a ten-year term and vest over four years, with 25% of the award vesting on the first anniversary of the employee’s employment, and as to an additional 1/48th of the shares monthly thereafter, subject to continued service through the applicable vesting dates (subject to the terms and conditions of the stock option agreement covering the grant). The RSUs have a four-year term, with 25% of the award vesting on the first anniversary of the grant date, and the remainder vesting 12.5% semi-annually over the remaining three years, subject to continued service through the applicable vesting dates (subject to the terms and conditions of the RSU agreement covering the grant). The stock options and RSUs are subject to the terms and conditions of the Amended and Restated 2021 Plan.

About G1 Therapeutics
G1 Therapeutics, Inc. is a commercial-stage oncology biopharmaceutical company whose mission is to develop and deliver next-generation therapies that improve the lives of those affected by cancer, including the Company’s first commercial product, COSELA® (trilaciclib). The Company is also evaluating therapies in combination with cytotoxic therapies and/or immunotherapy in areas of high unmet need including triple-negative breast cancer and extensive stage small cell lung cancer. G1’s goal is to provide innovative therapeutic advances for people living with cancer. G1 is based in Research Triangle Park, N.C. For additional information, please visit http://www.g1therapeutics.com and follow us on X (formerly known as Twitter) @G1Therapeutics and LinkedIn.

G1 Therapeutics® and the G1 Therapeutics logo and COSELA® and the COSELA logo are trademarks of G1 Therapeutics, Inc.

Contact:

Will Roberts
Communications Officer
Vice President, Investor Relations and Corporate Communications
(919) 907-1944
wroberts@g1therapeutics.com

FAQ

What is the significance of G1 Therapeutics' inducement stock options announcement on June 5, 2024?

G1 Therapeutics announced the grant of inducement stock options and RSUs to a new employee to comply with Nasdaq Listing Rule 5635(c)(4).

What are the details of the stock options granted by G1 Therapeutics on June 5, 2024?

G1 Therapeutics granted 4,650 stock options exercisable at $3.23 per share with a ten-year term, vesting over four years.

How many restricted stock units (RSUs) did G1 Therapeutics grant on June 5, 2024?

G1 Therapeutics granted 2,400 RSUs to a new employee, vesting over four years.

Why did G1 Therapeutics issue new stock options and RSUs on June 5, 2024?

The new stock options and RSUs were issued to induce a new employee's employment, in accordance with Nasdaq Listing Rule 5635(c)(4).

What is the vesting schedule for the RSUs granted by G1 Therapeutics on June 5, 2024?

The RSUs vest over four years, with 25% vesting after one year and the remainder vesting semi-annually over the next three years.

How does the Amended and Restated 2021 Plan affect G1 Therapeutics' new hires?

The Plan allows G1 Therapeutics to grant equity awards to new employees as an inducement for their employment.

What is the exercise price for G1 Therapeutics' new stock options issued on June 5, 2024?

The exercise price for the new stock options is $3.23 per share, based on the closing price on June 3, 2024.