Iovance Biotherapeutics Reports Inducement Grants under NASDAQ Listing Rule 5635(c)(4)

Rhea-AI Summary

Iovance Biotherapeutics (NASDAQ: IOVA) announced on March 14, 2022, the approval of inducement stock options and restricted stock units covering 667,725 shares to nineteen new non-executive employees. These awards were granted under the 2021 Inducement Plan, which complies with Nasdaq Listing Rule 5635(c)(4). The options have an exercise price of $12.38, and vesting occurs over three years. This initiative aims to attract talent to enhance Iovance's development of T cell-based cancer therapies, particularly its lead candidate, lifileucel, for metastatic melanoma.

Positive

• Inducement of 667,725 shares aims to attract top talent, potentially strengthening development efforts.
• Awards granted under the 2021 Inducement Plan align with Nasdaq regulations.

Negative

• Dilution risk for existing shareholders due to the issuance of new stock options and units.
• Exercise price set at $12.38, which is significant for stock valuation.

SAN CARLOS, Calif., March 15, 2022 (GLOBE NEWSWIRE) -- Iovance Biotherapeutics, Inc. (NASDAQ: IOVA), a late-stage biotechnology company developing novel T cell-based cancer immunotherapies, today announced that on March 14, 2022 (the “Date of Grant”), the Company approved the grant of inducement stock options and restricted stock units covering an aggregate of 667,725 shares of Iovance’s common stock to nineteen new non-executive employees.

The awards were granted under Iovance’s 2021 Inducement Plan, which was adopted on September 22, 2021 and amended on January 12, 2022, and provides for the granting of equity awards to new employees of Iovance by the Company’s compensation committee in accordance with Nasdaq Listing Rule 5635(c)(4). Each of the stock options granted as referenced in this press release has an exercise price of $12.38, the closing price of Iovance’s common stock on the Date of Grant. Each stock option and certain restricted stock units vest over a three-year period, with one-third of the shares vesting on the first anniversary of the employee’s start date (referred to as the “First Vesting Date”), and the remaining shares vesting in eight quarterly installments over the next two years, commencing with the first quarter following the First Vesting Date, subject to continued employment with the Company through the applicable vesting dates. In addition, certain of these restricted stock awards may vest upon certain performance milestones rather than time-based vesting and may also provide for accelerated vesting upon certain specified events.

About Iovance Biotherapeutics, Inc.

Iovance Biotherapeutics aims to be the global leader in innovating, developing and delivering tumor infiltrating lymphocyte (TIL) therapies for patients with cancer. We are pioneering a transformational approach to cure cancer by harnessing the human immune system’s ability to recognize and destroy diverse cancer cells in each patient. Our lead late-stage TIL product candidate, lifileucel for metastatic melanoma, has the potential to become the first approved one-time cell therapy for a solid tumor cancer. The Iovance TIL platform has demonstrated promising clinical data across multiple solid tumors. We are committed to continuous innovation in cell therapy, including gene-edited cell therapy, that may extend and improve life for patients with cancer.

For more information, please visit www.iovance.com.

Forward-Looking Statements

Certain matters discussed in this press release are “forward-looking statements” of Iovance Biotherapeutics, Inc. (hereinafter referred to as the “Company,” “we,” “us,” or “our”) within the meaning of the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). All such written or oral statements made in this press release, other than statements of historical fact, are forward-looking statements and are intended to be covered by the safe harbor for forward-looking statements provided by the PSLRA. Without limiting the foregoing, we may, in some cases, use terms such as “predicts,” “believes,” “potential,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “forecast,” “guidance,” “outlook,” “may,” “could,” “might,” “will,” “should” or other words that convey uncertainty of future events or outcomes and are intended to identify forward-looking statements. Forward-looking statements are based on assumptions and assessments made in light of management’s experience and perception of historical trends, current conditions, expected future developments and other factors believed to be appropriate. Forward-looking statements in this press release are made as of the date of this press release, and we undertake no duty to update or revise any such statements, whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, many of which are outside of our control, that may cause actual results, levels of activity, performance, achievements and developments to be materially different from those expressed in or implied by these forward-looking statements. Important factors that could cause actual results, developments and business decisions to differ materially from forward-looking statements are described in the sections titled "Risk Factors" in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, and include, but are not limited to, the following substantial known and unknown risks and uncertainties inherent in our business: the effects of the COVID-19 pandemic; risks related to the timing of and our ability to successfully develop, submit, obtain and maintain U.S. Food and Drug Administration (“FDA”) or other regulatory authority approval of, or other action with respect to, our product candidates, and our ability to successfully commercialize any product candidates for which we obtain FDA approval; preliminary and interim clinical results, which may include efficacy and safety results, from ongoing clinical trials or cohorts may not be reflected in the final analyses of our ongoing clinical trials or subgroups within these trials or in other prior trials or cohorts; the risk that enrollment may need to be adjusted for our trials and cohorts within those trials based on FDA and other regulatory agency input; the changing landscape of care for cervical cancer patients may impact our clinical trials in this indication; the risk that we may be required to conduct additional clinical trials or modify ongoing or future clinical trials based on feedback from the FDA or other regulatory authorities; the risk that our interpretation of the results of our clinical trials or communications with the FDA may differ from the interpretation of such results or communications by the FDA; the acceptance by the market of our product candidates and their potential reimbursement by payors, if approved; our ability or inability to manufacture our therapies using third party manufacturers or our own facility may adversely affect our potential commercial launch; the results of clinical trials with collaborators using different manufacturing processes may not be reflected in our sponsored trials; the risk that unanticipated expenses may decrease our estimated cash balances and forecasts and increase our estimated capital requirements; and other factors, including general economic conditions and regulatory developments, not within our control.

CONTACTS

Iovance Biotherapeutics, Inc:
Sara Pellegrino, IRC
Vice President, Investor Relations & Public Relations
650-260-7120 ext. 264
Sara.Pellegrino@iovance.com

Jen Saunders
Director, Investor Relations & Public Relations
650-260-7120 ext. 264
Jen.Saunders@iovance.com

FAQ

What are the details of the stock options granted by Iovance Biotherapeutics on March 14, 2022?

On March 14, 2022, Iovance Biotherapeutics granted inducement stock options and restricted stock units covering 667,725 shares to nineteen new non-executive employees. The options have an exercise price of $12.38 and vest over three years.

How does the inducement plan affect Iovance Biotherapeutics' stock price?

The inducement plan could lead to potential dilution of existing shares, which might negatively impact Iovance Biotherapeutics' stock price.

What is the purpose of the stock option grants by Iovance Biotherapeutics?

The stock option grants are intended to attract and retain non-executive talent to support the company's growth in developing cancer immunotherapies.

What is the significance of the exercise price set at $12.38?

The exercise price of $12.38 reflects the closing price of Iovance's common stock on the date of grant, which is important for assessing the potential financial impact on the company.

How does the vesting schedule work for the options granted by Iovance?

The stock options and restricted stock units vest over three years, with one-third vesting on the first anniversary of the employee's start date and the remainder vesting in quarterly installments.