PTC Therapeutics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

PTC Therapeutics (NASDAQ: PTCT) announced the approval of non-statutory stock options and restricted stock units (RSUs) for nine new employees on June 17, 2024, under the Nasdaq inducement grant exception. The inducement grants include stock options to purchase 1,380 shares at an exercise price of $35.40 per share and 6,260 RSUs. The stock options have a 10-year term and vest over four years, with 25% vesting on the first anniversary of the employee's hire date and 6.25% vesting quarterly thereafter. The RSUs will vest annually over four years, subject to continued employment. These grants aim to attract and retain talent in accordance with Nasdaq Listing Rule 5635(c)(4).

Positive

• None.

Negative

• Potential dilution of existing shareholder value due to the issuance of new shares.
• Stock options and RSUs vesting contingent on continued employment, which may not materialize.
• Inducement grants may not sufficiently guarantee long-term employee retention.

WARREN, N.J., June 21, 2024 /PRNewswire/ -- PTC Therapeutics, Inc. (NASDAQ: PTCT) today announced that on June 17, 2024, the company approved non-statutory stock options to purchase an aggregate of 1,380 shares of its common stock and 6,260 restricted stock units ("RSUs"), each representing the right to receive one share of its common stock upon vesting, to nine new employees. The awards were made pursuant to the Nasdaq inducement grant exception as a component of the new hires' employment compensation.

The inducement grants were approved by PTC's Compensation Committee on June 17, 2024, and are being made as an inducement material to each employee's acceptance of employment with the company in accordance with Nasdaq Listing Rule 5635(c)(4).

All stock option awards have an exercise price of $35.40 per share, the closing price of PTC's common stock on June 17, 2024, the date of the grant. The stock options each have a 10-year term and vest over four years, with 25% of the original number of shares vesting on the first anniversary of the applicable employee's new hire date and 6.25% of the original number of shares vesting at the end of each subsequent three-month period thereafter until fully vested, subject to the employee's continued service with the company through the applicable vesting dates. The RSUs each will vest over four years with 25% of the original number of shares vesting on each annual anniversary of the applicable employee's new hire date until fully vested, subject to the employee's continued service with the company through the applicable vesting dates.

ABOUT PTC THERAPEUTICS, INC.
PTC is a science-driven, global biopharmaceutical company focused on the discovery, development and commercialization of clinically differentiated medicines that provide benefits to patients with rare disorders. PTC's ability to innovate to identify new therapies and to globally commercialize products is the foundation that drives investment in a robust and diversified pipeline of transformative medicines. PTC's mission is to provide access to best-in-class treatments for patients who have little to no treatment options. PTC's strategy is to leverage its strong scientific and clinical expertise and global commercial infrastructure to bring therapies to patients. PTC believes this allows it to maximize value for all its stakeholders. To learn more about PTC, please visit us at www.ptcbio.com and follow us on Instagram, Facebook, Twitter, and LinkedIn. 

For more information please contact:

Jeanine Clemente
+1 (908) 912-9406
jclemente@ptcbio.com

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SOURCE PTC Therapeutics, Inc.

FAQ

What stock options were issued by PTC Therapeutics on June 17, 2024?

PTC Therapeutics issued non-statutory stock options to purchase 1,380 shares at $35.40 per share.

How many RSUs did PTC Therapeutics grant on June 17, 2024?

PTC Therapeutics granted 6,260 restricted stock units (RSUs).

What is the vesting schedule for PTC Therapeutics' newly issued stock options?

The stock options vest over four years, with 25% vesting on the first anniversary of the hire date and 6.25% vesting quarterly thereafter.

What is the exercise price for PTC Therapeutics' stock options granted on June 17, 2024?

The exercise price for the stock options is $35.40 per share.

Under which Nasdaq rule were PTC Therapeutics' inducement grants approved?

The inducement grants were approved under Nasdaq Listing Rule 5635(c)(4).