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

Rhea-AI Summary

ImmunoGen Inc. (Nasdaq: IMGN) announced on April 30, 2021, that its Board of Directors granted non-qualified stock option awards for 121,900 shares to four new employees under the Inducement Equity Incentive Plan. This plan facilitates equity awards for individuals not previously employed by the company. The options have an exercise price of $8.06 per share, equal to the stock's closing price on that date. The options will vest over four years, starting with 25% after one year and 6.25% quarterly thereafter, contingent on continued employment.

Positive

• Granting stock options can enhance employee retention and attract talent.
• The exercise price aligns with the current market value, indicating no immediate dilution.
• The structure of the vesting schedule may motivate long-term commitment from employees.

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 April 30, 2021 the compensation committee of the Company’s Board of Directors granted non-qualified stock option awards to purchase an aggregate of 121,900 shares of its common stock to four 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 $8.06 per share, which is equal to the closing price of ImmunoGen’s common stock on the Nasdaq Global Select Market on April 30, 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.

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FAQ

What was the recent stock option grant by ImmunoGen on April 30, 2021?

ImmunoGen granted non-qualified stock option awards for 121,900 shares to four new employees under the Inducement Equity Incentive Plan.

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

The exercise price for the stock options is $8.06 per share, equal to the closing price on the grant date.

How does the vesting schedule for ImmunoGen's stock options work?

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

What is the purpose of the Inducement Equity Incentive Plan?

The Inducement Plan grants equity awards to individuals who were not previously employees, serving as an inducement for joining ImmunoGen.