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

Rhea-AI Summary

NeuroOne Medical Technologies Corporation (NASDAQ: NMTC) announced on September 22, 2022, the approval of equity awards to new employees as part of the 2021 Inducement Plan. Effective September 20, 2022, these individuals were granted options to purchase 1,000 shares at an exercise price of $1.97, based on the closing stock price on the grant date. The options vest over four years, with 25% vesting after one year and the remainder vesting monthly after that, contingent on continuing employment.

Positive

• Granting of stock options may help attract and retain talent.
• Equity awards align employee interests with shareholder value.

Negative

• The equity awards may dilute existing shareholders' ownership.

EDEN PRAIRIE, Minn., Sept. 22, 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 September 20, 2022, the Compensation Committee of the Board of Directors approved two equity awards under the NeuroOne Medical Technologies Corporation 2021 Inducement Plan (the "Inducement Plan"), as a material inducement to the individuals entering into employment with the Company. The equity awards were 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 individuals, who were not previously employees or directors of NeuroOne, each received an option to purchase 1,000 shares of the Company's common stock. The option awards have an exercise price of $1.97 per share, the closing price of NeuroOne's common stock on September 20, 2022, the date of the grant. The options have a ten-year term and vest as to 25% on the first anniversary of each new hire's start date, 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 equity awards did NeuroOne grant on September 20, 2022?

NeuroOne granted options to purchase 1,000 shares to new employees at an exercise price of $1.97 per share.

Under which plan were the equity awards at NeuroOne approved?

The equity awards were approved under the 2021 Inducement Plan.

What is the vesting schedule for the options granted by NeuroOne?

The options vest 25% on the first anniversary and the remaining shares vest monthly over 36 months.

How do the stock options impact NeuroOne shareholders?

The stock options may dilute the ownership percentage of existing shareholders.

When was the announcement regarding the equity awards made?

The announcement was made on September 22, 2022.