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

Rhea-AI Summary

Karyopharm Therapeutics, a commercial-stage pharmaceutical company, announced the grant of 9,500 restricted stock units (RSUs) to three newly-hired employees and 200,000 RSUs to Dr. Michael Method, Senior VP of Clinical Development. These grants, effective May 31, 2024, were made under the 2022 Inducement Stock Incentive Plan and follow Nasdaq Listing Rule 5635(c)(4). The RSUs will vest over three years, contingent on continued employment. Immediate full vesting occurs if employment is terminated for 'good reason' or without 'cause' within one year of a 'change in control event.' Keywords: KPTI, Karyopharm, RSUs, Nasdaq, restricted stock units.

Positive

• Granted 9,500 RSUs to three new employees and 200,000 RSUs to Senior VP Michael Method.
• Grants made under the 2022 Inducement Stock Incentive Plan, showcasing commitment to attracting top talent.
• RSUs vest over three years, encouraging long-term employment and service.

Negative

• Vesting of RSUs is contingent on continuous employment, posing a risk if employees leave early.
• Immediate full vesting if employment is terminated for 'good reason' or without 'cause' within a year of a 'change in control event' could lead to significant share dilution.

NEWTON, Mass., June 3, 2024 /PRNewswire/ -- Karyopharm Therapeutics Inc. (Nasdaq: KPTI), a commercial-stage pharmaceutical company pioneering novel cancer therapies, today announced that the Company granted an aggregate of 9,500 restricted stock units (RSUs) to three newly-hired employees. These RSU awards were granted as of May 31, 2024 (the "Grant Date") pursuant to the Company's 2022 Inducement Stock Incentive Plan, as amended, as inducements material to the new employees entering into employment with Karyopharm in accordance with Nasdaq Listing Rule 5635(c)(4).

In addition, the Company granted an award of 200,000 RSUs to Michael Method, MD, MPH, MBA, the Company's Senior Vice President, Clinical Development, with a grant date of May 31, 2024. 

Each RSU award will vest over three years, with 33 1/3% of the shares underlying the RSU award vesting on each of the three consecutive anniversaries of the Grant Date. The vesting of each RSU 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 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 RSU agreement).

About Karyopharm Therapeutics

Karyopharm Therapeutics Inc. (Nasdaq: KPTI) is a commercial-stage pharmaceutical company whose dedication to pioneering novel cancer therapies is fueled by a belief in the extraordinary strength and courage of patients with cancer. Since its founding, Karyopharm has been an industry leader in oral compounds that address nuclear export dysregulation, a fundamental mechanism of oncogenesis. Karyopharm's lead compound and first­in­class, oral exportin 1 (XPO1) inhibitor, XPOVIO® (selinexor), is approved in the U.S. and marketed by the Company in three oncology indications. It has also received regulatory approvals in various indications in a growing number of ex­U.S. territories and countries, including Europe and the United Kingdom (as NEXPOVIO®) and China. Karyopharm has a focused pipeline targeting indications in multiple high unmet need cancers, including in multiple myeloma, endometrial cancer, myelofibrosis, and diffuse large B-cell lymphoma (DLBCL). For more information about our people, science and pipeline, please visit www.karyopharm.com, and follow us on LinkedIn and on X at @Karyopharm.

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

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SOURCE Karyopharm Therapeutics Inc.

FAQ

What are the terms of the RSU grants announced by Karyopharm on June 3, 2024?

Karyopharm granted 9,500 RSUs to three new employees and 200,000 RSUs to Dr. Michael Method. These RSUs vest over three years, subject to continued employment.

How many RSUs were granted to Dr. Michael Method by Karyopharm?

Dr. Michael Method was granted 200,000 RSUs.

When was the grant date for the RSUs announced by Karyopharm?

The grant date for the RSUs was May 31, 2024.

What conditions apply to the vesting of the RSUs granted by Karyopharm?

RSUs vest over three years with 33 1/3% vesting each year, subject to continued employment. Immediate full vesting occurs if terminated for 'good reason' or without 'cause' within a year of a 'change in control event.'

Under which plan were the RSUs granted by Karyopharm awarded?

The RSUs were granted under Karyopharm's 2022 Inducement Stock Incentive Plan.