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 disease treatments, has announced inducement grants to six new employees as required by Nasdaq Stock Market rules. The company's independent board members approved non-qualified stock options to purchase 143,850 shares of common stock. These options have exercise prices of $49.52 and $48.44 per share, matching Soleno's closing stock prices on August 13 and 16, 2024, respectively.

The option awards will vest over four years, with 25% vesting after one year and the remainder vesting monthly thereafter, contingent on continued employment. These grants fall under Soleno's 2020 Inducement Equity Incentive Plan and are designed to attract and retain talent in compliance with Nasdaq Listing Rule 5635(c)(4).

Positive

• Soleno is attracting new talent, potentially strengthening its workforce
• The company is utilizing equity incentives to align employee interests with shareholders

Negative

• Potential dilution of existing shareholders due to the issuance of new stock options

REDWOOD CITY, Calif., Aug. 19, 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 six new employees.

The independent members of the Board of Directors of Soleno approved the grant of non-qualified stock options to purchase 143,850 shares of common stock to six 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 $49.52 and $48.44 per share, which is equal to the closing price of Soleno’s common stock on the Nasdaq Stock Market on August 13, 2024 and August 16, 2024, respectively, the dates of the various grants. 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 recently submitted an NDA to the FDA, supported by its Phase 3 development program, for its lead candidate, DCCR (diazoxide choline) extended-release tablets, a once-daily oral tablet for the treatment of Prader-Willi syndrome (PWS). For more information, please visit www.soleno.life.

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

FAQ

How many new employees received inducement grants from Soleno Therapeutics (SLNO)?

Soleno Therapeutics (SLNO) granted inducement awards to six new employees.

What is the total number of shares covered by the stock options granted by Soleno Therapeutics (SLNO)?

The non-qualified stock options granted by Soleno Therapeutics (SLNO) cover the purchase of 143,850 shares of common stock.

What are the exercise prices for the stock options granted by Soleno Therapeutics (SLNO) on August 13 and 16, 2024?

The exercise prices for the stock options granted by Soleno Therapeutics (SLNO) are $49.52 and $48.44 per share, respectively.

What is the vesting schedule for the inducement stock options granted by Soleno Therapeutics (SLNO)?

The stock options vest over a four-year period, with 25% vesting after one year and the remainder vesting monthly thereafter, subject to continued employment.