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

Rhea-AI Summary

ImmunoGen Inc. announced on February 26, 2021, that its Board of Directors granted non-qualified stock options to purchase 66,500 shares of common stock to two new employees as an inducement under the Inducement Equity Incentive Plan. The options have an exercise price of $8.75 per share, aligning with the closing stock price on the grant date. The options will vest over four years, with 25% vesting on the one-year anniversary and 6.25% vesting quarterly thereafter, contingent on continued employment. This initiative aims to enhance recruitment of essential talent within the growing field of antibody-drug conjugates.

Positive

• Attracts talent with stock options, supporting growth in the ADC sector.
• Stock options priced at $8.75, equal to market price, promoting fair employee incentives.
• Options vesting over four years aligns employee interests with long-term company performance.

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 February 26, 2021 the compensation committee of the Company’s Board of Directors granted non-qualified stock option awards to purchase an aggregate of 66,500 shares of its common stock to two 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 $8.75 per share, which is equal to the closing price of ImmunoGen’s common stock on the Nasdaq Global Select Market on February 26, 2021. 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/20210301005152/en/

FAQ

What is the significance of the stock option grants by ImmunoGen on February 26, 2021?

The stock option grants aim to attract new employees by providing stock options as part of their compensation package under the Inducement Equity Incentive Plan.

How many shares were granted as stock options by ImmunoGen?

ImmunoGen granted stock options to purchase an aggregate of 66,500 shares of its common stock.

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

The exercise price for the stock options is $8.75 per share, matching the closing stock price on the grant date.

How do the stock options vest for ImmunoGen employees?

The options vest over four years, with 25% vesting on the one-year anniversary of the grant date, followed by quarterly vesting of 6.25%.