ImmunoGen Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

ImmunoGen announced the granting of non-qualified stock option awards for 91,800 shares to two new employees on December 31, 2020, under the Inducement Equity Incentive Plan. The stock options, exercisable at $6.45, equal the closing stock price on the grant date. These options will vest over four years, starting with 25% on the first anniversary. The Inducement Plan is designed for new hires as an incentive for joining the company.

Positive

• Granting stock options can enhance employee retention and attract talent.
• Stock options priced at $6.45 reflect a strategic move in alignment with market values.

Negative

• None.

ImmunoGen Inc. (Nasdaq: IMGN), a leader in the expanding field of antibody-drug conjugates (ADCs) for the treatment of cancer, today announced that on December 31, 2020 the compensation committee of the Company’s Board of Directors granted non-qualified stock option awards to purchase an aggregate of 91,800 shares of its common stock to two new employees under the ImmunoGen, Inc. Inducement Equity Incentive Plan (the “Inducement Plan”). The stock options were granted as an inducement material to the new employee’s becoming an employee of ImmunoGen in accordance with Nasdaq Listing Rule 5635(c)(4).

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

The options have an exercise price of $6.45 per share, which is equal to the closing price of ImmunoGen’s common stock on the Nasdaq Global Select Market on December 31, 2020. Each option will vest over a four-year period, with 25% of the shares vesting on the one year anniversary of the date of grant, and thereafter an additional 6.25% of the shares vesting on each succeeding quarterly anniversary of the date of grant, subject to such employee’s continued employment with ImmunoGen on such vesting dates. Each option is subject to the terms and conditions of the Inducement Plan and the terms and conditions of a stock option agreement covering the grant.

ABOUT IMMUNOGEN

ImmunoGen is developing the next generation of antibody-drug conjugates to improve outcomes for cancer patients. By generating targeted therapies with enhanced anti-tumor activity and favorable tolerability profiles, we aim to disrupt the progression of cancer and offer our patients more good days. We call this our commitment to “target a better now.”

Learn more about who we are, what we do, and how we do it at www.immunogen.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210104005567/en/

FAQ

What is the significance of the stock options granted by ImmunoGen on December 31, 2020?

The stock options incentivize new employees and align their interests with shareholders, potentially improving company performance.

What is the exercise price of the stock options granted by ImmunoGen?

The exercise price of the stock options is set at $6.45 per share.

How will the stock options vest for the new employees at ImmunoGen?

The stock options will vest over four years, with 25% vesting on the first anniversary and 6.25% vesting quarterly thereafter.

What is the purpose of ImmunoGen's Inducement Equity Incentive Plan?

The plan aims to provide stock options to new employees as a material inducement for joining the company.

How many shares were granted as stock options by ImmunoGen?

ImmunoGen granted an aggregate of 91,800 stock options to two new employees.