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 for 150,600 shares to 15 new employees, effective March 31, 2021. The options have an exercise price of $10.52, aligning with the closing price on the grant date. These options will vest over four years, with an initial 25% vesting after one year, followed by monthly vesting. Additionally, the options may become fully exercisable upon termination for 'good reason' or without 'cause' after a 'change in control' event. This move is expected to attract talent as the company advances its cancer therapies.

Positive

• Granting stock options can attract and retain key talent for Karyopharm.
• Stock options are aligned with market price, potentially engaging employees in company performance.

Negative

• None.

NEWTON, Mass., April 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 150,600 shares of Karyopharm's common stock to 15 newly-hired employees, with a grant date of March 31, 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 $10.52 per share, the closing price of Karyopharm's common stock on March 31, 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 first-in-class drugs directed against nuclear export for the treatment of cancer and other 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 adult patients with multiple myeloma after at least one prior therapy, in combination with dexamethasone for the treatment of adult patients with heavily pretreated multiple myeloma and as a monotherapy for the treatment of patients with relapsed or refractory diffuse large B-cell lymphoma. NEXPOVIO® (selinexor) has also been granted conditional marketing authorization for adult patients with heavily pretreated multiple myeloma by the European Commission. 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 recent stock option grant by Karyopharm Therapeutics?

Karyopharm granted stock options to purchase 150,600 shares to 15 new employees at an exercise price of $10.52.

When were the stock options granted by Karyopharm?

The stock options were granted on March 31, 2021.

Under what rule were the stock options granted by Karyopharm?

The stock options were granted in accordance with Nasdaq Listing Rule 5635(c)(4).

How do Karyopharm's stock options vest?

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

What is the significance of the exercise price for Karyopharm's stock options?

The exercise price of $10.52 reflects the closing price of Karyopharm's stock on the grant date, aligning employee interests with shareholder value.