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

Rhea-AI Summary

Karyopharm Therapeutics Inc. (Nasdaq: KPTI) announced the grant of stock options for 124,500 shares to 15 newly-hired employees, effective January 31, 2022. The exercise price is set at $8.90 per share, reflecting the stock's closing price on the grant date. Options will vest over four years, with 25% vesting after one year and the remainder monthly. The options are also subject to immediate exercise if the employee's role is terminated without cause within a year following a 'change in control.' This move aligns with Nasdaq rules for inducements to new hires.

Positive

• Grant of stock options indicates company growth and new hiring, which may strengthen workforce.
• Stock options issued at market price ($8.90) align employee incentives with shareholder value.

Negative

• Dilution risk exists as new options granted could affect existing shareholders' equity.

NEWTON, Mass., Feb. 1, 2022 /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 124,500 shares of Karyopharm's common stock to 15 newly-hired employees, with a grant date of January 31, 2022. 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 $8.90 per share, the closing price of Karyopharm's common stock on January 31, 2022. 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. 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 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. Any other trademarks referred to in this release are the property of their respective owners.

 

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SOURCE Karyopharm Therapeutics Inc.

FAQ

What stock options were granted by Karyopharm Therapeutics on February 1, 2022?

Karyopharm Therapeutics granted stock options to purchase 124,500 shares to 15 new employees, with an exercise price of $8.90 per share.

How do the stock options for new hires at KPTI vest?

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

What is the significance of the stock options granted by KPTI?

The stock options are granted to incentivize new employees and align their interests with those of shareholders.

What are the potential risks associated with the stock options granted by Karyopharm?

The issuance of new stock options may lead to dilution of existing shareholders' stakes.