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

Rhea-AI Summary

Karyopharm Therapeutics (Nasdaq: KPTI) announced on February 28, 2022, the approval of stock options for 168,500 shares and 112,200 restricted stock units (RSUs) to nine new employees. These awards are part of the 2022 Inducement Stock Incentive Plan and serve as an employment inducement per Nasdaq Listing Rule 5635(c)(4). Each option has an exercise price of $10.33, vesting over four years, with specific conditions for immediate exercise upon a change in control or termination for good reason.

Positive

• Grant of stock options may enhance employee motivation and retention.
• Equity awards align employee interests with shareholder value.

Negative

• Potential dilution of shares due to stock options and RSUs.

NEWTON, Mass., Feb. 28, 2022 /PRNewswire/ -- Karyopharm Therapeutics Inc. (Nasdaq: KPTI), a commercial-stage pharmaceutical company pioneering novel cancer therapies, today announced that the Company approved the grant of stock options to purchase an aggregate of 168,500 shares of Karyopharm's common stock and an aggregate of 112,200 restricted stock units (RSUs) to nine newly-hired employees. These equity awards were granted as of February 28, 2022 (the Grant Date) pursuant to the Company's 2022 Inducement Stock Incentive Plan, 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 $10.33 per share, the closing price of Karyopharm's common stock on the Grant Date. Each stock option will vest 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. Each RSU award will vest over four years, with 25% percent of the shares underlying the RSU award vesting on each of the four consecutive anniversaries of the applicable employee's employment commencement date. The vesting of each inducement award is 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 and RSU award 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 or RSU agreement).

About Karyopharm Therapeutics

Karyopharm Therapeutics Inc. (Nasdaq: KPTI) is a commercial-stage pharmaceutical company pioneering novel cancer therapies. Since its founding, Karyopharm has been an industry leader in oral Selective Inhibitor of Nuclear Export (SINE) compound technology, which was developed to address a fundamental mechanism of oncogenesis: nuclear export dysregulation. Karyopharm's lead SINE compound and first-in-class, oral exportin 1 (XPO1) inhibitor, XPOVIO^® (selinexor), is approved in the U.S. and marketed by the Company in three oncology indications and has received regulatory approvals in various indications in a growing number of ex-U.S. territories and countries, including Europe and the United Kingdom (as NEXPOVIO^®) and China. Karyopharm has a focused pipeline targeting multiple high unmet need cancer indications, including in endometrial cancer, myelodysplastic syndromes and myelofibrosis. For more information about our people, science and pipeline, please visit www.karyopharm.com, and follow us on Twitter at @Karyopharm and LinkedIn.

XPOVIO^® and NEXPOVIO^® are registered trademarks of Karyopharm Therapeutics Inc.

View original content to download multimedia:https://www.prnewswire.com/news-releases/karyopharm-therapeutics-reports-inducement-grants-under-nasdaq-listing-rule-5635c4-301492068.html

SOURCE Karyopharm Therapeutics Inc.

FAQ

What is the significance of KPTI's stock option grant on February 28, 2022?

KPTI granted stock options and RSUs to new employees under its 2022 Inducement Stock Incentive Plan, potentially boosting employee retention.

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

The exercise price for the stock options is $10.33 per share.

How are KPTI's stock options structured?

The stock options vest over four years, with 25% vesting on the first anniversary of employment.

What happens to stock options if there is a change in control at Karyopharm?

Stock options will be immediately exercisable if employment is terminated for good reason or without cause within a year of a change in control.

Who received the stock options and RSUs at KPTI?

Nine newly-hired employees received stock options and RSUs.