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

Rhea-AI Summary

Karyopharm Therapeutics (Nasdaq: KPTI) announced the approval of stock options for 32,600 shares and 22,400 restricted stock units (RSUs) to 11 new employees, effective June 30, 2022. These grants serve as inducements for their employment, in compliance with Nasdaq Listing Rule 5635(c)(4). The stock options, priced at $4.51, will vest over four years, with 25% vesting after one year and the remainder monthly. RSUs will vest similarly over four years. Each award can be exercised fully if employment ends for 'good reason' or is terminated without 'cause' within the first year after a change in control.

Positive

• Inducement grants of stock options and RSUs may attract talent critical to growth.
• Stock options priced at $4.51, reflecting a reasonable entry point aligned with market conditions.
• The vesting schedule of four years supports long-term employee retention.

Negative

• Stock options may dilute current shareholders if exercised.
• No immediate financial metrics or performance indicators were provided to assess the impact of these grants.

NEWTON, Mass., July 1, 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 32,600 shares of Karyopharm's common stock and an aggregate of 22,400 restricted stock units (RSUs) to 11 newly-hired employees. These equity awards were granted as of June 30, 2022 (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).

Each of the stock options has an exercise price of $4.51 per share, the closing price of Karyopharm's common stock on June 30, 2022. 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 the 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 multiple myeloma, 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:https://www.prnewswire.com/news-releases/karyopharm-therapeutics-reports-inducement-grants-under-nasdaq-listing-rule-5635c4-301579349.html

SOURCE Karyopharm Therapeutics Inc.

FAQ

What is the significance of Karyopharm's stock option grant on July 1, 2022?

Karyopharm's stock option grant is significant as it aims to attract and retain talent, which is crucial for the company's growth.

How many stock options were granted by Karyopharm Therapeutics?

Karyopharm Therapeutics granted an aggregate of 32,600 stock options to new employees.

What is the exercise price of the stock options granted by Karyopharm?

The exercise price of the stock options is $4.51 per share, based on the closing price on June 30, 2022.

What is the vesting schedule for the stock options and RSUs at Karyopharm?

Both stock options and RSUs vest over four years, with 25% vesting on the first anniversary and the remainder vesting monthly thereafter.

What conditions allow for immediate exercise of the stock options?

The stock options can be exercised fully if the employee's employment is terminated for 'good reason' or without 'cause' within the first year following a change in control.