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

Rhea-AI Summary

Sarepta Therapeutics (NASDAQ:SRPT) announced the granting of equity awards to four new employees on April 30, 2021, under its 2014 Employment Commencement Incentive Plan. The total awards included options for 8,615 shares and 3,275 restricted stock units (RSUs). The options have an exercise price of $70.84 per share, matching the closing stock price on the grant date. Vesting for options and RSUs is set over four years, contingent on continued employment.

Positive

• Granting of equity awards signals investment in talent acquisition.
• Equity awards align employee interests with shareholder value through stock options and RSUs.

Negative

• Total cost implications of equity awards not disclosed, which could affect future expenses.

CAMBRIDGE, Mass., April 30, 2021 (GLOBE NEWSWIRE) -- Sarepta Therapeutics, Inc. (NASDAQ:SRPT), the leader in precision genetic medicine for rare diseases, granted equity awards on Apr. 30, 2021 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 4 individuals hired by Sarepta in April 2021. The equity awards were approved in accordance with Nasdaq Listing Rule 5635(c)(4).

The employees received, in the aggregate, options to purchase 8,615 shares of Sarepta's common stock, and in the aggregate 3,275 restricted stock units (“RSUs”). The options have an exercise price of $70.84 per share, which is equal to the closing price of Sarepta's common stock on Apr. 30, 2021 (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 did Sarepta grant on April 30, 2021?

Sarepta granted options to purchase 8,615 shares and 3,275 restricted stock units (RSUs) to four new employees.

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

The exercise price for the options is $70.84 per share.

How does the vesting schedule for Sarepta's equity awards work?

Options vest over four years, with one-fourth vesting after one year and then monthly; RSUs vest yearly over four years.

Why did Sarepta grant equity awards under the 2014 Employment Commencement Incentive Plan?

The awards were granted as a material inducement to employment for the new hires.

How does the granting of equity awards impact Sarepta's stock performance?

While the awards align employee performance with company success, the potential costs are not detailed, which may affect investor confidence.