Chinook Therapeutics Announces New Employment Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Chinook Therapeutics (Nasdaq: KDNY) announced the approval of employment inducement grants involving stock options for two new employees, totaling 83,599 shares. These options have an exercise price of $15.54, aligned with the closing stock price on March 31, 2021. The options vest over four years, with an initial 25% vesting upon starting and subsequent monthly vesting. This decision aligns with Nasdaq listing Rule 5635(c)(4). Chinook focuses on precision medicines for kidney diseases, currently developing treatments for conditions like IgA nephropathy.

Positive

• Inducement grants signify growth and new talent acquisition.
• Stock options issued at current market price may boost employee motivation.

Negative

• None.

VANCOUVER, British Columbia and SEATTLE, April 01, 2021 (GLOBE NEWSWIRE) -- Chinook Therapeutics, Inc. (Nasdaq: KDNY), a biopharmaceutical company focused on the discovery, development and commercialization of precision medicines for kidney diseases, today announced that the Compensation Committee of the Company’s Board of Directors approved new employment inducement grants of stock options to purchase a total of 83,599 shares of common stock with a grant date of March 31, 2021 (the “Inducement Grants”) for two new employees.

The stock options approved under the Inducement Grants were issued on terms substantially similar to Chinook’s 2015 Equity Incentive Plan and have an exercise price per share equal to $15.54, the closing price per share of Chinook’s common stock on the grant date. The stock options vest over four years, with 25% vesting on each employee’s start date and 1/36^th of the shares vesting monthly thereafter, subject to each employee’s continued employment on each such date. The stock options have a 10-year term and are subject to the terms and conditions of the stock option agreement.

The Company granted the stock options as a material inducement to these employees for entering into employment with Chinook Therapeutics, Inc. in accordance with Nasdaq listing Rule 5635(c)(4).

About Chinook Therapeutics, Inc.
Chinook Therapeutics, Inc. is a clinical-stage biotechnology company developing precision medicines for kidney diseases. Chinook’s product candidates are being investigated in rare, severe chronic kidney disorders with opportunities for well-defined clinical pathways. Chinook’s lead program is atrasentan, a phase 3 endothelin receptor antagonist for the treatment of IgA nephropathy and other proteinuric glomerular diseases. BION-1301, an anti-APRIL monoclonal antibody is being evaluated in a phase 1b trial for IgA nephropathy. In addition, Chinook is advancing CHK-336, an oral small molecule LDHA inhibitor for the treatment of primary hyperoxaluria, as well as research programs for other rare, severe chronic kidney diseases. Chinook is building its pipeline by leveraging insights in kidney single cell RNA sequencing, human-derived organoids and new translational models, to discover and develop therapeutics with differentiating mechanisms of action against key kidney disease pathways. To learn more, visit www.chinooktx.com.

Contact:
Noopur Liffick
Vice President, Investor Relations & Corporate Communications
investors@chinooktx.com
media@chinooktx.com

 

FAQ

What is the significance of Chinook Therapeutics' employment inducement grants?

The grants reflect Chinook's commitment to attracting talent, aligning with growth strategies.

What are the terms of the stock options granted by Chinook Therapeutics?

The options total 83,599 shares with an exercise price of $15.54, vesting over four years.

How does the grant of stock options impact Chinook Therapeutics' stock?

It may enhance employee motivation, potentially benefiting overall company performance.

What are Chinook Therapeutics' main focus areas?

Chinook specializes in developing precision medicines for kidney diseases, including IgA nephropathy.

When were the employment inducement grants approved?

They were approved on April 1, 2021, with a grant date of March 31, 2021.