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

Rhea-AI Summary

Avidity Biosciences, Inc. (Nasdaq: RNA), a biopharmaceutical company developing Antibody Oligonucleotide Conjugates (AOCs™), has granted equity awards to 34 new non-executive employees under its 2022 Employment Inducement Incentive Award Plan. The grants include:

• 421,600 non-qualified stock options to purchase common stock
• 210,800 restricted stock units (RSUs)

These awards are intended as employment inducements in compliance with Nasdaq Listing Rule 5635(c)(4). The stock options have an exercise price of $50.45 per share, equal to the closing price of Avidity's common stock on October 18, 2024. The options will vest over four years, with 25% vesting after one year and the remainder vesting monthly over 36 months. RSUs will vest in four equal annual installments. All awards are subject to continued employment with Avidity.

Positive

• Avidity Biosciences is attracting new talent with 34 new non-executive employees
• The company is offering competitive equity incentives to new hires, potentially aligning their interests with shareholders

Negative

• The equity grants may lead to dilution of existing shareholders' stakes

SAN DIEGO, Oct. 21, 2024 /PRNewswire/ -- Avidity Biosciences, Inc. (Nasdaq: RNA), a biopharmaceutical company committed to delivering a new class of RNA therapeutics called Antibody Oligonucleotide Conjugates (AOCs™), today announced that on October 20, 2024, the Human Capital Management Committee of Avidity's Board of Directors granted non-qualified stock option awards to purchase an aggregate of 421,600 shares of its common stock and 210,800 restricted stock units ("RSUs") to thirty-four (34) new non-executive employees under the Avidity Biosciences, Inc. 2022 Employment Inducement Incentive Award Plan (the "2022 Inducement Plan"). The awards were granted as inducements material to the employees entering into employment with Avidity in accordance with Nasdaq Listing Rule 5635(c)(4).

The 2022 Inducement Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of Avidity, or following a bona fide period of non-employment, as an inducement material to such individuals' entering into employment with Avidity, pursuant to Nasdaq Listing Rule 5635(c)(4).

The options have an exercise price of $50.45 per share, which is equal to the closing price of Avidity's common stock on The Nasdaq Global Market on October 18, 2024. The shares subject to the stock options will vest over four years, with 25% of the shares vesting on the one-year anniversary of the applicable vesting commencement date and the balance of the shares vesting in a series of 36 successive equal monthly installments thereafter, subject to each employee's continued employment with Avidity on such vesting dates. The RSUs will vest in four equal installments on the first four anniversaries of the applicable vesting commencement date, subject to each employee's continued employment with Avidity on such vesting dates. The awards are subject to the terms and conditions of the 2022 Inducement Plan and the terms and conditions of a stock option agreement or RSU agreement, as applicable, covering the grant.

About Avidity

Avidity Biosciences, Inc.'s mission is to profoundly improve people's lives by delivering a new class of RNA therapeutics - Antibody Oligonucleotide Conjugates (AOCs™). Avidity is revolutionizing the field of RNA with its proprietary AOCs, which are designed to combine the specificity of monoclonal antibodies with the precision of oligonucleotide therapies to address targets and diseases previously unreachable with existing RNA therapies. Utilizing its proprietary AOC platform, Avidity demonstrated the first-ever successful targeted delivery of RNA into muscle and is leading the field with clinical development programs for three rare muscle diseases: myotonic dystrophy type 1 (DM1), Duchenne muscular dystrophy (DMD) and facioscapulohumeral muscular dystrophy (FSHD). Avidity is broadening the reach of AOCs with its advancing and expanding pipeline including programs in cardiology and immunology through internal discovery efforts and key partnerships. Avidity is headquartered in San Diego, CA. For more information about our AOC platform, clinical development pipeline and people, please visit www.aviditybiosciences.com and engage with us on LinkedIn and X.

Investor Contact:
Mike MacLean
(619) 837-5014
investors@aviditybio.com

Media Contact:
Navjot Rai
(619) 837-5016
media@aviditybio.com

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SOURCE Avidity Biosciences, Inc.

FAQ

What type of equity awards did Avidity Biosciences (RNA) grant to new employees?

Avidity Biosciences (RNA) granted 421,600 non-qualified stock options and 210,800 restricted stock units (RSUs) to 34 new non-executive employees on October 20, 2024.

What is the exercise price of the stock options granted by Avidity Biosciences (RNA)?

The stock options granted by Avidity Biosciences (RNA) have an exercise price of $50.45 per share, equal to the closing price of Avidity's common stock on The Nasdaq Global Market on October 18, 2024.

How do the stock options and RSUs vest for new employees at Avidity Biosciences (RNA)?

The stock options vest over four years, with 25% vesting after one year and the remainder monthly over 36 months. The RSUs vest in four equal installments on the first four anniversaries of the vesting commencement date.

What is the purpose of Avidity Biosciences' (RNA) 2022 Inducement Plan?

The 2022 Inducement Plan is used exclusively for granting equity awards to individuals who were not previously Avidity employees, as an inducement for them to join the company, in accordance with Nasdaq Listing Rule 5635(c)(4).