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

Rhea-AI Summary

Praxis Precision Medicines (Nasdaq: PRAX) announced that its Compensation Committee has granted non-qualified stock options and restricted stock units to a new non-executive employee under its 2024 Inducement Plan. This plan is used to attract new talent under Nasdaq Listing Rule 5635(c)(4). The grants include stock options to purchase 300 shares and restricted stock units covering 225 shares of common stock. The exercise price of the options is $47.05 per share, matching the closing price on the Nasdaq Global Select Market as of June 3, 2024. The stock options will vest over four years, with 25% vesting after the first year and the remaining vesting equally over the subsequent three years. Similarly, the restricted stock units will vest in four equal annual installments, contingent on the employee’s continued employment.

Positive

• Praxis granted equity awards to attract new talent, signaling growth and expansion.
• Stock options and restricted stock units have defined vesting schedules, encouraging employee retention.
• The exercise price of $47.05 aligns with market value, indicating fair valuation.

Negative

• Only one non-executive employee benefits from the inducement plan, suggesting immediate impact.
• Vesting periods extend over four years, potentially delaying any immediate benefits for the company.

BOSTON, June 04, 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 June 3, 2024, the Compensation Committee of Praxis’ Board of Directors granted non-qualified stock option awards to purchase an aggregate of 300 shares of its common stock and restricted stock unit awards covering an aggregate of 225 shares of its common stock to one new non-executive employee 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 employee’s 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 $47.05 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 the employee’s continued employment with Praxis on each vesting dates. The restricted stock units will vest in four equal annual installments, subject to the 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

What did Praxis Precision Medicines announce on June 3, 2024?

Praxis announced inducement grants of stock options and restricted stock units to a new non-executive employee under its 2024 Inducement Plan.

What is the exercise price of the stock options granted by Praxis on June 3, 2024?

The exercise price of the stock options is $47.05 per share.

How many shares are covered by the stock options and restricted stock units granted by Praxis?

The stock options cover 300 shares, and the restricted stock units cover 225 shares.

What are the vesting periods for the stock options and restricted stock units granted by Praxis?

The stock options vest over four years with 25% vesting after the first year and the rest vesting monthly over three years. The restricted stock units vest in four equal annual installments.

Under which Nasdaq Listing Rule did Praxis grant the stock options and restricted stock units?

Praxis granted these options under Nasdaq Listing Rule 5635(c)(4).