Oncternal Therapeutics Reports Granting of Inducement Awards Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Oncternal Therapeutics (Nasdaq: ONCT) announced on August 2, 2021, the granting of inducement awards to two new non-executive employees under its 2021 Employment Inducement Incentive Award Plan. The awards include options for a total of 216,400 shares of common stock, with a 10-year term and an exercise price matching the stock's closing price on the grant date. Vesting occurs over four years, beginning with 25% after one year. The compensation committee, composed of independent directors, approved these awards in compliance with Nasdaq regulations.

Positive

• Inducement awards granted to two new employees, potentially enhancing talent acquisition.
• Options to purchase 216,400 shares may motivate new hires towards company growth.

Negative

• The awards represent a dilution of shares, which could negatively impact existing shareholders.

SAN DIEGO, Aug. 02, 2021 (GLOBE NEWSWIRE) -- Oncternal Therapeutics, Inc. (Nasdaq: ONCT), a clinical-stage biopharmaceutical company focused on the development of novel oncology therapies, today announced that it has granted inducement awards to two new non-executive employees.

The awards were made on August 2, 2021 under Oncternal’s 2021 Employment Inducement Incentive Award Plan, which provides for the granting of equity awards to new employees of Oncternal as an inducement to join the Company. The awards to the two employees consist of options to purchase an aggregate of 216,400 shares of Oncternal common stock. The options have a 10-year term and an exercise price equal to the closing price of Oncternal’s common stock on the date of grant. The options vest over a four-year period, with 25% of the options vesting on the first anniversary of each new employee’s employment start date, and the rest vesting in equal monthly installments over three years thereafter. The awards were approved by Oncternal’s compensation committee, comprised entirely of independent directors, as required by Nasdaq Rule 5635(c)(4), and were granted as an inducement material to the employees entering into employment with Oncternal in accordance with Nasdaq Rule 5635(c)(4).

About Oncternal Therapeutics

Oncternal Therapeutics is a clinical-stage biopharmaceutical company focused on the development of novel oncology therapies for the treatment of cancers with critical unmet medical need. Oncternal focuses drug development on promising yet untapped biological pathways implicated in cancer generation or progression. The clinical pipeline includes cirmtuzumab, an investigational monoclonal antibody designed to inhibit the ROR1 pathway, a type I tyrosine kinase-like orphan receptor, that is being evaluated in a Phase 1/2 clinical trial in combination with ibrutinib for the treatment of patients with mantle cell lymphoma (MCL) and chronic lymphocytic leukemia (CLL) and in an investigator-sponsored, Phase 1b clinical trial in combination with paclitaxel for the treatment of women with HER2-negative metastatic or locally advanced, unresectable breast cancer, as well as a Phase 2 clinical trial of cirmtuzumab in combination with venetoclax, a Bcl-2 inhibitor, in patients with relapsed/refractory CLL. Oncternal is also developing a chimeric antigen receptor T cell (CAR-T) therapy that targets ROR1, which is currently in preclinical development as a potential treatment for hematologic cancers and solid tumors. The clinical pipeline also includes TK216, an investigational targeted small-molecule inhibitor of the ETS family of oncoproteins, that is being evaluated in a Phase 1/2 clinical trial for patients with Ewing sarcoma alone and in combination with vincristine chemotherapy. More information is available at https://oncternal.com.

Oncternal Contacts:

Investors
Richard Vincent
858-434-1113
rvincent@oncternal.com

Media
Corey Davis, Ph.D.
LifeSci Advisors
212-915-2577
cdavis@lifesciadvisors.com

FAQ

What is the significance of the inducement awards announced by Oncternal Therapeutics on August 2, 2021?

The inducement awards are intended to attract new talent to Oncternal, potentially strengthening its workforce.

How many shares were granted as inducement awards by Oncternal Therapeutics?

Oncternal Therapeutics granted options to purchase a total of 216,400 shares.

What are the terms of the inducement awards granted by Oncternal on August 2, 2021?

The options have a 10-year term, with an exercise price equal to the stock’s closing price on the grant date and vest over four years.

Who approved the inducement awards for Oncternal Therapeutics?

The awards were approved by Oncternal’s compensation committee, which consists of independent directors.

What could be the impact of the inducement awards on existing shareholders of Oncternal Therapeutics?

The inducement awards could lead to share dilution, potentially impacting the value for existing shareholders.