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

Rhea-AI Summary

Sierra Oncology, Inc. (SRRA) announced the grant of a stock option to a new employee under its 2018 Equity Inducement Plan. The option allows the purchase of 50,000 shares at an exercise price of $14.67 per share, matching the stock's closing price on the grant date. The vesting schedule includes 25% vesting on the first anniversary and the remaining 75% over 36 months, contingent on continued employment. This grant aims to incentivize new talent as Sierra focuses on developing targeted therapies for rare cancers.

Positive

• Grant of stock option to a new employee may enhance talent acquisition.
• Equity awards could motivate employee performance.

Negative

• Company faces risks such as insufficient cash resources and potential delays in clinical development.

SAN MATEO, Calif., Feb. 9, 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 $14.67 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 stock option was granted by Sierra Oncology (SRRA) on February 9, 2021?

Sierra Oncology granted a stock option to a new employee for 50,000 shares at an exercise price of $14.67.

What is the vesting schedule for the stock option granted by Sierra Oncology (SRRA)?

The option vests 25% on the first anniversary and the remaining 75% in 36 equal monthly installments.

What does the 2018 Equity Inducement Plan involve for Sierra Oncology (SRRA)?

It allows for equity awards as incentives for new employees entering employment with Sierra Oncology.

What are the potential risks mentioned by Sierra Oncology (SRRA) in their press release?

Risks include insufficient cash resources, COVID-19 impacts, and delays in clinical development.