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

Rhea-AI Summary

Sierra Oncology, Inc. (SRRA) announced the grant of stock options to a new employee, amounting to 50,000 shares with an exercise price of $16.73 per share, equating to the current stock price. This initiative falls under Sierra's 2018 Equity Inducement Plan, aimed at attracting new talent. The options will vest over four years, contingent on the employee's continued employment. This move underscores Sierra's objective to enhance its workforce while navigating the challenges of clinical development and capital resource management.

Positive

• Grant of 50,000 stock options to attract new talent.
• Exercise price aligns with current market value at $16.73.

Negative

• Risk of insufficient cash resources to fund operating plans.
• Potential delays in the development and commercialization of momelotinib.
• Impact of COVID-19 could disrupt operations.
• Uncertainty around acquiring additional product candidates.

SAN MATEO, Calif., March 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 50,000 shares of Sierra's common stock. The option has an exercise price of $16.73 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 to advance targeted therapies with assets on the leading edge of cancer biology. 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 recent stock option grant did Sierra Oncology announce?

Sierra Oncology granted stock options to a new employee for 50,000 shares at an exercise price of $16.73 per share.

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

The stock options will vest 25% after one year and the remaining 75% in monthly installments over the next three years.

What are the risks mentioned in Sierra Oncology's press release?

Key risks include insufficient cash resources, potential delays in clinical development, and COVID-19 impacts.

What is the significance of the 2018 Equity Inducement Plan for Sierra Oncology?

The 2018 plan is designed to offer equity awards to attract new employees, which is crucial for the company's growth.