Karyopharm Therapeutics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Karyopharm Therapeutics (Nasdaq: KPTI) announced that the Compensation Committee granted stock options to purchase 86,900 shares to 13 new employees on October 30, 2020. The options have an exercise price of $14.82 per share, equivalent to Karyopharm's closing stock price on that date. The options vest over four years, with 25% vesting after one year and the remainder vesting monthly. Immediate full exercise is possible if employment is terminated for 'good reason' or without 'cause' within a year of a change in control event.

Positive

• Inducement grants may attract skilled talent, enhancing company capabilities.
• Stock options align employee interests with shareholder value.

Negative

• None.

NEWTON, Mass., Nov. 3, 2020 /PRNewswire/ -- Karyopharm Therapeutics Inc. (Nasdaq: KPTI), commercial-stage pharmaceutical company pioneering novel cancer therapies, today announced that the Compensation Committee of Karyopharm's Board of Directors granted stock options to purchase an aggregate of 86,900 shares of Karyopharm's common stock to 13 newly-hired employees, with a grant date of October 30, 2020.  The stock options were granted as inducements material to the new employees entering into employment with Karyopharm in accordance with Nasdaq Listing Rule 5635(c)(4).

Each of the stock options has an exercise price of $14.82 per share, the closing price of Karyopharm's common stock on October 30, 2020. Each stock option vests over four years, with 25% of the total number of shares underlying the stock option vesting on the one-year anniversary of the applicable employee's employment commencement date and 1/48th of the total number of shares vesting monthly thereafter, subject to the employee's continued service as an employee of, or other service provider to, Karyopharm through the applicable vesting dates. In addition, each stock option will be immediately exercisable in full if, on or prior to the first anniversary of the consummation of a "change in control event," the employee's employment is terminated for "good reason" by the employee or terminated without "cause" by Karyopharm (as such terms are defined in the applicable stock option agreement).

About Karyopharm Therapeutics
Karyopharm Therapeutics Inc. (Nasdaq: KPTI) is a commercial-stage pharmaceutical company pioneering novel cancer therapies and dedicated to the discovery, development, and commercialization of novel first-in-class drugs directed against nuclear export and related targets for the treatment of cancer and other major diseases. Karyopharm's Selective Inhibitor of Nuclear Export (SINE) compounds function by binding with and inhibiting the nuclear export protein XPO1 (or CRM1). Karyopharm's lead compound, XPOVIO® (selinexor), received accelerated approval from the U.S. Food and Drug Administration (FDA) in July 2019 in combination with dexamethasone as a treatment for patients with heavily pretreated multiple myeloma. In June 2020, XPOVIO was approved by the FDA as a treatment for patients with relapsed or refractory diffuse large B-cell lymphoma. A Marketing Authorization Application for selinexor for patients with heavily pretreated multiple myeloma is also currently under review by the European Medicines Agency. In addition to single-agent and combination activity against a variety of human cancers, SINE compounds have also shown biological activity in models of neurodegeneration, inflammation, autoimmune disease, certain viruses and wound-healing. Karyopharm has several investigational programs in clinical or preclinical development. For more information, please visit www.karyopharm.com.

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SOURCE Karyopharm Therapeutics Inc.

FAQ

What recent stock option grants did Karyopharm Therapeutics announce?

Karyopharm granted options to purchase 86,900 shares to 13 new employees on October 30, 2020.

What is the exercise price for Karyopharm's stock options?

The exercise price for the stock options is $14.82 per share.

How do the stock options at Karyopharm vest?

The options vest over four years, with 25% vesting after one year and the rest vesting monthly.

What conditions allow immediate exercise of stock options at Karyopharm?

Immediate full exercise is allowed if employment is terminated for 'good reason' or without 'cause' within a year of a change in control event.