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

Rhea-AI Summary

Sierra Oncology (SRRA) granted a stock option to a new employee under the 2018 Equity Inducement Plan. The employee received options for 39,000 shares with an exercise price of $17.79, equal to the stock's closing price at grant. The vesting schedule includes 25% vesting on the first anniversary and the remaining 75% over 36 months, contingent on continued employment. This plan adheres to NASDAQ Listing Rule 5635(c)(4), aimed at attracting talent crucial for the company's focus on targeted therapies for rare cancers.

Positive

• Stock option grant of 39,000 shares enhances employee retention and attraction.
• Exercise price of $17.79 aligns with current market value, reflecting fair compensation.

Negative

• Stock options could dilute existing shareholders if exercised.
• No significant business development or clinical progress reported in this PR.

SAN MATEO, Calif., May 21, 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 39,000 shares of Sierra's common stock. The option has an exercise price of $17.79 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 from current data, anticipated clinical development activities, expected timing and success of enrollment of MOMENTUM and potential benefits of momelotinib. 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 is the recent stock option grant by Sierra Oncology (SRRA)?

Sierra Oncology granted a stock option for 39,000 shares at an exercise price of $17.79 per share to a new employee.

What is the vesting schedule for the stock options granted by Sierra Oncology?

The options will vest 25% on the first anniversary and the remaining 75% in 36 equal monthly installments, contingent on continued employment.

What does the 2018 Equity Inducement Plan entail for Sierra Oncology?

The plan is designed to grant equity awards to attract and retain key personnel, in compliance with NASDAQ Listing Rule 5635(c)(4).

How does the stock option grant impact Sierra Oncology's shareholders?

While the grant aims to attract talent, it could lead to shareholder dilution if the options are exercised.