Scholar Rock Reports New Employee Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Scholar Rock (NASDAQ: SRRK) announced the granting of inducement equity awards under Nasdaq Listing Rule 5635(c)(4) to newly hired employees. On July 10, 2024, the company granted awards covering 285,000 shares of common stock, consisting of 162,857 inducement stock options and 122,143 inducement restricted stock units. On July 8, 2024, inducement equity awards covering 48,700 shares of common stock were granted, including 27,829 inducement stock options and 20,871 inducement restricted stock units. The stock options have exercise prices of $8.27 and $7.87, respectively, matching the closing prices on the grant dates. The awards are subject to the Scholar Rock 2022 Inducement Equity Plan. Stock options will vest 25% on the first anniversary of the start date, with the remaining 75% vesting quarterly over three years. Restricted stock units will vest annually over four years, contingent on continued employment.

Positive

• Scholar Rock granted inducement equity awards to new hires, potentially boosting employee retention and attracting top talent.
• The exercise prices of stock options reflect market value, aligning employee incentives with shareholder interests.

Negative

• Issuing new shares could lead to shareholder dilution.
• The vesting schedules imply a long-term commitment, which may delay the realization of benefits from these inducements.

CAMBRIDGE, Mass.--(BUSINESS WIRE)-- Scholar Rock (NASDAQ: SRRK; the “Company”), a late-stage biopharmaceutical company focused on advancing innovative treatments for spinal muscular atrophy, cardiometabolic disorders, and other serious diseases where protein growth factors play a fundamental role, today announced that the company granted inducement equity awards on July 10, 2024, covering an aggregate of 285,000 shares of its common stock to two newly hired employees, consisting of inducement stock options to purchase an aggregate of 162,857 shares of common stock and inducement restricted stock units, covering an aggregate of 122,143 shares of its common stock. The company also announced that it granted inducement equity awards on July 8, 2024, covering an aggregate of 48,700 shares of its common stock to four newly hired employees, consisting of inducement stock options to purchase an aggregate of 27,829 shares of common stock and inducement restricted stock units, covering an aggregate of 20,871 shares of its common stock.

The awards are subject to all terms and conditions and other provisions set forth in the Company’s 2022 Inducement Equity Plan (the “Plan”) and the award agreements thereunder.

The Plan, which was initially adopted by the Company’s board of directors on June 16, 2022, and amended on September 4, 2022, February 3, 2023 and January 25, 2024, is used exclusively for the grant of equity awards to individuals who were not previously employees of Scholar Rock, or following a bona fide period of non-employment, as an inducement material to such individuals entering into employment with Scholar Rock, pursuant to Nasdaq Listing Rule 5635(c)(4).

The inducement stock options issued on July 10, 2024 have an exercise price of $8.27 and the inducement stock options issued on July 8, 2024 have an exercise price of $7.87, which is equal to the closing price of Scholar Rock’s common stock on July 10, 2024 and July 8, 2024, respectively. The inducement stock options will vest with respect to 25% of the shares of common stock underlying the award on the first anniversary of each employee’s start date, and the remaining 75% of the shares of common stock underlying the inducement stock options will vest in 12 equal quarterly installments thereafter. Vesting for the inducement restricted stock units will be in four equal annual installments. All vesting related to inducement awards is subject to the employees’ continuing service at the Company through the applicable vesting date.

About Scholar Rock

Scholar Rock is a biopharmaceutical company that discovers, develops, and delivers life-changing therapies for people with serious diseases that have high unmet need. As a global leader in the biology of the transforming growth factor beta (TGFβ) superfamily of cell proteins and named for the visual resemblance of a scholar rock to protein structures, the clinical-stage company is focused on advancing innovative treatments where protein growth factors are fundamental. Over the past decade, Scholar Rock has created a pipeline with the potential to advance the standard of care for neuromuscular disease, cardiometabolic disorders, cancer, and other conditions where growth factor-targeted drugs can play a transformational role.

Scholar Rock is the only company to show clinical proof-of-concept for a muscle-targeted treatment in spinal muscular atrophy (SMA). This commitment to unlocking fundamentally different therapeutic approaches is powered by broad application of a proprietary platform, which has developed novel monoclonal antibodies to modulate protein growth factors with extraordinary selectivity. By harnessing cutting-edge science in disease spaces that are historically under-addressed through traditional therapies, Scholar Rock works every day to create new possibilities for patients. Learn more about our approach at ScholarRock.com and follow @ScholarRock and on LinkedIn.

Scholar Rock® is a registered trademark of Scholar Rock, Inc.

Availability of Other Information About Scholar Rock

Investors and others should note that we communicate with our investors and the public using our company website www.scholarrock.com, including, but not limited to, company disclosures, investor presentations and FAQs, Securities and Exchange Commission filings, press releases, public conference call transcripts and webcast transcripts, as well as on Twitter and LinkedIn. The information that we post on our website or on Twitter or LinkedIn could be deemed to be material information. As a result, we encourage investors, the media and others interested to review the information that we post there on a regular basis. The contents of our website or social media shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240712322533/en/

Scholar Rock:



Investors

Rushmie Nofsinger

Scholar Rock

rnofsinger@scholarrock.com

ir@scholarrock.com

857-259-5573



Media

Molly MacLeod

Scholar Rock

mmacleod@scholarrock.com

media@scholarrock.com

802-579-5995

Source: Scholar Rock

FAQ

What are the details of Scholar Rock's inducement equity awards announced in July 2024?

On July 10, 2024, Scholar Rock granted awards covering 285,000 shares, including 162,857 stock options and 122,143 restricted stock units. On July 8, 2024, awards covered 48,700 shares, with 27,829 stock options and 20,871 restricted stock units.

What are the exercise prices for Scholar Rock's July 2024 inducement stock options?

The exercise prices for the stock options are $8.27 for July 10, 2024 awards and $7.87 for July 8, 2024 awards, matching the closing prices on the respective dates.

How will the inducement stock options granted by Scholar Rock vest?

The stock options will vest 25% on the first anniversary of the start date, with the remaining 75% vesting in 12 equal quarterly installments.

How will the inducement restricted stock units granted by Scholar Rock vest?

The restricted stock units will vest in four equal annual installments, contingent on continued employment with the company.

What is the purpose of Scholar Rock's 2022 Inducement Equity Plan?

The Plan is used exclusively for granting equity awards to individuals not previously employed by Scholar Rock, as an inducement to enter into employment with the company, per Nasdaq Listing Rule 5635(c)(4).