Intellia Therapeutics Reports Inducement Grants under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Intellia Therapeutics (NASDAQ:NTLA), a leading clinical-stage gene editing company, has announced inducement grants for its new Executive Vice President and Chief Financial Officer, Edward Dulac. The grants, awarded on July 22, 2024, include:

96,219 non-qualified stock options with an exercise price of $25.33 per share, vesting over three years; 66,324 time-based restricted stock units (RSUs) vesting annually over three years; 33,162 performance-based RSUs tied to total stockholder return over three years; and 30,000 performance-based RSUs (at target) linked to development milestones over three years.

These grants were made outside of Intellia's stockholder-approved equity incentive plans, under the 2024 Inducement Plan adopted in June 2024, in accordance with Nasdaq Listing Rule 5635(c)(4).

Positive

• Attraction of high-level executive talent with Edward Dulac as new EVP and CFO
• Implementation of performance-based RSUs tied to stockholder return and development milestones
• Alignment of executive compensation with company performance and shareholder interests

Negative

• Potential dilution of existing shareholders due to new stock options and RSUs

CAMBRIDGE, Mass., July 24, 2024 (GLOBE NEWSWIRE) -- Intellia Therapeutics, Inc. (NASDAQ:NTLA), a leading clinical-stage gene editing company focused on revolutionizing medicine with CRISPR-based therapies, today announced that it awarded inducement grants on July 22, 2024 to its Executive Vice President and Chief Financial Officer, Edward Dulac, under Intellia’s 2024 Inducement Plan as a material inducement to employment.

The inducement grants consisted of non-qualified stock options to purchase 96,219 shares of Intellia’s common stock with an exercise price of $25.33 per share, the closing price of Intellia’s common stock as reported by Nasdaq on July 22, 2024, with 33% of the options underlying the option award vesting on the first anniversary of the grant date and the remainder vesting monthly thereafter until fully vested on the third anniversary of the grant date; time-based restricted stock units (“RSUs”) for 66,324 shares of Intellia’s common stock, with one-third of the shares underlying the RSU award vesting on each of the three consecutive anniversaries of the grant date; performance-based RSUs for 33,162 shares of Intellia’s common stock, with vesting criteria linked directly to Intellia’s total stockholder return over a three-year period compared to the companies comprising the Nasdaq Biotechnology Index at the beginning of the performance period; and performance-based RSUs for 30,000 shares (at target) of Intellia’s common stock, with vesting criteria linked directly to certain development milestones over a three-year period.

All equity vesting is subject to Mr. Dulac’s continued service as an employee of, or other service provider to, Intellia through the applicable vesting dates.

All of the above-described awards were granted outside of Intellia’s stockholder-approved equity incentive plans pursuant to Intellia’s 2024 Inducement Plan, which was adopted by the board of directors in June 2024. The awards were approved by a majority of the independent directors of Intellia’s board of directors as a material inducement to Mr. Dulac’s entering into employment with Intellia in accordance with Nasdaq Listing Rule 5635(c)(4).

About Intellia Therapeutics

Intellia Therapeutics, Inc. (NASDAQ:NTLA) is a leading clinical-stage gene editing company focused on revolutionizing medicine with CRISPR-based therapies. The company’s in vivo programs use CRISPR to enable precise editing of disease-causing genes directly inside the human body. Intellia’s ex vivo programs use CRISPR to engineer human cells outside the body for the treatment of cancer and autoimmune diseases. Intellia’s deep scientific, technical and clinical development experience, along with its people, is helping set the standard for a new class of medicine. To harness the full potential of gene editing, Intellia continues to expand the capabilities of its CRISPR-based platform with novel editing and delivery technologies. Learn more at intelliatx.com and follow us @intelliatx.

Intellia Contacts:

Investors:
Ian Karp
Senior Vice President, Investor Relations and Corporate Communications
ian.karp@intelliatx.com

Lina Li
Senior Director, Investor Relations and Corporate Communications
lina.li@intelliatx.com

FAQ

What inducement grants did Intellia Therapeutics (NTLA) award to its new CFO?

Intellia awarded its new CFO, Edward Dulac, 96,219 non-qualified stock options, 66,324 time-based RSUs, 33,162 performance-based RSUs tied to stockholder return, and 30,000 performance-based RSUs linked to development milestones on July 22, 2024.

What is the vesting schedule for the stock options granted by Intellia (NTLA)?

The stock options vest 33% on the first anniversary of the grant date, with the remainder vesting monthly until fully vested on the third anniversary.

How are the performance-based RSUs structured in Intellia's (NTLA) inducement grant?

Intellia granted two types of performance-based RSUs: 33,162 shares tied to total stockholder return over three years compared to the Nasdaq Biotechnology Index, and 30,000 shares (at target) linked to specific development milestones over three years.

Under what plan were these inducement grants awarded by Intellia Therapeutics (NTLA)?

The inducement grants were awarded under Intellia's 2024 Inducement Plan, which was adopted by the board of directors in June 2024, outside of the company's stockholder-approved equity incentive plans.