MEI Pharma Announces Inducement Grant under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

MEI Pharma, Inc. (NASDAQ: MEIP) has announced the granting of inducement stock options for 306,000 shares to seven new employees, aimed to attract talent. The options, priced at $2.70, match the stock's closing price on the grant date and are part of MEI's 2021 Inducement Grant Equity Compensation Plan. They will vest over a period of time with a term of 10 years. This move aligns with Nasdaq Listing Rule 5635(c)(4), requiring prompt disclosure via press release. The company continues to focus on developing new cancer therapies, with zandelisib undergoing a Phase 2 clinical trial.

Positive

• Inducement stock options granted for 306,000 shares to attract new talent.
• Options priced at $2.70, aligning with the market price on the grant date.
• Support for future growth by bolstering the workforce.

Negative

• None.

SAN DIEGO, Aug. 2, 2021 /PRNewswire/ -- MEI Pharma, Inc. (NASDAQ: MEIP), a late-stage pharmaceutical company focused on advancing new therapies for cancer, today announced the grant of inducement stock options for an aggregate of 306,000 shares of the company's common stock to seven new employees. The stock options were granted as a material inducement to each new employee accepting employment with MEI in accordance with Nasdaq Listing Rule 5635(c)(4).

The stock options have a $2.70 exercise price per share, which is equal to the closing price of the Company's common stock on the grant date. The options were granted pursuant to the MEI Pharma, Inc. 2021 Inducement Grant Equity Compensation Plan, and have terms and conditions consistent with the MEI Pharma, Inc. Amended and Restated 2008 Stock Omnibus Equity Compensation Plan. The options were approved by the Company's Compensation Committee of the Board of Directors in reliance on the employment inducement exception under Rule 5635(c)(4), which requires that grants relying on this exception be disclosed promptly in a press release.

The options have a 10-year term and will vest 25% of the shares subject to the option on the 12-month anniversary of the date of the grant and 2.0833% of the shares subject to the option on the first day of each of the next 36 calendar months following the 12-month anniversary of the effective date, subject to earlier vesting in connection with a change of control.

About MEI Pharma
MEI Pharma, Inc. (Nasdaq: MEIP) is a late-stage pharmaceutical company focused on developing potential new therapies for cancer. MEI Pharma's portfolio of drug candidates contains four clinical-stage assets, including zandelisib, currently in an ongoing Phase 2 clinical trial which may support accelerated approval applications with the U.S. Food and Drug Administration. Each of MEI Pharma's pipeline candidates leverages a different mechanism of action with the objective of developing therapeutic options that are: (1) differentiated, (2) address unmet medical needs and (3) deliver improved benefit to patients either as standalone treatments or in combination with other therapeutic options. For more information, please visit www.meipharma.com. Follow us on Twitter @MEI_Pharma and on LinkedIn.

Forward-Looking Statements 
Under U.S. law, a new drug cannot be marketed until it has been investigated in clinical studies and approved by the FDA as being safe and effective for the intended use. Statements included in this press release that are not historical in nature are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. You should be aware that our actual results could differ materially from those contained in the forward-looking statements, which are based on management's current expectations and are subject to a number of risks and uncertainties, including, but not limited to, our failure to successfully commercialize our product candidates; costs and delays in the development and or FDA approval, or the failure to obtain such approval, of our product candidates; uncertainties or differences in interpretation in clinical trial results; the impact of the COVID-19 pandemic on our industry and individual companies, including on our counterparties, the supply chain, the execution of our clinical development programs, our access to financing and the allocation of government resources; our inability to maintain or enter into, and the risks resulting from our dependence upon, collaboration or contractual arrangements necessary for the development, manufacture, commercialization, marketing, sales and distribution of any products; competitive factors; our inability to protect our patents or proprietary rights and obtain necessary rights to third party patents and intellectual property to operate our business; our inability to operate our business without infringing the patents and proprietary rights of others; general economic conditions; the failure of any products to gain market acceptance; our inability to obtain any additional required financing; technological changes; government regulation; changes in industry practice; and one-time events. We do not intend to update any of these factors or to publicly announce the results of any revisions to these forward-looking statements.

 

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SOURCE MEI Pharma, Inc.

FAQ

What are the details of the inducement stock options granted by MEI Pharma?

MEI Pharma granted inducement stock options for 306,000 shares at an exercise price of $2.70, which is the closing price of the stock on the grant date.

How long is the term for the stock options granted by MEI Pharma?

The stock options have a term of 10 years.

Why were the inducement stock options granted to new employees at MEI Pharma?

The options were granted as a material inducement to attract new employees in accordance with Nasdaq Listing Rule 5635(c)(4).

What is the significance of the $2.70 exercise price for the options?

The $2.70 exercise price reflects the closing stock price on the grant date, ensuring alignment with the market value.

What is MEI Pharma's focus in the pharmaceutical industry?

MEI Pharma focuses on developing new therapies for cancer, with ongoing clinical trials for its drug candidates.