Mersana Therapeutics Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Mersana Therapeutics (NASDAQ:MRSN) announced on June 3, 2022, the grant of stock options and restricted stock units (RSUs) to 11 new employees, totaling 104,475 stock options and 72,600 RSUs. The options have an exercise price of $3.21 per share, matching the closing stock price on June 1, 2022, and will vest over four years. RSUs will vest in equal annual installments starting May 15, 2023. These awards are part of the company’s 2022 Inducement Stock Incentive Plan, aimed at attracting and retaining talent in its clinical-stage biopharmaceutical operations targeting cancer.

Positive

• Inducement awards for 11 new employees may enhance talent acquisition.
• Options granted at $3.21 per share align with the current market price, potentially motivating employees.

Negative

• The issuance of stock options and RSUs may lead to shareholder dilution.
• The company's reliance on employee stock options could indicate a need for competitive retention strategies.

CAMBRIDGE, Mass., June 03, 2022 (GLOBE NEWSWIRE) -- Mersana Therapeutics, Inc. (NASDAQ:MRSN), a clinical-stage biopharmaceutical company focused on discovering and developing a pipeline of antibody-drug conjugates (ADCs) targeting cancers in areas of high unmet medical need, today announced that on May 1, 2022, an authorized sub-committee of the Compensation Committee of the Board of Directors of Mersana granted inducement awards, consisting of stock options to purchase an aggregate of 104,475 shares of its common stock and restricted stock unit awards (RSUs) to acquire an aggregate of 72,600 shares of its common stock, to 11 new employees whose employment commenced in May 2022. The awards were granted pursuant to terms and conditions fixed by the Compensation Committee and as an inducement material to each new employee entering employment with Mersana in accordance with Nasdaq Listing Rule 5635(c)(4).

The option awards have an exercise price of $3.21 per share, which is equal to the closing price of Mersana’s common stock on June 1, 2022. Each option has a 10-year term and will vest over a period of four years, with 25% of the shares vesting on the one-year anniversary of the commencement of the employee’s employment and the remainder vesting in equal quarterly installments over the following three years, subject to the applicable employee’s continued service with Mersana on each such vesting date. The options are subject to the terms and conditions of Mersana’s 2022 Inducement Stock Incentive Plan and the terms and conditions of a stock option agreement covering each grant.

The RSUs will vest in four equal annual installments starting May 15, 2023, subject to the applicable employee’s continued service with Mersana on each such vesting date. The RSUs are subject to the terms and conditions of Mersana’s 2022 Inducement Stock Incentive Plan and the terms and conditions of an RSU agreement covering each grant.

About Mersana Therapeutics
Mersana Therapeutics is a clinical-stage biopharmaceutical company using its differentiated and proprietary ADC platforms to rapidly develop novel ADCs with optimal efficacy, safety and tolerability to meaningfully improve the lives of people fighting cancer. Mersana’s lead product candidate, upifitamab rilsodotin (UpRi), is a Dolaflexin ADC targeting NaPi2b and is being studied in UPLIFT, a single-arm registrational trial in patients with platinum-resistant ovarian cancer, as well as in UPGRADE, a Phase 1/2 umbrella trial evaluating UpRi in combination with other ovarian cancer therapies. Mersana’s early-stage programs include XMT-1660, a Dolasynthen ADC targeting B7-H4, and XMT-2056, a STING-agonist ADC developed using the company’s Immunosynthen platform and targeting a novel epitope of human epidermal growth factor receptor 2 (HER2). In addition, multiple partners are using Mersana’s platforms to advance their ADC pipelines. Mersana Therapeutics was recently named among the 2021 Top Places to Work in Massachusetts by The Boston Globe. Mersana routinely posts information that may be useful to investors on the “Investors and Media” section of its website at www.mersana.com.

Contact:
Jason Fredette
617-498-0020
jason.fredette@mersana.com

FAQ

What were the stock options granted by Mersana Therapeutics on June 3, 2022?

Mersana granted inducement awards including options for 104,475 shares and RSUs for 72,600 shares.

What is the exercise price for the stock options granted by Mersana?

The exercise price for the options is $3.21 per share, equal to the closing price on June 1, 2022.

When will the RSUs granted by Mersana vest?

The RSUs will vest in four equal annual installments starting May 15, 2023.

How many employees received stock options from Mersana on June 3, 2022?

Eleven new employees received the stock options.

What is Mersana Therapeutics focusing on with its antibody-drug conjugates?

Mersana is focused on developing ADCs targeting cancers with high unmet medical need.