SeaSpine Reports Granting of Inducement Awards

Rhea-AI Summary

SeaSpine Holdings (NASDAQ: SPNE) announced on August 7, 2020, the issuance of inducement awards to eleven non-executive employees. These awards comprise options to purchase 22,753 shares and restricted stock units for 17,832 shares of common stock. The options have an exercise price of $14.82, equivalent to the closing stock price on the grant date, and a term of eight years. Vesting for options occurs in installments beginning after one year, while restricted stock units vest over three years. This initiative aims to attract new talent in compliance with Nasdaq Marketplace Rule 5635(c)(4).

Positive

• Inducement awards may enhance employee retention and attract talent.
• Options granted at market price mitigate immediate financial impact.

Negative

• The issuance of stock options can lead to potential dilution of shares.
• Vesting terms may not incentivize immediate performance improvements.

CARLSBAD, Calif., Aug. 07, 2020 (GLOBE NEWSWIRE) -- SeaSpine Holdings Corporation (NASDAQ: SPNE), a global medical technology company focused on surgical solutions for the treatment of spinal disorders, today announced that it has issued inducement awards to eleven non-executive employees.

The awards were made on August 7, 2020 under SeaSpine’s 2020 Employment Inducement Equity Incentive Award Plan, which provides for the granting of equity awards to new employees of SeaSpine. The inducement awards consist of options to purchase 22,753 shares of SeaSpine common stock and restricted stock unit awards with respect to an aggregate of 17,832 shares of SeaSpine common stock. The exercise price of the options was $14.82, which was the per-share closing price of SeaSpine’s common stock on the Nasdaq Global Market on August 7, 2020, the date the options were granted, and the options have an 8-year term. The options vest with respect to 25% of the shares subject to the option on the first anniversary of the grant date and as to the remaining 75% of the shares subject to the option in 12 substantially equal installments on each 3-month anniversary of the grant date thereafter. Restricted stock units with respect to 12,632 shares vest in three substantially equal installments on each of the first three anniversaries of the grant date and, with respect to the remaining 5,200 shares, vest in full on December 31, 2020. The awards were approved by the independent compensation committee of SeaSpine’s board of directors and were granted as an inducement material to the new employees entering into employment with SeaSpine in accordance with Nasdaq Marketplace Rule 5635(c)(4).

About SeaSpine
SeaSpine (www.seaspine.com) is a global medical technology company focused on the design, development and commercialization of surgical solutions for the treatment of patients suffering from spinal disorders. SeaSpine has a comprehensive portfolio of orthobiologics and spinal implants solutions to meet the varying combinations of products that neurosurgeons and orthopedic spine surgeons need to perform fusion procedures on the lumbar, thoracic and cervical spine. SeaSpine’s orthobiologics products consist of a broad range of advanced and traditional bone graft substitutes that are designed to improve bone fusion rates following a wide range of orthopedic surgeries, including spine, hip, and extremities procedures. SeaSpine’s spinal implants portfolio consists of an extensive line of products to facilitate spinal fusion in degenerative, minimally invasive surgery (MIS), and complex spinal deformity procedures. Expertise in both orthobiologic sciences and spinal implants product development allows SeaSpine to offer its surgeon customers a differentiated portfolio and a complete solution to meet their fusion requirements. SeaSpine currently markets its products in the United States and in approximately 30 countries worldwide through a committed network of increasingly exclusive distribution partners.

Investor Relations Contact
Leigh Salvo
(415) 937-5402
ir@seaspine.com

 

FAQ

What is the purpose of SeaSpine's inducement awards announced on August 7, 2020?

The inducement awards aim to attract and retain new employees by providing equity incentives.

How many shares were included in the inducement awards for SeaSpine employees?

The awards include options for 22,753 shares and restricted stock units for 17,832 shares.

What was the exercise price for the options granted to SeaSpine employees?

The exercise price of the options was $14.82, which matched the closing price on the grant date.

What are the vesting terms for the options issued by SeaSpine?

The options vest 25% on the first anniversary and the remaining 75% in equal installments every three months thereafter.

What compliance rule did SeaSpine follow for issuing the inducement awards?

The awards were granted in accordance with Nasdaq Marketplace Rule 5635(c)(4).