Organovo Holdings, Inc. Reports Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Organovo Holdings, Inc. (Nasdaq: ONVO) announced the granting of a stock option for 50,000 shares to a new employee, under the 2021 Inducement Equity Incentive Plan. The option has an exercise price of $2.75 per share and a vesting schedule over four years. This move is part of the company’s efforts to attract talent while complying with Nasdaq Listing Rule 5635(c)(4). Organovo is focused on creating 3D human tissues for drug development, utilizing innovative technology to replicate essential characteristics of human biology.

Positive

• Stock option granted to attract new talent.
• Exercise price set at $2.75 per share, aligning with market price.
• Long-term vesting schedule may encourage employee retention.

Negative

• Company relies on stock options for employee retention amidst potential hiring challenges.

SAN DIEGO, Feb. 18, 2022 (GLOBE NEWSWIRE) -- Organovo Holdings, Inc. (Nasdaq: ONVO) (“Organovo”), today announced that it has granted a stock option to purchase 50,000 shares of common stock to one new employee. The stock option was granted pursuant to the Organovo Holdings, Inc. 2021 Inducement Equity Incentive Plan and granted as an inducement material to the new employee entering into employment with Organovo in accordance with Nasdaq Listing Rule 5635(c)(4).

The stock option has an exercise price of $2.75 per share, the closing price per share of Organovo’s common stock, as reported by Nasdaq, on February 14, 2022, the date of grant. The stock option has a ten year term and vests over four years, with 25% of the shares underlying the option vesting one year from the grant date and the remaining shares underlying the option vest on a quarterly basis over the next 12 quarters (for a total vesting period of 48 months), in each case provided that the new employee remains continuously employed by Organovo through the applicable vesting date, inclusive.

Organovo is providing this information in accordance with Nasdaq Listing Rule 5635(c)(4).

About Organovo Holdings, Inc.

Organovo is an early-stage biotechnology company that is developing and utilizing highly customized 3D human tissues as dynamic models of healthy and diseased human biology for drug development. The company’s proprietary technology is being used to build functional 3D human tissues that mimic key aspects of native human tissue composition, architecture, function and disease. Organovo’s advances include cell type-specific compartments, prevalent intercellular tight junctions, and the formation of microvascular structures. Management believes these attributes can enable critical complex, multicellular disease models that can be used to develop clinically effective drugs for selected therapeutic areas.

Forward-Looking Statements

Any statements contained in this press release that do not describe historical facts constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties, including risks associated with Organovo’s employees and equity plans. These risks and uncertainties and other factors are identified and described in more detail in the Company’s filings with the SEC, including its most recent Annual Report on Form 10-K filed with the SEC on June 15, 2021, as such risk factors are updated in its most recently filed Quarterly Report on Form 10-Q filed with the SEC on February 14, 2022. You should not place undue reliance on these forward-looking statements, which speak only as of the date that they were made. These cautionary statements should be considered with any written or oral forward-looking statements that the Company may issue in the future. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to reflect actual results, later events or circumstances or to reflect the occurrence of unanticipated events. 

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FAQ

What is the recent stock option grant by Organovo Holdings?

Organovo granted a stock option for 50,000 shares to a new employee, with an exercise price of $2.75 per share.

What is the vesting period for the new stock option at Organovo?

The stock option vests over four years, with 25% vesting after one year and the remainder vesting quarterly over the next 12 quarters.

What Nasdaq rule did Organovo comply with for the stock option grant?

Organovo's stock option grant complies with Nasdaq Listing Rule 5635(c)(4).

How does the stock option grant affect Organovo's employee retention?

The stock option is designed to retain the new employee over a four-year period.

When was the stock option for Organovo granted?

The stock option was granted on February 14, 2022.