ProPhase Labs Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

ProPhase Labs, Inc. (NASDAQ: PRPH) announced the grant of an inducement stock option to Dennis Grishin, its new Chief Scientific Officer, allowing him to purchase up to 250,000 shares at an exercise price of $13.00 per share. This option vests 50% immediately and the remainder in annual installments over two years, with a total exercisable period of 7 years. This grant complies with Nasdaq Rule 5635(c)(4) and was not part of the stockholder-approved equity plan. ProPhase continues to advance genomics testing and diagnostics services.

Positive

• Inducement stock option granted to new Chief Scientific Officer may attract talent.
• Option allows purchase of shares at $13.00, potentially benefiting long-term growth.

Negative

• None.

Garden City, NY, July 21, 2022 (GLOBE NEWSWIRE) -- ProPhase Labs, Inc. (NASDAQ: PRPH), a diversified diagnostics and genomics company, today announced that it has granted an inducement stock option to purchase up to 250,000 shares of the Company’s common stock to Dennis Grishin, who recently joined the Company as Chief Scientific Officer of ProPhase Precision Medicine, Inc. This award was made in accordance with the employment inducement award exemption provided by Nasdaq Rule 5635(c)(4) and was therefore not awarded under the Company’s stockholder approved equity plan. The option award will vest as follows, contingent upon continued service: 50% is immediately vested, and the balance will vest in equal annual installments over the next two years. The options have an exercise price of $13.00 per share and will be exercisable for a period of 7 years.

About ProPhase Labs

ProPhase Labs, Inc. (Nasdaq: PRPH) (“ProPhase”) is a diversified diagnostics, genomics and biotech company that seeks to leverage its CLIA lab services to provide whole genome sequencing and research direct to consumers and build a genomics data base to be used for further research. The Company continues to provide traditional CLIA molecular laboratory services, including COVID-19 testing. The Company also continues to operte a state-of the art contract manufacturing facility and the TK Supplements line of dietary supplements, distributed in food, drug and mass stores through the country.

ProPhase Diagnostics, Inc., a wholly-owned subsidiary of ProPhase, offers a broad array of clinical diagnostic and testing services at its CLIA certified laboratories including state-of-the-art polymerase chain reaction (PCR) testing for SARS-CoV-2 (COVID-19). Critical to COVID-19 testing, ProPhase Diagnostics provides fast turnaround times for results. ProPhase Diagnostics also offers best-in-class rapid antigen and antibody/immunity tests to broaden its COVID-19 testing beyond RT-PCR testing. Announced plans for expansion of lab to include traditional clinical testing and genomics testing.

ProPhase Precision Medicine, Inc., a wholly-owned subsidiary of ProPhase, focuses on genomics testing technologies, a comprehensive method for analyzing entire genomes, including the genes and chromosomes in DNA. The data obtained from genomic testing can help to identify inherited disorders and tendencies, help predict disease risk, help identify expected drug response, and characterize genetic mutations, including those that drive cancer progression. Currently selling Nebula Genomics whole genome sequencing products direct-to-consumer online, with plans to sell in food, drug and mass (FDM) stores and to provide testing for universities conducting genomic research.

ProPhase BioPharma, Inc. (PBIO), a wholly-owned subsidiary of ProPhase, was formed for the licensing, development and commercialization of novel drugs and compounds beginning with Equivir and Equivir G. PBIO announced a second licensing agreement for two small molecule PIM kinase inhibitors, Linebacker LB-1 and LB-2, in July 2022, with plans to pursue development and commercialization of LB-1 as a cancer co-therapy.

ProPhase Labs has decades of experience researching, developing, manufacturing, distributing, marketing, and selling OTC consumer healthcare products and dietary supplements under the TK Supplements^® brand and Phamaloz contract manufacturing subsidiary.

ProPhase Labs actively pursues strategic investments and acquisition opportunities for other companies, technologies, and products.

For more information, visit www.ProPhaseLabs.com.

ProPhase Media Relations and Institutional Investor Contact:

ProPhase Labs, Inc.
267-880-1111
investorrelations@prophaselabs.com

ProPhase Retail Investor Relations Contact:

Renmark Financial Communications
John Boidman
514-939-3989
Jboidman@renmarkfinancial.com

FAQ

What stock option did ProPhase Labs grant to Dennis Grishin?

ProPhase Labs granted Dennis Grishin an inducement stock option to purchase up to 250,000 shares at an exercise price of $13.00.

What is the vesting schedule for the stock options granted to Dennis Grishin?

The stock options vest 50% immediately, with the remaining 50% vesting in equal annual installments over the next two years.

How long can Dennis Grishin exercise his stock options?

The stock options granted to Dennis Grishin are exercisable for a period of 7 years.

Under which Nasdaq rule was the stock option awarded?

The stock option was awarded under the employment inducement award exemption provided by Nasdaq Rule 5635(c)(4).

What is ProPhase Labs' focus area?

ProPhase Labs focuses on diagnostics, genomics, and biotech, providing services like whole genome sequencing.