Liquidia Corporation Reports Inducement Grant under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Liquidia Corporation (NASDAQ: LQDA) announced the approval of an employment inducement equity award for Dr. Rajeev Saggar, its new Chief Medical Officer. The award consists of a stock option for 200,000 shares under the Liquidia Corporation 2022 Inducement Plan, granted as a material inducement for his employment. The stock option is exercisable at $3.73 per share, with a ten-year term and a four-year vesting schedule. This strategic move aligns with Liquidia's focus on developing treatments for pulmonary hypertension and related conditions.

Positive

• Granting of stock options could attract skilled executives like Dr. Saggar.
• Dr. Saggar's expertise may enhance Liquidia's development efforts in pulmonary hypertension.

Negative

• None.

MORRISVILLE, N.C., July 21, 2022 (GLOBE NEWSWIRE) -- Liquidia Corporation (NASDAQ: LQDA) today announced that, in connection with the previously announced appointment of Rajeev Saggar, M.D., Liquidia’s new Chief Medical Officer, it has agreed to grant him an employment inducement equity award. As previously disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission on June 22, 2022 (“Form 8-K”), Liquidia has agreed to grant Dr. Saggar initial equity awards upon his commencement of employment, which includes a stock option exercisable for 200,000 shares of Liquidia’s common stock under the Liquidia Corporation 2022 Inducement Plan (the “Inducement Plan”). The stock option was granted as an inducement material to Dr. Saggar’s acceptance of employment with Liquidia (or one of its subsidiaries) as a component of his employment compensation in accordance with Nasdaq Listing Rule 5635(c)(4).

The Inducement Plan is used exclusively for the grant of non-statutory stock option awards to individuals who were not previously employees of Liquidia (or following a bona fide period of non-employment), as an inducement material to such individual’s entering into employment with Liquidia, pursuant to Rule 5635(c)(4) of the Nasdaq Listing Rules.

The stock option is exercisable at a price of $3.73 per share, the closing price of Liquidia’s common stock on July 18, 2022, the grant date. The stock option has up to a ten-year term and vests over four years, with 25% of the award vesting on the first anniversary of the grant date, and the balance of the award will vest in equal monthly installments over the following 36 months thereafter, subject to continued service through the applicable vesting dates (subject to the terms and conditions of the stock option agreement covering the grant). The stock option is subject to the terms and conditions of the Inducement Plan and is described in the Form 8-K.

About Liquidia Corporation

Liquidia Corporation is a biopharmaceutical company focused on the development and commercialization of products in pulmonary hypertension and other applications of its PRINT^® Technology. The company operates through its two wholly owned subsidiaries, Liquidia Technologies, Inc. and Liquidia PAH, LLC. Liquidia Technologies has developed YUTREPIA™ (treprostinil) inhalation powder for the treatment of pulmonary arterial hypertension (PAH). Liquidia PAH provides the commercialization for rare disease pharmaceutical products, such as generic Treprostinil Injection. For more information, please visit www.liquidia.com.

Contact Information

Media & Investors:
Jason Adair
Senior Vice President, Corporate Development and Strategy
919.328.4400
jason.adair@liquidia.com

FAQ

What stock options were granted to Dr. Rajeev Saggar at Liquidia Corporation?

Dr. Rajeev Saggar was granted a stock option for 200,000 shares, exercisable at $3.73 per share.

How long is the vesting period for Dr. Saggar's stock option at Liquidia?

The stock option vests over four years, with 25% vesting after the first year.

What is the purpose of the Inducement Plan at Liquidia Corporation?

The Inducement Plan is designed to grant stock options to individuals not previously employed by Liquidia as an inducement to accept employment.

When was the stock option for Dr. Saggar granted?

The stock option was granted on July 18, 2022.

What is the significance of Dr. Saggar's appointment for Liquidia Corporation?

His appointment could enhance Liquidia's capabilities in developing treatments for pulmonary hypertension.