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 28 newly hired employees on November 30, 2020, as part of its 2014 Employment Commencement Incentive Plan. These awards include options to purchase 35,770 shares and 15,000 restricted stock units (RSUs). The options have an exercise price of $140.86 per share, equivalent to the stock's closing price on the grant date. Both options and RSUs will vest over four years, contingent on continued employment with the company.

Positive

• Grant of equity awards to 28 new employees enhances employee retention and motivation.
• The equity awards align employee interests with shareholder value.

Negative

• Equity awards may dilute existing shareholders' stakes.
• High exercise price of options could limit immediate financial gain for new employees.

CAMBRIDGE, Mass., Nov. 30, 2020 (GLOBE NEWSWIRE) -- Sarepta Therapeutics, Inc. (NASDAQ:SRPT), the leader in precision genetic medicine for rare diseases, granted equity awards on November 30, 2020 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 28 individuals hired by Sarepta in November 2020. The equity awards were approved in accordance with Nasdaq Listing Rule 5635(c)(4).

The employees received, in the aggregate, options to purchase 35,770 shares of Sarepta's common stock, and in the aggregate, 15,000 restricted stock units (“RSUs”). The options have an exercise price of $140.86 per share, which is equal to the closing price of Sarepta's common stock on November 30, 2020 (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
At Sarepta, we are leading a revolution in precision genetic medicine and every day is an opportunity to change the lives of people living with rare disease. The Company has built an impressive position in Duchenne muscular dystrophy (DMD) and in gene therapies for limb-girdle muscular dystrophies (LGMDs), mucopolysaccharidosis type IIIA, Charcot-Marie-Tooth (CMT), and other CNS-related disorders, with more than 40 programs in various stages of development. The Company’s programs and research focus span several therapeutic modalities, including RNA, gene therapy 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.

Sarepta Therapeutics, Inc.
Investors:
Ian Estepan, 617-274-4052
iestepan@sarepta.com

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

 

FAQ

What is the significance of the equity awards granted by Sarepta Therapeutics on November 30, 2020?

The equity awards are part of an incentive plan aimed at attracting and retaining talent, aligning employees' interests with those of shareholders.

How many shares were awarded to new employees at Sarepta?

Sarepta granted options to purchase 35,770 shares and 15,000 restricted stock units to its new employees.

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

The options have an exercise price of $140.86 per share, equal to the stock's closing price on the grant date.

When do the equity awards vest for Sarepta employees?

The options will vest over four years, with one-fourth vesting on the one-year anniversary and the remainder vesting monthly thereafter.

How might equity awards impact Sarepta's stockholders?

Equity awards could dilute existing shareholders' stakes, impacting their ownership percentage.