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

Rhea-AI Summary

Chinook Therapeutics, Inc. (Nasdaq: KDNY) announced an employment inducement grant of stock options for 45,000 shares, effective May 6, 2022. The options have an exercise price of $13.64, aligning with the closing stock price on the grant date. Vested over four years, 25% will vest upon the employee's start date, with the remainder vesting monthly. This grant complies with Nasdaq listing Rule 5635(c)(4) and aims to attract talent for the company's precision medicine development focused on kidney diseases.

Positive

• New employment inducement grant of stock options enhances talent acquisition.
• Stock options set at $13.64, aligning with market price, ensuring competitive compensation.

Negative

• None.

SEATTLE, May 12, 2022 (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 45,000 shares of common stock with a grant date of May 6, 2022 (the “Inducement Grant”) to one 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 $13.64, 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 1/2 trial for IgA nephropathy. CHK-336, an oral small molecule LDHA inhibitor for the treatment of hyperoxalurias, is being evaluated in a phase 1 healthy volunteer trial. In addition, Chinook is advancing 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.

FAQ

What is the stock options grant by Chinook Therapeutics, Inc. (KDNY)?

Chinook Therapeutics announced a grant of stock options to purchase 45,000 shares at an exercise price of $13.64, effective May 6, 2022.

What is the vesting schedule for the stock options granted to KDNY's new employee?

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

Why did Chinook Therapeutics grant stock options to the new employee?

The stock options were granted as a material inducement for the employee to join Chinook, in accordance with Nasdaq rules.

What is the significance of the stock options grant to KDNY?

The grant aims to attract and retain talent crucial for Chinook's focus on developing treatments for kidney diseases.