Longboard Pharmaceuticals Announces Inducement Grants Under Nasdaq Listing Rule 5635(C)(4)

Rhea-AI Summary

Longboard Pharmaceuticals, a clinical-stage biopharmaceutical company focusing on neurological diseases, has announced inducement grants for three new employees. The Compensation Committee approved non-qualified stock options to purchase 56,000 shares of common stock and 35,000 restricted stock units (RSUs) on September 30, 2024.

The stock options have an exercise price of $33.33 per share, equal to the closing price on the grant date. They will vest 25% after one year, with the remaining 75% vesting monthly over 36 months. The RSUs will vest 25% annually over four years. Both grants are subject to continued employment and were made in accordance with Nasdaq Listing Rule 5635(c)(4).

Positive

• Attracting new talent with stock options and RSUs
• Stock options granted at current market price, aligning with shareholder interests

Negative

• Potential dilution of existing shareholders due to new stock options and RSUs

LA JOLLA, Calif.--(BUSINESS WIRE)-- Longboard Pharmaceuticals, Inc. (Nasdaq: LBPH), a clinical-stage biopharmaceutical company focused on developing novel, transformative medicines for neurological diseases, today announced the grant of inducement awards to three new employees. The Compensation Committee of the Board of Directors of Longboard approved the grants of non-qualified stock options to purchase an aggregate of 56,000 shares of its common stock (the “Common Stock”) and 35,000 restricted stock units (“RSUs”) as inducements material to the employees entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).

The stock options and RSUs were granted on September 30, 2024 (the “Grant Date”). The stock options have an exercise price of $33.33 per share, which is equal to the closing price of the Common Stock on the Grant Date. The stock options will vest and become exercisable as to 25% of the underlying shares of Common Stock on the one-year anniversary of the applicable employee’s start date of employment and will vest and become exercisable as to the remaining 75% of the underlying shares of Common Stock in 36 equal monthly installments thereafter on each monthly anniversary, subject to the applicable employee’s continued employment with Longboard on each such vesting date. The RSUs will vest over four years, with 25% vesting on each of the first four anniversaries of the applicable employee’s start date of employment, subject to continued employment on each such vesting date. The stock options and RSUs were granted as an inducement material to the employees entering into employment in accordance with Nasdaq Listing Rule 5635(c)(4) and are subject to the terms and conditions of the applicable award agreements covering such grants.

ABOUT LONGBOARD PHARMACEUTICALS

Longboard Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company focused on developing novel, transformative medicines for neurological diseases. Longboard is working to advance a portfolio of centrally acting product candidates designed to be highly selective for specific G protein-coupled receptors (GPCRs). Longboard’s small molecule product candidates are based on more than 20 years of GPCR research. Bexicaserin (LP352), an oral, centrally acting 5-hydroxytryptamine 2C (5-HT2C) receptor superagonist, with no observed impact on 5-HT2B and 5-HT2A receptor subtypes, is being evaluated in a global Phase 3 clinical program (the DEEp Program). The FDA has granted Breakthrough Therapy designation for bexicaserin for the treatment of seizures associated with Developmental and Epileptic Encephalopathies (DEEs) for patients two years of age and older. Longboard is also evaluating LP659, an oral, centrally acting, sphingosine-1-phosphate (S1P) receptor subtypes 1 and 5 modulator, which is in development for the potential treatment of rare neuroinflammatory conditions. Longboard recently completed a Phase 1 single-ascending dose (SAD) clinical trial for LP659 in healthy volunteers.

Bexicaserin and LP659 are investigational compounds that are not approved for marketing by the U.S. Food and Drug Administration (FDA) or any other regulatory authority.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release are forward-looking statements that involve a number of risks and uncertainties. In some cases, you can identify forward-looking statements by words such as “focus”, “will”, “working to”, “designed to”, “plans”, “potential” or the negative, plural or other tenses of these words, references to future dates or time periods, or other comparable language, and they may include, without limitation, statements about stock options and RSUs and statements about Longboard’s product candidates, clinical and preclinical programs, focus and work. For such statements, Longboard claims the protection of the Private Securities Litigation Reform Act of 1995. Actual events or results may differ materially from Longboard’s expectations. Factors that could cause actual results to differ materially from those stated or implied by Longboard’s forward-looking statements are disclosed in Longboard’s filings with the Securities and Exchange Commission (SEC). These forward-looking statements represent Longboard’s judgment as of the time of this release. Longboard disclaims any intent or obligation to update these forward-looking statements, other than as may be required under applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241004357703/en/

CORPORATE CONTACT:

Megan E. Knight

VP, Head of Investor Relations

IR@longboardpharma.com

858.789.9283

Source: Longboard Pharmaceuticals, Inc.

FAQ

How many shares of common stock were granted as stock options by Longboard Pharmaceuticals (LBPH) on September 30, 2024?

Longboard Pharmaceuticals (LBPH) granted non-qualified stock options to purchase an aggregate of 56,000 shares of its common stock on September 30, 2024.

What is the exercise price of the stock options granted by Longboard Pharmaceuticals (LBPH) on September 30, 2024?

The stock options granted by Longboard Pharmaceuticals (LBPH) on September 30, 2024, have an exercise price of $33.33 per share, equal to the closing price of the Common Stock on the Grant Date.

How many restricted stock units (RSUs) did Longboard Pharmaceuticals (LBPH) grant on September 30, 2024?

Longboard Pharmaceuticals (LBPH) granted 35,000 restricted stock units (RSUs) on September 30, 2024.

What is the vesting schedule for the stock options granted by Longboard Pharmaceuticals (LBPH) on September 30, 2024?

The stock options will vest 25% after one year, with the remaining 75% vesting in 36 equal monthly installments thereafter, subject to continued employment.