Jaguar Health Announces New Employee Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Jaguar Health, Inc. (NASDAQ:JAGX) announced on June 4, 2021, the grant of stock options and restricted stock units (RSUs) to a new employee as inducement awards. Effective May 27, 2021, the company granted nonstatutory stock options for 225,000 shares with an exercise price of $1.68 per share, vesting over three years. Additionally, 112,500 RSUs were granted, vesting similarly over three years. These grants were approved by the Compensation Committee and are contingent on the employee's continued service.

Positive

• New employee inducement awards may attract talent and enhance company performance.
• Stock options and RSUs align employee interests with shareholder goals.

Negative

• The high number of stock options granted may lead to potential shareholder dilution.

SAN FRANCISCO, CA / ACCESSWIRE / June 4, 2021 / Jaguar Health, Inc. (NASDAQ:JAGX) ("Jaguar" or the "Company") announced today that effective May 27, 2021, the Company granted nonstatutory stock options for the purchase of up to 225,000 shares of the Company's common stock to a new employee, as an inducement award under the Company's 2020 Inducement Plan. These nonstatutory stock options have an exercise price of $1.68 per share, representing the closing price of Jaguar's common stock as reported by Nasdaq on the grant date. These nonstatutory stock options have a ten-year term and vest over three years, with 25% of the shares vesting nine months from the last day of the month of the employee's date of hire and, thereafter, 2.78% vesting monthly for the remaining twenty-seven months.

Effective May 27, 2021, the Company also granted 112,500 restricted stock units (RSUs) to the same new employee under the Company's 2014 Stock Incentive Plan. These RSUs vest over three years, with one-third of the shares vesting each year on the anniversary of the employee's date of hire.

All RSUs and nonstatutory stock options described above were granted as an inducement material to the new employee's acceptance of employment with the Company and were approved by the Compensation Committee of the Board. Vesting of the RSUs and nonstatutory stock options is subject to the employee's continued service with Jaguar through the applicable vesting dates.

About Jaguar Health, Inc., Napo Pharmaceuticals, Inc. & Napo EU S.p.A.

Jaguar Health, Inc. is a commercial stage pharmaceuticals company focused on developing novel, plant-based, non-opioid, and sustainably derived prescription medicines for people and animals with GI distress, specifically chronic, debilitating diarrhea. Our wholly owned subsidiary, Napo Pharmaceuticals, Inc., focuses on developing and commercializing proprietary plant-based human gastrointestinal pharmaceuticals from plants harvested responsibly from rainforest areas. Our Mytesi^® (crofelemer) product is approved by the U.S. FDA for the symptomatic relief of noninfectious diarrhea in adults with HIV/AIDS on antiretroviral therapy and the only oral plant-based prescription medicine approved under FDA Botanical Guidance. Napo Pharmaceuticals' wholly owned Italian subsidiary, Napo EU S.p.A., focuses on expanding crofelemer access in Europe.

For more information about Jaguar, please visit https://jaguar.health. For more information about Napo Pharmaceuticals, visit www.napopharma.com. For more information about Napo EU, visit www.napoeu.com.

About Mytesi^®

Mytesi^® (crofelemer) is an antidiarrheal indicated for the symptomatic relief of noninfectious diarrhea in adult patients with HIV/AIDS on antiretroviral therapy (ART). Mytesi^® is not indicated for the treatment of infectious diarrhea. Rule out infectious etiologies of diarrhea before starting Mytesi^®. If infectious etiologies are not considered, there is a risk that patients with infectious etiologies will not receive the appropriate therapy and their disease may worsen. In clinical studies, the most common adverse reactions occurring at a rate greater than placebo were upper respiratory tract infection (5.7%), bronchitis (3.9%), cough (3.5%), flatulence (3.1%), and increased bilirubin (3.1%).

More information and complete Prescribing Information are available at Mytesi.com. Crofelemer, the active ingredient in Mytesi^®, is a botanical (plant-based) drug extracted and purified from the red bark sap of the medicinal Croton lechleri tree in the Amazon Rainforest. Napo has established a sustainable harvesting program for crofelemer to ensure a high degree of quality and ecological integrity.

Forward-Looking Statements

Certain statements in this press release constitute "forward-looking statements." In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expect," "plan," "aim," "anticipate," "could," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential" or "continue" or the negative of these terms or other similar expressions. The forward-looking statements in this release are only predictions. Jaguar has based these forward-looking statements largely on its current expectations and projections about future events. These forward-looking statements speak only as of the date of this release and are subject to a number of risks, uncertainties and assumptions, some of which cannot be predicted or quantified and some of which are beyond Jaguar's control. Except as required by applicable law, Jaguar does not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.

CONTACT:
Peter Hodge
Jaguar Health, Inc.
phodge@jaguar.health

Jaguar-JAGX

SOURCE: Jaguar Health, Inc.

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FAQ

What stock options were granted by Jaguar (JAGX) in June 2021?

Jaguar granted nonstatutory stock options for the purchase of 225,000 shares at an exercise price of $1.68 per share on May 27, 2021.

What are the vesting terms for the stock options granted to the new employee at Jaguar (JAGX)?

The stock options vest over three years with 25% vesting nine months after the hire date and the remainder vesting monthly.

How many restricted stock units (RSUs) were granted by Jaguar (JAGX)?

Jaguar granted 112,500 RSUs to the new employee, which vest over three years with one-third vesting each year.

What impact do employee inducement grants have on Jaguar Health (JAGX)?

The grants may enhance employee retention and align their interests with shareholders, but they could also result in dilution for existing shareholders.