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

Rhea-AI Summary

Sarepta Therapeutics (NASDAQ:SRPT) announced on February 28, 2022, that it granted equity awards to 14 newly hired individuals as part of its 2014 Employment Commencement Incentive Plan. This grant involved options for 13,625 shares and 6,950 restricted stock units (RSUs). The options have an exercise price of $76.61 per share, equating to the closing price on the Grant Date. Vesting for options occurs over four years, while RSUs vest yearly over the same period, contingent upon continued employment.

Positive

• Grant of options and RSUs incentivizes new talent.
• Strategic hiring aligned with growth plans.

Negative

• Options exercise price may be high relative to future stock performance.
• Equity awards could dilute existing shareholder value over time.

CAMBRIDGE, Mass., Feb. 28, 2022 (GLOBE NEWSWIRE) -- Sarepta Therapeutics, Inc. (NASDAQ:SRPT), the leader in precision genetic medicine for rare diseases, granted equity awards on February 28, 2022 that were previously approved by the Compensation Committee of its Board of Directors under Sarepta’s 2014 Employment Commencement Incentive Plan, as a material inducement to employment to 14 individuals hired by Sarepta in January 2022. The equity awards were approved in accordance with Nasdaq Listing Rule 5635(c)(4).

The employees received, in the aggregate, options to purchase 13,625 shares of Sarepta's common stock, and in the aggregate 6,950 restricted stock units (“RSUs”). The options have an exercise price of $76.61 per share, which is equal to the closing price of Sarepta's common stock on February 28, 2022 (the “Grant Date”). One-fourth of the shares underlying each employee’s option will vest on the one-year anniversary of the Grant Date and thereafter 1/48th of the shares underlying each employee’s option will vest monthly, such that the shares underlying the option granted to each employee will be fully vested on the fourth anniversary of the Grant Date, in each case, subject to each such employee’s continued employment with Sarepta on such vesting dates.

One-fourth of the RSUs will vest yearly on each anniversary of the Grant Date, such that the RSUs granted to each employee will be fully vested on the fourth anniversary of the Grant Date, in each case, subject to each such employee’s continued employment with Sarepta on such vesting date.

About Sarepta Therapeutics
Sarepta is on an urgent mission: engineer precision genetic medicine for rare diseases that devastate lives and cut futures short. We hold leadership positions in Duchenne muscular dystrophy (DMD) and limb-girdle muscular dystrophies (LGMDs), and we currently have more than 40 programs in various stages of development. Our vast pipeline is driven by our multi-platform Precision Genetic Medicine Engine in gene therapy, RNA and gene editing. For more information, please visit www.sarepta.com or follow us on Twitter, LinkedIn, Instagram and Facebook.

Internet Posting of Information
We routinely post information that may be important to investors in the 'For Investors' section of our website at www.sarepta.com. We encourage investors and potential investors to consult our website regularly for important information about us.

Source: Sarepta Therapeutics, Inc.

Investor Contact:
Ian Estepan, 617-274-4052
iestepan@sarepta.com

Media Contact:
Tracy Sorrentino, 617-301-8566
tsorrentino@sarepta.com

FAQ

What equity awards were granted by Sarepta Therapeutics on February 28, 2022?

Sarepta granted options for 13,625 shares and 6,950 restricted stock units (RSUs) as part of its employment incentive program.

What is the exercise price of the options granted by Sarepta?

The exercise price for the options is $76.61 per share, equal to the closing price on the Grant Date.

When do the equity awards for Sarepta's employees vest?

Options vest over four years, with one-fourth vesting on the first anniversary, and RSUs vest yearly on each anniversary.

How does the grant of equity awards affect Sarepta's stock?

While equity awards can attract talent, they may also lead to shareholder dilution.

Why were the equity awards granted to new hires at Sarepta?

The awards were granted as a material inducement to employment, aligning with the company's growth and talent acquisition strategy.