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

Rhea-AI Summary

Soleno Therapeutics (NASDAQ: SLNO), a clinical-stage biopharmaceutical company focused on rare diseases, announced the grant of inducement awards to eight new employees, as required by Nasdaq rules. The Board of Directors approved the issuance of non-qualified stock options for 247,200 shares at an exercise price of $41.15 per share, which matches the closing price on June 21, 2024. These options vest over four years, with 25% vesting after one year and the remaining shares vesting monthly. This grant falls under Soleno's 2020 Inducement Equity Incentive Plan.

Positive

• Approved inducement grants demonstrate efforts to attract skilled employees.
• Stock options vesting over four years could help retain talent.
• Exercise price of $41.15 reflects the current market value.

Negative

• Stock options can lead to shareholder dilution.
• Long vesting period may delay potential benefits for employees.

REDWOOD CITY, Calif., June 24, 2024 (GLOBE NEWSWIRE) -- Soleno Therapeutics, Inc. (“Soleno”) (NASDAQ: SLNO), a clinical-stage biopharmaceutical company developing novel therapeutics for the treatment of rare diseases, today announced, as required by Nasdaq Stock Market rules, the grant of inducement awards to eight new employees.

The independent members of the Board of Directors of Soleno approved the grant of non-qualified stock options to purchase 247,200 shares of common stock to eight employees as an inducement for them entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).

The options have an exercise price of $41.15 per share, which is equal to the closing price of Soleno’s common stock on the Nasdaq Stock Market on June 21, 2024, the date of grant. The option award will vest over a four-year period, with 25% of the shares subject to the award vesting on the one-year anniversary of the date of grant, and thereafter an additional 1/48th of the shares subject to the award vesting on each succeeding monthly anniversary of the date of grant, subject to such employee’s continued employment with Soleno through such vesting dates. The option awards are subject to the terms and conditions of Soleno’s existing 2020 Inducement Equity Incentive Plan and the terms and conditions of the stock option covering the grant.

About Soleno Therapeutics, Inc.
Soleno is focused on the development and commercialization of novel therapeutics for the treatment of rare diseases. The company’s lead candidate, DCCR (diazoxide choline) extended-release tablets, a once-daily oral tablet for the treatment of Prader-Willi syndrome (PWS), recently completed its Phase 3 development program to support a planned NDA submission. For more information, please visit www.soleno.life.

Corporate Contact:
Brian Ritchie
LifeSci Advisors, LLC
212-915-2578

FAQ

What did Soleno Therapeutics announce on June 24, 2024?

Soleno Therapeutics announced the grant of inducement awards to eight new employees.

How many stock options were granted by Soleno Therapeutics?

Soleno Therapeutics granted non-qualified stock options for 247,200 shares.

What is the exercise price for the stock options granted by Soleno Therapeutics?

The exercise price for the stock options is $41.15 per share.

When will the stock options granted by Soleno Therapeutics vest?

The stock options will vest over a four-year period, with 25% vesting after one year and the rest vesting monthly.

Under which plan were the stock options granted by Soleno Therapeutics?

The stock options were granted under Soleno's 2020 Inducement Equity Incentive Plan.