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

Rhea-AI Summary

NeuroOne Medical Technologies Corporation (NASDAQ: NMTC) announced the approval of an equity award as part of its 2021 Inducement Plan, effective March 1, 2022. This award was granted to a new employee, providing them the option to purchase 10,000 shares at $1.95 per share, the closing price on the granting date. The award will vest 25% after one year and the rest in monthly installments over three years, contingent on continued employment. This move aligns with Nasdaq's regulations requiring public disclosure of non-stockholder approved equity awards.

Positive

• The equity award encourages employee retention and aligns interests with shareholders.
• The grant exempts NeuroOne from stockholder-approved equity plan requirements, streamlining hiring.

Negative

• None.

EDEN PRAIRIE, Minn., March 4, 2022 /PRNewswire/ -- NeuroOne Medical Technologies Corporation (NASDAQ: NMTC) ("NeuroOne" or the "Company"), a medical technology company focused on improving surgical care options and outcomes for patients suffering from neurological disorders today announced that, effective March 1, 2022, the Compensation Committee of the Board of Directors approved an equity award under the NeuroOne Medical Technologies Corporation 2021 Inducement Plan (the "Inducement Plan"), as a material inducement to an individual entering into employment with the Company. The equity award was approved in accordance with Nasdaq Listing Rule 5635(c)(4), which also requires a public announcement of awards that are not made under a stockholder approved equity plan. 

In connection with entering into employment with NeuroOne, the individual, who was not previously an employee or director of NeuroOne, received an option to purchase 10,000 shares of the Company's common stock. The option award has an exercise price of $1.95 per share, the closing price of NeuroOne's common stock on March 1, 2022, the date of the grant. The option has a ten-year term and vests as to 25% on March 1, 2023, with the remaining shares vesting in equal monthly installments on the last day of each month over the next thirty-six (36) months, provided the new hire's employment is continuing on each such date.

About NeuroOne

NeuroOne Medical Technologies Corporation is a developmental stage company committed to providing minimally invasive and hi-definition solutions for EEG recording, brain stimulation and ablation solutions for patients suffering from epilepsy, Parkinson's disease, dystonia, essential tremors, chronic pain due to failed back surgeries and other related neurological disorders that may improve patient outcomes and reduce procedural costs. For more information, visit https://www.n1mtc.com.

 

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SOURCE NeuroOne Medical Technologies Corporation

FAQ

What is the purpose of the equity award granted by NeuroOne (NMTC)?

The equity award aims to attract and retain new talent by providing stock options as part of the employment package.

When was the equity award granted by NeuroOne Medical Technologies Corporation?

The equity award was granted effective March 1, 2022.

What is the exercise price of the stock options granted by NeuroOne?

The exercise price for the stock options is $1.95 per share.

How many shares were granted to the new employee at NeuroOne?

The new employee received the option to purchase 10,000 shares of NeuroOne's common stock.

What is the vesting schedule for the equity award at NeuroOne?

The equity award vests 25% after one year and the remaining shares vest monthly over the next 36 months.