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

Rhea-AI Summary

Summit Therapeutics (NASDAQ: SMMT) announced inducement grants of options to purchase 200,000 shares of common stock as per Nasdaq Listing Rule 5635(c)(4).

The grants, made to a new employee, were approved by the Compensation Committee. These options, with a 10-year term, have an exercise price of $3.380 per share, matching the closing price on May 24, 2024.

Half of the options will vest annually over four years, while the other half depends on performance conditions related to market capitalization and revenue targets.

An agreement will formalize the terms of these options.

Positive

• Grant of 200,000 stock options can attract and retain skilled employees.
• Options have a 10-year term, providing long-term incentives.
• Exercise price set at $3.380, aligning with the current market price.
• Half of the options vest based on performance, potentially driving company growth.

Negative

• Potential dilution of existing shareholder value due to new stock options.
• Vesting over four years delays full benefit realization for the new employee.
• Performance-based vesting may not be met, affecting employee incentives.

MIAMI--(BUSINESS WIRE)-- Summit Therapeutics Inc. (NASDAQ: SMMT) ("Summit," "we," or the "Company") today announced the grant of inducement awards of options to purchase a collective total of up to 200,000 shares of common stock. An award was made to one new employee of the Company. The award was granted as an inducement material to the new employee becoming an employee of the Company in accordance with Nasdaq Listing Rule 5635(c)(4) and has been approved by the Company’s Compensation Committee. The inducement award was granted on May 24, 2024. The options have a ten (10) year term and an exercise price of $3.380 per share, the closing price per share of the Company’s common stock as reported by Nasdaq on May 24, 2024. The options were granted from a pool of equity incentives reserved by the Compensation Committee on May 3, 2024 for issuance as inducements to new employees in accordance with Nasdaq Listing Rule 5635(c)(4).

Half of the options awarded to the recipient are subject to vesting in equal annual installments over a four-year period and half of the options awarded are subject to vesting in accordance with the satisfaction of performance conditions based on market capitalization and revenue targets. The options awarded are subject to the terms of a stock option agreement to be executed by the recipient of the grant.

About Summit Therapeutics

Summit Therapeutics Inc. is a biopharmaceutical oncology company focused on the discovery, development, and commercialization of patient-, physician-, caregiver- and societal-friendly medicinal therapies intended to improve quality of life, increase potential duration of life, and resolve serious unmet medical needs.

Summit was founded in 2003 and our shares are listed on the Nasdaq Global Market (symbol "SMMT"). We are headquartered in Miami, Florida, and we have additional offices in Menlo Park, California, and Oxford, UK.

For more information, please visit https://www.smmttx.com and follow us on X @summitplc.

Summit Forward-looking Statements

Any statements in this press release about the Company’s future expectations, plans and prospects, including but not limited to, statements about the clinical and preclinical development of the Company’s product candidates, entry into and actions related to the Company’s partnership with Akeso Inc., the Company's anticipated spending and cash runway, the therapeutic potential of the Company’s product candidates, the potential commercialization of the Company’s product candidates, the timing of initiation, completion and availability of data from clinical trials, the potential submission of applications for marketing approvals, potential acquisitions, statements about the previously disclosed At-The-Market equity offering program (“ATM Program”), the expected use proceeds and uses thereof, and other statements containing the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "would," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the Company’s ability to sell shares of our common stock under the ATM Program, the conditions affecting the capital markets, general economic, industry, or political conditions, including the results of our evaluation of the underlying data in connection with the development and commercialization activities for ivonescimab, the outcome of discussions with regulatory authorities, including the Food and Drug Administration, the uncertainties inherent in the initiation of future clinical trials, availability and timing of data from ongoing and future clinical trials, the results of such trials, and their success, and global public health crises, that may affect timing and status of our clinical trials and operations, whether preliminary results from a clinical trial will be predictive of the final results of that trial or whether results of early clinical trials or preclinical studies will be indicative of the results of later clinical trials, whether business development opportunities to expand the Company’s pipeline of drug candidates, including without limitation, through potential acquisitions of, and/or collaborations with, other entities occur, expectations for regulatory approvals, laws and regulations affecting government contracts and funding awards, availability of funding sufficient for the Company’s foreseeable and unforeseeable operating expenses and capital expenditure requirements and other factors discussed in the "Risk Factors" section of filings that the Company makes with the Securities and Exchange Commission. Any change to our ongoing trials could cause delays, affect our future expenses, and add uncertainty to our commercialization efforts, as well as to affect the likelihood of the successful completion of clinical development of ivonescimab. Accordingly, readers should not place undue reliance on forward-looking statements or information. In addition, any forward-looking statements included in this press release represent the Company’s views only as of the date of this release and should not be relied upon as representing the Company’s views as of any subsequent date. The Company specifically disclaims any obligation to update any forward-looking statements included in this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240530012985/en/

Contact Summit Investor Relations:

Dave Gancarz

Chief Business & Strategy Officer

Nathan LiaBraaten

Senior Director, Investor Relations

investors@smmttx.com

Source: Summit Therapeutics Inc.

FAQ

What did Summit Therapeutics announce regarding stock options?

Summit Therapeutics announced inducement grants of options to purchase 200,000 shares of common stock to a new employee.

When were the inducement stock options granted by Summit Therapeutics?

The inducement stock options were granted on May 24, 2024.

What is the exercise price for Summit Therapeutics' new stock options?

The exercise price for the new stock options is $3.380 per share.

Over what period do the new stock options granted by Summit Therapeutics vest?

Half of the options vest in equal annual installments over a four-year period, while the other half vest based on performance conditions.

How many shares were included in Summit Therapeutics' inducement stock options grant?

Summit Therapeutics granted inducement stock options for a total of 200,000 shares.