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

Rhea-AI Summary

Scholar Rock (NASDAQ: SRRK), a late-stage biopharmaceutical company, announced the grant of inducement equity awards to five new employees under Nasdaq Listing Rule 5635(c)(4). These awards consist of 96,700 shares of common stock, including 55,258 inducement stock options and 41,442 restricted stock units. The exercise price for the stock options is set at $9.63 per share, equal to the closing price on June 10, 2024. The stock options will vest 25% after one year and the remaining 75% in 12 quarterly installments. Restricted stock units will vest annually in four equal installments. All awards are part of the 2022 Inducement Equity Plan, designed to attract new talent.

Positive

• Inducement equity awards granted to attract new talent.
• Total of 96,700 shares of common stock awarded to new employees.
• Inducement stock options priced at $9.63 per share, equal to the closing price on June 10, 2024.

Negative

• Inducement equity awards can lead to shareholder dilution.
• Awards are contingent on employees' continued service, introducing future uncertainties.

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 covering an aggregate of 96,700 shares of its common stock to 5 newly hired employees, consisting of inducement stock options to purchase an aggregate of 55,258 shares of common stock and inducement restricted stock units, covering an aggregate of 41,442 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 have an exercise price of $9.63, which is equal to the closing price of Scholar Rock’s common stock on June 10, 2024. 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 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/20240618042409/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 is the exercise price of Scholar Rock's inducement stock options announced on June 10, 2024?

The exercise price of the inducement stock options is $9.63 per share.

How many shares are covered under Scholar Rock's inducement equity awards announced?

The inducement equity awards cover an aggregate of 96,700 shares of common stock.

What is the vesting schedule for Scholar Rock's inducement stock options?

The inducement stock options will vest 25% on the first anniversary of the employee's start date, and the remaining 75% will vest in 12 equal quarterly installments thereafter.

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

The Inducement Equity Plan is used to grant equity awards to new employees as an inducement to join Scholar Rock.

How will Scholar Rock's restricted stock units vest?

The restricted stock units will vest in four equal annual installments.