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

Rhea-AI Summary

Karyopharm Therapeutics (Nasdaq: KPTI) announced the granting of stock options to 11 new employees. An aggregate of 93,600 shares is available for purchase at an exercise price of $13.82 per share, corresponding to the closing price on February 26, 2021. These options vest over four years, with 25% vesting after one year and subsequent monthly vesting. The options will fully vest upon certain termination scenarios within a year of a 'change in control event.'

Positive

• Grant of stock options may enhance employee retention and incentivize performance.
• The stock options align employee interests with shareholder value.

Negative

• None.

NEWTON, Mass., March 1, 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 93,600 shares of Karyopharm's common stock to 11 newly-hired employees, with a grant date of February 26, 2021.  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 $13.82 per share, the closing price of Karyopharm's common stock on February 26, 2021. 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), is approved in the U.S. in multiple hematologic malignancy indications, including in combination with Velcade® (bortezomib) and dexamethasone for the treatment of patients with multiple myeloma after at least one prior therapy, in combination with dexamethasone for the treatment of patients with heavily pretreated multiple myeloma and as a monotherapy for the treatment of patients with relapsed or refractory diffuse large B-cell lymphoma. A Marketing Authorization Application for NEXPOVIO® (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 is the significance of the stock options granted by KPTI on March 1, 2021?

The stock options are intended to attract and retain talent by incentivizing new employees to contribute to Karyopharm's success.

How many shares were granted in stock options by Karyopharm Therapeutics?

Karyopharm granted stock options for an aggregate of 93,600 shares.

What is the exercise price for the stock options granted by KPTI?

The exercise price for the stock options is $13.82 per share.

What are the vesting terms for the stock options granted by Karyopharm?

The stock options vest over four years, with 25% vesting on the one-year anniversary and the remainder vesting monthly.

What does 'change in control event' mean regarding KPTI's stock options?

'Change in control event' refers to specific conditions under which the stock options would fully vest if employment is terminated.