SeaSpine Reports Granting of Inducement Awards

Rhea-AI Summary

On August 1, 2021, SeaSpine Holdings Corporation (NASDAQ: SPNE) granted inducement awards to nine non-executive employees under the 2020 Employment Inducement Equity Incentive Award Plan. The awards included options for 43,750 shares and restricted stock units for 3,200 shares, with an exercise price of $19.59 per share, matching the closing price on July 30, 2021. The options will vest 50% after two years and the remaining 50% in quarterly installments. The restricted stock units will vest in three equal installments over three years. These awards were approved by the independent compensation committee.

Positive

• Inducement awards could enhance employee retention and motivation.
• Options granted could align employee interests with shareholder value.

Negative

• The exercise price of $19.59 may indicate potential dilution of existing shares.
• Inducement awards raise concerns about potential overhang on stock due to vesting schedules.

CARLSBAD, Calif., Aug. 05, 2021 (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 nine non-executive employees.

The awards were made on August 1, 2021 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 43,750 shares of SeaSpine common stock and restricted stock unit awards with respect to an aggregate of 3,200 shares of SeaSpine common stock. The exercise price of the options was $19.59, which was the per-share closing price of SeaSpine’s common stock on the Nasdaq Global Market on July 30, 2021, the last date preceding the date the options were granted on which such a sale was reported, and the options have an 8-year term. The options vest with respect to 50% of the shares subject to the option on the two-year anniversary of the grant date and as to the remaining 50% of the shares subject to the option in eight substantially equal installments on each 3-month anniversary of the grant date thereafter. The restricted stock units vest in three substantially equal installments on each of the first three anniversaries of the grant date. 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, as well as a market leading surgical navigation system, to meet the varying combinations of products and enabling technologies 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 orthobiologic sciences, as well as spinal implants and software 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 are the details of the inducement awards issued by SeaSpine on August 1, 2021?

SeaSpine issued inducement awards consisting of options to purchase 43,750 shares and restricted stock units for 3,200 shares, with an exercise price of $19.59.

How do the inducement awards impact SeaSpine's stock performance?

These awards may impact stock performance by aligning employee incentives with company success, but could also lead to dilution.

Who approved the inducement awards for SeaSpine employees?

The awards were approved by the independent compensation committee of SeaSpine’s board of directors.

What is the vesting schedule for the inducement awards provided by SeaSpine?

Options vest 50% after two years, while restricted stock units vest in three equal installments over three years.