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

Rhea-AI Summary

Chinook Therapeutics (Nasdaq: KDNY) has announced the approval of a new employment inducement grant of stock options for a new employee, totaling 25,733 shares. The options have an exercise price of $14.12, equal to the closing price on June 30, 2021, and vest over four years. This grant follows Nasdaq Rule 5635(c)(4) and aims to attract talent to the company, which focuses on precision medicines for kidney diseases. Chinook is advancing its clinical programs, including atrasentan and BION-1301, targeting rare kidney disorders.

Positive

• The new employment inducement grant of stock options aims to attract talent, potentially enhancing company capabilities.
• Chinook is advancing multiple promising clinical programs for kidney diseases, showing commitment to innovative therapies.

Negative

• None.

SEATTLE, July 07, 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 a new employment inducement grant of stock options to purchase 25,733 shares of common stock with a grant date of June 30, 2021 (the “Inducement Grants”) for a new employee.

The stock options approved under the Inducement Grant were issued on terms substantially similar to Chinook’s 2015 Equity Incentive Plan and have an exercise price per share equal to $14.12, 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 the employee’s start date and 1/36^th of the remaining shares vesting monthly thereafter, subject to the 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 this employee 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 biopharmaceutical 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 did Chinook Therapeutics announce on July 7, 2021?

Chinook announced the approval of an employment inducement grant for stock options totaling 25,733 shares.

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

The exercise price for the stock options is $14.12, the closing price on the grant date of June 30, 2021.

How long is the vesting period for the stock options granted by Chinook?

The stock options vest over four years, with 25% vesting on the employee's start date.

What is the relevance of Nasdaq Rule 5635(c)(4) in this announcement?

The grant was issued as a material inducement for the employee's employment, in compliance with Nasdaq listing rules.