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

Rhea-AI Summary

On June 5, 2024, Seres Therapeutics (Nasdaq: MCRB) announced the granting of inducement equity awards to a new employee. The Compensation and Talent Committee allocated 6,188 shares, divided into 4,125 stock options and 2,063 restricted stock units (RSUs). These grants are part of the 2022 Employment Inducement Award Plan, adopted in December 2022, aiming to attract new talent under Nasdaq's Listing Rule 5635(c)(4). The stock options have an exercise price of $1.14 per share and vest incrementally over four years. Similarly, the RSUs vest over a four-year period, with the first vesting date one year from the employee's hire date.

Positive

• Granted 6,188 equity shares to attract new talent.
• Stock options priced at $1.14 per share.
• Inducement Plan targets strategic hiring under Nasdaq rule.

Negative

• Potential dilution of existing shareholder value due to new equity grants.
• Gradual vesting may delay realization of employee contributions.

CAMBRIDGE, Mass, June 07, 2024 (GLOBE NEWSWIRE) -- Seres Therapeutics, Inc. (Nasdaq: MCRB) (“Seres” or the “Company”), a leading microbiome therapeutics company, today announced that on June 5, 2024, the Compensation and Talent Committee of Seres’ board of directors granted inducement equity grants covering an aggregate of 6,188 shares of its common stock to one new employee, consisting of stock options to purchase 4,125 shares of common stock and restricted stock units (“RSUs”) covering 2,063 shares of its common stock.

These stock options and inducement RSUs are subject to the terms of the Seres Therapeutics, Inc. 2022 Employment Inducement Award Plan (the “Inducement Plan”).

The Inducement Plan is used exclusively for the grant of equity awards to individuals as an inducement material to their entering into employment with Seres pursuant to Nasdaq Listing Rule 5635(c)(4). The Inducement Plan was adopted by Seres’ board of directors in December 2022.

The stock options have an exercise price of $1.14 per share. Each option will vest as to 25% of the total number of shares subject to the option on the first anniversary of the individual’s date of hire and as to 6.25% of the total number of shares subject to the option upon a completion of each three full months of service to the Company thereafter. The RSUs vest as to 25% of an award on the first 15^th day of a calendar month that immediately follows the first anniversary of the individual’s date of hire and as to an additional 6.25% of the award, upon completion of each three full months of service to the Company thereafter.

About Seres Therapeutics
Seres Therapeutics, Inc. (Nasdaq: MCRB) is a commercial-stage company developing novel microbiome therapeutics for serious diseases. For more information, please visit www.serestherapeutics.com.

IR and PR Contact
IR@serestherapeutics.com

FAQ

What is the significance of Seres Therapeutics' inducement equity grants announced on June 5, 2024?

The grants aim to attract new talent, offering 6,188 shares divided into stock options and RSUs under the Nasdaq Listing Rule 5635(c)(4).

What are the terms of the stock options granted by Seres Therapeutics?

The stock options have an exercise price of $1.14 per share and vest incrementally over four years.

How do the RSUs granted by Seres Therapeutics vest?

The RSUs vest as to 25% of an award on the first anniversary of the hire date and 6.25% every three months thereafter.

What is the purpose of Seres Therapeutics' 2022 Employment Inducement Award Plan?

The plan aims to attract new employees under Nasdaq Listing Rule 5635(c)(4) by offering equity awards.