Replimune Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Replimune Group, Inc. (NASDAQ: REPL), a clinical stage biotechnology company, has announced the grant of inducement equity awards to 9 newly hired non-executive employees. The awards include:

- Non-qualified stock options to purchase 8,870 shares of common stock
- Restricted stock units representing 17,745 shares of common stock

The stock options have an exercise price of $11.33 per share, equal to the closing price on October 7, 2024. They have a 10-year term and will vest over four years. The restricted stock units vest in approximately four equal annual installments beginning on November 15, 2025.

These inducement awards were approved by the compensation committee under Nasdaq Listing Rule 5635(c)(4) and will have terms consistent with the Company's 2018 Equity Incentive Plan.

Positive

• Attraction of new talent with equity incentives
• Alignment of employee interests with company performance through stock options and RSUs

Negative

• Potential dilution of existing shareholders' equity

WOBURN, Mass., Oct. 09, 2024 (GLOBE NEWSWIRE) -- Replimune Group, Inc. (NASDAQ: REPL), a clinical stage biotechnology company pioneering the development of novel oncolytic immunotherapies, today announced the grant of inducement equity awards to newly hired non-executive employees.

The Company granted equity awards to 9 employees as a material inducement to commencing their employment with the Company. The inducement awards consist of non-qualified stock options to purchase an aggregate of 8,870 shares of the Company's common stock and restricted stock units representing an aggregate of 17,745 shares of the Company's common stock. Each option has an exercise price of $11.33 per share, which is equal to the closing price of the Company's common stock on October 7, 2024 (the “Date of Grant”). Each option has a 10-year term and will vest over four years, with 25% of the underlying shares vesting on the one-year anniversary of the Date of Grant, and the remainder vesting in monthly installments for three years thereafter. The restricted stock units vest in approximately four equal annual installments beginning on November 15, 2025.

The aforementioned inducement awards were approved by the compensation committee of the Company's board of directors in reliance on the employment inducement exception under Nasdaq Listing Rule 5635(c)(4). While the inducement awards were granted outside of the Company’s 2018 Equity Incentive Plan, the awards will have terms and conditions consistent with those set forth under such plan.

About Replimune 
Replimune Group, Inc., headquartered in Woburn, MA, was founded in 2015 with the mission to transform cancer treatment by pioneering the development of novel oncolytic immunotherapies. Replimune’s proprietary RPx platform is based on a potent HSV-1 backbone intended to maximize immunogenic cell death and the induction of a systemic anti-tumor immune response. The RPx platform is designed to have a unique dual local and systemic activity consisting of direct selective virus-mediated killing of the tumor resulting in the release of tumor derived antigens and altering of the tumor microenvironment to ignite a strong and durable systemic response. The RPx product candidates are expected to be synergistic with most established and experimental cancer treatment modalities, leading to the versatility to be developed alone or combined with a variety of other treatment options. For more information, please visit www.replimune.com.

Investor Inquiries
Chris Brinzey
ICR Westwicke
339.970.2843
chris.brinzey@westwicke.com

Media Inquiries
Arleen Goldenberg
Replimune
917.548.1582
media@replimune.com

FAQ

What types of inducement equity awards did Replimune (REPL) grant to new employees?

Replimune granted non-qualified stock options to purchase 8,870 shares of common stock and restricted stock units representing 17,745 shares of common stock to 9 newly hired non-executive employees.

What is the exercise price of the stock options granted by Replimune (REPL)?

The stock options have an exercise price of $11.33 per share, which is equal to the closing price of Replimune's common stock on October 7, 2024.

How do the vesting schedules work for Replimune's (REPL) inducement equity awards?

The stock options vest over four years, with 25% vesting after one year and the remainder monthly over three years. The restricted stock units vest in approximately four equal annual installments beginning on November 15, 2025.

Under which Nasdaq rule were Replimune's (REPL) inducement awards approved?

The inducement awards were approved under Nasdaq Listing Rule 5635(c)(4), which allows for employment inducement grants outside of a company's equity incentive plan.