Stoke Therapeutics Announces Inducement Grants Under Nasdaq Listing Rule 5635(C)(4)

Rhea-AI Summary

Stoke Therapeutics (Nasdaq: STOK) announced the granting of stock options as a material inducement for the employment of their new Chief Financial Officer, Thomas Leggett, and four other new employees. Effective May 15, 2024, Mr. Leggett received options to purchase 396,200 shares at $14.13 per share, while the other four employees received options to purchase a combined total of 65,000 shares at the same price. Each option will vest over four years, with 1/4th vesting on the one-year anniversary and the remainder vesting monthly over the next 36 months, contingent on continued employment. The options have a 10-year term and are governed by the 2023 Inducement Plan and corresponding agreements.

Positive

• Grant of stock options to new CFO and employees may boost morale and incentivize long-term commitment.
• Exercise price set at $14.13 per share, matching the closing price on May 15, 2024.
• Vesting schedule encourages long-term retention and performance.
• Options have a long term of 10 years, providing ample time for potential stock appreciation.

Negative

• Dilution risk for existing shareholders due to the issuance of new stock options.
• Stock options' value is contingent on future stock price performance, which is uncertain.
• Vested options could lead to increased selling pressure in the future.
• High exercise price of $14.13 may not be attractive if stock price falls below this level.

BEDFORD, Mass.--(BUSINESS WIRE)-- Stoke Therapeutics, Inc. (Nasdaq: STOK), a biotechnology company dedicated to addressing the underlying cause of severe diseases by upregulating protein expression with RNA-based medicines, today announced that, effective on May 15, 2024, the company granted stock options of common stock to Thomas Leggett, the Company’s newly-appointed Chief Financial Officer, and four other new employees as a material inducement to their employment in accordance with Nasdaq Listing Rule 5635(c)(4).

The company granted Mr. Leggett stock options to purchase 396,200 shares of common stock. The stock options that were granted have an exercise price of $14.13 per share, which is equal to the closing price of Stoke’s common stock on May 15, 2024. Each option will vest over a 4-year period, with 1/4^th of the shares underlying the employee’s option vesting on the one-year anniversary of the applicable vesting commencement date and the remaining shares thereafter vesting monthly at a rate of 1/48^th of the shares underlying each employee’s option over the following 36 months, subject to the employee’s continued employment with Stoke on such vesting dates. The options have a term of 10 years and are subject to the terms and conditions of the 2023 Inducement Plan and the stock option agreement covering the grant.

In addition, the company granted stock options to purchase an aggregate of 65,000 shares of common stock to four new employees. The stock options that were granted have an exercise price of $14.13 per share, which is equal to the closing price of Stoke’s common stock on May 15, 2024. Each option will vest over a 4-year period, with 1/4^th of the shares underlying the employee’s option vesting on the one-year anniversary of the applicable vesting commencement date and the remaining shares thereafter vesting monthly at a rate of 1/48^th of the shares underlying each employee’s option over the following 36 months, subject to the employee’s continued employment with Stoke on such vesting dates. The options have a term of 10 years and are subject to the terms and conditions of the 2023 Inducement Plan and the stock option agreement covering the grant.

About Stoke Therapeutics

Stoke Therapeutics (Nasdaq: STOK), is a biotechnology company dedicated to addressing the underlying cause of severe diseases by upregulating protein expression with RNA-based medicines. Using Stoke’s proprietary TANGO (Targeted Augmentation of Nuclear Gene Output) approach, Stoke is developing antisense oligonucleotides (ASOs) to selectively restore protein levels. Stoke’s first compound, STK-001, is in clinical testing for the treatment of Dravet syndrome, a severe and progressive genetic epilepsy. Dravet syndrome is one of many diseases caused by a haploinsufficiency, in which a loss of ~50% of normal protein levels leads to disease. Stoke is pursuing the development of STK-002 for the treatment of autosomal dominant optic atrophy (ADOA), the most common inherited optic nerve disorder. Stoke’s initial focus is haploinsufficiencies and diseases of the central nervous system and the eye, although proof of concept has been demonstrated in other organs, tissues, and systems, supporting its belief in the broad potential for its proprietary approach. Stoke is headquartered in Bedford, Massachusetts with offices in Cambridge, Massachusetts. For more information, visit https://www.stoketherapeutics.com/.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240517921058/en/

Stoke Media & Investor Contacts:

Dawn Kalmar

Chief Communications Officer

dkalmar@stoketherapeutics.com

781-303-8302

Eric Rojas

Vice President, Investor Relations

IR@stoketherapeutics.com

617-312-2754

Source: Stoke Therapeutics, Inc.

FAQ

What stock options were granted by Stoke Therapeutics on May 15, 2024?

Stoke Therapeutics granted stock options to purchase 396,200 shares to their new CFO, Thomas Leggett, and 65,000 shares to four other employees.

What is the exercise price for the stock options granted by Stoke Therapeutics?

The exercise price for the stock options is $14.13 per share, equal to the closing price on May 15, 2024.

What is the vesting schedule for the new stock options granted by Stoke Therapeutics?

The options vest over four years, with 1/4th vesting on the one-year anniversary and the rest vesting monthly over the next 36 months.

What is the term of the stock options granted by Stoke Therapeutics?

The stock options have a term of 10 years.

How many shares were granted to Stoke Therapeutics' new CFO?

The new CFO, Thomas Leggett, was granted stock options to purchase 396,200 shares.