Sierra Oncology Announces Inducement Grant Under NASDAQ Listing Rule 5635(c)(4)

Rhea-AI Summary

Sierra Oncology (SRRA) announced the granting of a stock option to a new employee under its 2018 Equity Inducement Plan. The stock option includes 33,000 shares at an exercise price of $18.70, equal to the stock's closing price on the grant date. The option will vest 25% after one year, with the remainder vesting in monthly installments over three years, contingent upon continued employment. This plan complies with NASDAQ Listing Rule 5635(c)(4) and is part of Sierra's strategy to attract talent to support its focus on rare cancer treatments.

Positive

• Stock option grant to a new employee may enhance talent acquisition.
• The exercise price of $18.70 matches current market value, indicating no immediate financial burden.

Negative

• Potential risk if the company's cash resources are insufficient for operational plans.
• Uncertainties regarding the development and commercialization of key therapies like momelotinib.

SAN MATEO, CA, June 23, 2021 /PRNewswire/ - Sierra Oncology, Inc. (SRRA), a late-stage biopharmaceutical company on a quest to deliver targeted therapies that treat rare forms of cancer, granted a stock option to a new employee as approved by the Compensation Committee of the Company's Board of Directors, under Sierra Oncology's 2018 Equity Inducement Plan.

The 2018 Equity Inducement Plan is used exclusively for the grant of equity awards to individuals as an inducement material to such individuals entering into employment with Sierra, pursuant to Rule 5635(c)(4) of the NASDAQ Listing Rules.

The employee received an option to purchase 33,000 shares of Sierra's common stock. The option has an exercise price of $18.70 per share, which is equal to the closing price of Sierra's common stock on the date of grant. The option will vest and become exercisable as to 25% of the shares on the first anniversary of the recipient's start date, and then will vest and become exercisable as to the remaining 75% of shares in 36 equal monthly installments following the first anniversary, subject to the employee's continued employment with Sierra on such vesting dates. The option is subject to the terms and conditions of Sierra's 2018 Equity Inducement Plan, and the terms and conditions of the stock option agreement covering the grant.

About Sierra Oncology
Sierra Oncology is a late-stage biopharmaceutical company on a quest to deliver targeted therapies that treat rare forms of cancer. We harness our deep scientific expertise to identify compounds that target the root cause of disease. Our team takes an evidence-based approach to understand the limitations of current treatments and explore new ways to change the cancer treatment paradigm. Together we are transforming promise into patient impact.

For more information, visit www.SierraOncology.com.

Cautionary Note on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding Sierra Oncology's expectations regarding the commercialization and future success of momelotinib and future expansion of its pipeline. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, including, among others, the risk that Sierra Oncology's cash resources may be insufficient to fund its current operating plans and it may be unable to raise additional capital when needed, the risk that disruptions and impacts of COVID-19 will be significant and lengthy, Sierra Oncology may be unable to successfully develop and commercialize momelotinib, momelotinib may not demonstrate safety and efficacy or otherwise produce positive results, Sierra Oncology may experience delays in the clinical development of momelotinib, Sierra Oncology may be unable to acquire additional assets to build a pipeline of additional product candidates, Sierra Oncology's third-party manufacturers may cause its supply of materials to become limited or interrupted or fail to be of satisfactory quantity or quality, Sierra Oncology may be unable to obtain and enforce intellectual property protection for its technologies and momelotinib and the other factors described under the heading "Risk Factors" set forth in Sierra Oncology's filings with the Securities and Exchange Commission from time to time. Sierra Oncology undertakes no obligation to update the forward-looking statements contained herein or to reflect events or circumstances occurring after the date hereof, other than as may be required by applicable law.

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SOURCE Sierra Oncology

FAQ

What stock option was granted by Sierra Oncology (SRRA) on June 23, 2021?

Sierra Oncology granted a stock option of 33,000 shares at an exercise price of $18.70.

What is the vesting schedule for the stock option granted to the new employee at Sierra Oncology?

The stock option vests 25% after the first year, with the remaining 75% vesting in 36 monthly installments.

What rules govern the stock option grant at Sierra Oncology (SRRA)?

The grant is made under the 2018 Equity Inducement Plan, compliant with NASDAQ Listing Rule 5635(c)(4).

What are the business implications of the stock option grant for Sierra Oncology (SRRA)?

The grant is aimed at attracting talent, which is crucial for advancing the company's focus on rare cancer treatments.