Passage Bio Announces Inducement Awards Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Passage Bio (Nasdaq: PASG) announced the granting of inducement stock options to its new Chief Financial Officer, Simona King, and eight additional hires. Ms. King received 360,000 shares with an exercise price of $11.43, reflecting the closing stock price on August 23, 2021. The other employees were awarded options for 205,100 shares at an exercise price of $10.84, based on the closing price on August 16, 2021. These stock options will vest over four years, aligned with Nasdaq listing Rule 5635(c)(4).

Positive

• Attraction of experienced CFO and team members.
• Inducement options align employee interests with company performance.
• Potential for enhanced operational and financial oversight.

Negative

• Options granted at prices close to the market price may not incentivize performance significantly.

PHILADELPHIA, Aug. 27, 2021 (GLOBE NEWSWIRE) -- Passage Bio, Inc. (Nasdaq: PASG), a clinical-stage genetic medicines company focused on developing transformative therapies for central nervous system (CNS) disorders, today announced it has granted inducement awards to the company’s newly appointed Chief Financial Officer, Simona King, and eight other individuals under an inducement plan adopted by its board of directors.

Passage Bio granted an option to purchase 360,000 shares of common stock to Ms. King as a material inducement to her employment (the King Options). The King Options have an exercise price of $11.43 per share, which is equal to the closing price of Passage Bio’s common stock on August 23, 2021, the grant date of the King Options.

Passage Bio also granted options to purchase an aggregate of 205,100 shares to eight other newly hired employees as a material inducement to their employment (the Employee Options and together with the King Options, the Inducement Options). The Employee Options have an exercise price of $10.84, which is equal to the closing price of Passage Bio’s common stock on August 16, 2021, the grant date of the Employee Options.

The Inducement Options were granted in accordance with Nasdaq listing Rule 5635(c)(4). The shares subject to the Inducement Options will vest over four years, with 25 percent of the shares vesting on the one-year anniversary of the applicable grant date, and the remainder vesting in 36 equal monthly installments thereafter, subject to each employee’s continued employment. The stock options have a 10-year term and are subject to the terms and conditions of the stock option agreement.

About Passage Bio

At Passage Bio (Nasdaq: PASG), we are on a mission to provide life-transforming genetic medicines for patients with CNS diseases that replace their suffering with boundless possibility, all while building lasting relationships with the communities we serve. Based in Philadelphia, PA, our company has established a strategic collaboration and licensing agreement with the renowned University of Pennsylvania’s Gene Therapy Program to conduct our discovery and IND-enabling preclinical work. This provides our team with enhanced access to a broad portfolio of gene therapy candidates and future gene therapy innovations that we then pair with our deep clinical, regulatory, manufacturing and commercial expertise to rapidly advance our robust pipeline of optimized gene therapies into clinical testing. As we work with speed and tenacity, we are always mindful of patients who may be able to benefit from our therapies. More information is available at www.passagebio.com.
Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of, and made pursuant to the safe harbor provisions of, the Private Securities Litigation Reform Act of 1995, including, but not limited to: our expectations about timing and execution of anticipated milestones, including initiation of clinical trials and the availability of clinical data from such trials; our expectations about our collaborators’ and partners’ ability to execute key initiatives; our expectations about manufacturing plans and strategies; and the ability of our lead product candidates to treat their respective target monogenic CNS disorders. These forward-looking statements may be accompanied by such words as “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “might,” “plan,” “potential,” “possible,” “will,” “would,” and other words and terms of similar meaning. These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements, including: our ability to develop and obtain regulatory approval for our product candidates; the timing and results of preclinical studies and clinical trials; risks associated with clinical trials, including our ability to adequately manage clinical activities, unexpected concerns that may arise from additional data or analysis obtained during clinical trials, regulatory authorities may require additional information or further studies, or may fail to approve or may delay approval of our drug candidates; the occurrence of adverse safety events; the risk that positive results in a preclinical study or clinical trial may not be replicated in subsequent trials or success in early stage clinical trials may not be predictive of results in later stage clinical trials; failure to protect and enforce our intellectual property, and other proprietary rights; our dependence on collaborators and other third parties for the development and manufacture of product candidates and other aspects of our business, which are outside of our full control; risks associated with current and potential delays, work stoppages, or supply chain disruptions caused by the coronavirus pandemic; and the other risks and uncertainties that are described in the Risk Factors section in documents the company files from time to time with the Securities and Exchange Commission (SEC), and other reports as filed with the SEC. Passage Bio undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

For further information, please contact:

Passage Bio Investors:

Stuart Henderson
Passage Bio
267-866-0114
shenderson@passagebio.com 

Passage Bio Media:

Gwen Fisher
Passage Bio
215-407-1548
gfisher@passagebio.com 

FAQ

What stock options were granted to Simona King at Passage Bio?

Simona King was granted options to purchase 360,000 shares at an exercise price of $11.43.

How many shares were granted to other employees at Passage Bio?

Passage Bio granted options to purchase an aggregate of 205,100 shares to eight other newly hired employees.

What is the exercise price for the options granted to employees at Passage Bio?

The exercise price for the options granted to employees is $10.84.

How will the stock options for Passage Bio employees vest?

The stock options will vest over four years, with 25% vesting after one year and the remainder vesting monthly thereafter.

What regulatory rule is Passage Bio following for these inducement options?

Passage Bio is granting these inducement options in accordance with Nasdaq listing Rule 5635(c)(4).