Praxis Precision Medicines, Inc. Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Praxis Precision Medicines, Inc. announced the granting of non-qualified stock options and restricted stock units to six new non-executive employees under the 2024 Inducement Plan. The options have an exercise price of $55.16 per share and will vest over four years, while the restricted stock units will vest in four equal annual installments. This move aims to attract and retain top talent for the company.

Positive

• The granting of stock options and restricted stock units under the 2024 Inducement Plan will incentivize new employees to align their interests with the company's success.

• The use of equity awards as inducements material to employees' entering into employment with Praxis demonstrates the company's commitment to attracting top talent.

Negative

• The dilution of shares due to the grant of additional stock options and restricted stock units may impact existing shareholders' ownership percentages.

• If employees leave the company before the options and units fully vest, it could lead to potential financial losses for both the employees and Praxis.

BOSTON, May 03, 2024 (GLOBE NEWSWIRE) -- Praxis Precision Medicines, Inc. (Nasdaq: PRAX), a clinical-stage biopharmaceutical company translating genetic insights into the development of therapies for central nervous system (CNS) disorders characterized by neuronal excitation-inhibition imbalance, today announced that on May 1, 2024, the Compensation Committee of Praxis’ Board of Directors granted non-qualified stock option awards to purchase an aggregate of 7,800 shares of its common stock and restricted stock unit awards covering an aggregate of 5,851 shares of its common stock to six new non-executive employees under the Praxis Precision Medicines, Inc. 2024 Inducement Plan (the 2024 Inducement Plan). The stock options and restricted stock units were granted as inducements material to the employees’ entering into employment with Praxis in accordance with Nasdaq Listing Rule 5635(c)(4).

The 2024 Inducement Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of Praxis, or following a bona fide period of non-employment, as an inducement material to such individuals’ entering into employment with Praxis, pursuant to Nasdaq Listing Rule 5635(c)(4).

The options have an exercise price of $55.16 per share, which is equal to the closing price of Praxis’ common stock on the Nasdaq Global Select Market on the date of grant. The options will vest over four years, with 25% of the options vesting on the first anniversary of the vesting commencement date and the remaining options vesting in equal monthly installments over the three years thereafter, subject to each employee’s continued employment with Praxis on each vesting dates. The restricted stock units will vest in four equal annual installments, subject to each employee’s continued employment with Praxis on each vesting date.

About Praxis
Praxis Precision Medicines is a clinical-stage biopharmaceutical company translating insights from genetic epilepsies into the development of therapies for CNS disorders characterized by neuronal excitation-inhibition imbalance. Praxis is applying genetic insights to the discovery and development of therapies for rare and more prevalent neurological disorders through our proprietary small molecule platform, Cerebrum™, and antisense oligonucleotide (ASO) platform, Solidus™, using our understanding of shared biological targets and circuits in the brain. Praxis has established a diversified, multimodal CNS portfolio including multiple programs across movement disorders and epilepsy, with four clinical-stage product candidates. For more information, please visit www.praxismedicines.com and follow us on Facebook, LinkedIn and Twitter/X.

FAQ

How many shares of common stock were granted under the 2024 Inducement Plan?

7,800 shares of common stock and 5,851 shares of restricted stock units were granted to new non-executive employees.

What is the exercise price of the options granted?

The exercise price of the options is $55.16 per share.

How will the options and restricted stock units vest?

The options will vest over four years, with 25% vesting on the first anniversary and the rest in equal monthly installments over the next three years. The restricted stock units will vest in four equal annual installments.

What is the purpose of the 2024 Inducement Plan?

The plan is used to grant equity awards to new employees as inducements for entering into employment with Praxis, in accordance with Nasdaq Listing Rule 5635(c)(4).