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

Rhea-AI Summary

Karyopharm Therapeutics (Nasdaq: KPTI) announced stock options granted to 12 new employees, totaling 50,500 shares. The options, with an exercise price of $15.48 per share, were issued as inducements for joining the company, in line with Nasdaq Listing Rule 5635(c)(4). Each option vests over four years, with 25% vesting after the first year. Additionally, options will be fully exercisable if employment is terminated under specific conditions within a year of a 'change in control.' This move supports Karyopharm's growth in developing innovative cancer therapies.

Positive

• Granting stock options to attract talent supports Karyopharm's expansion.
• Exercise price of $15.48 aligns with market valuation as of December 31, 2020.

Negative

• None.

NEWTON, Mass., Jan. 4, 2021 /PRNewswire/ -- Karyopharm Therapeutics Inc. (Nasdaq: KPTI), a 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 50,500 shares of Karyopharm's common stock to 12 newly-hired employees, with a grant date of December 31, 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 $15.48 per share, the closing price of Karyopharm's common stock on December 31, 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 and in December 2020 in combination with Velcade® (bortezomib) and dexamethasone as a treatment for patients with multiple myeloma after at least one prior therapy. 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 stock options were granted by Karyopharm Therapeutics on January 4, 2021?

Karyopharm granted stock options for 50,500 shares to 12 new employees, with an exercise price of $15.48 each.

What is the vesting schedule for the stock options granted to Karyopharm's new employees?

The stock options vest over four years: 25% after the first year and 1/48th monthly thereafter.

What is the significance of the stock options granted by Karyopharm under Nasdaq Listing Rule 5635(c)(4)?

The options were granted as inducements to encourage new hires, ensuring compliance with Nasdaq regulations.

What happens if a Karyopharm employee's employment is terminated after a change in control?

If terminated for 'good reason' or without 'cause' within a year of a change in control, the employee's stock options become fully exercisable.