Savara Announces New Employment Inducement Grant Under NASDAQ Listing Rule 5635(c)(4)

Rhea-AI Summary

Savara Inc. (NASDAQ: SVRA), a biopharmaceutical company focusing on rare respiratory diseases, announced the grant of inducement awards to two new employees on August 16, 2021. These awards comprise options for 200,000 shares and restricted stock units (RSUs) for 100,000 shares, granted under the 2021 Inducement Equity Incentive Plan. The options have an exercise price of $1.19 per share and a 10-year term, with quarterly vesting. RSUs will vest fully after two years, contingent on continued employment.

Positive

• Inducement awards could enhance employee retention and incentivize new talent.
• Options priced at $1.19, reflecting the market value at grant date, are attractive.

Negative

• Equity awards may dilute existing shareholders' ownership.
• Large equity grants can raise concerns about potential overhang in the stock.

Savara Inc. (NASDAQ: SVRA), a clinical stage biopharmaceutical company focused on rare respiratory diseases, today announced the grant of inducement awards to two new employees.

On August 16, 2021, the Compensation Committee of Savara's Board of Directors granted inducement awards to two new employees who recently joined the Company. The inducement awards consist of options to purchase an aggregate of 200,000 shares of the Company's common stock and restricted stock units (RSUs) covering an aggregate of 100,000 shares of the Company’s common stock. These equity awards were granted under the Savara Inc. 2021 Inducement Equity Incentive Plan pursuant to Rule 5635(c)(4) of the NASDAQ Listing Rules as an inducement material to the employee’s acceptance of employment with the Company.

The options have an exercise price of $1.19 per share, the closing trading price of the Company's common stock on the NASDAQ Global Market on the grant date. Each option has a 10-year term and vests as to 1/16^th of the number of shares subject to the option on each quarterly anniversary of the employee’s first day of employment, subject to the employee’s continued employment on each such vesting date. Each of the RSUs vest in full on the two-year anniversary of the employee’s first day of employment, subject to the employee’s continued employment on such vesting date.

About Savara

Savara is a clinical stage biopharmaceutical company focused on rare respiratory diseases. Our lead program, molgramostim nebulizer solution, is an inhaled granulocyte-macrophage colony-stimulating factor (GM-CSF) in Phase 3 development for autoimmune pulmonary alveolar proteinosis (aPAP). Molgramostim is delivered via an investigational eFlow^® Nebulizer System (PARI Pharma GmbH). Our management team has significant experience in rare respiratory diseases and pulmonary medicine, identifying unmet needs, and effectively advancing product candidates to approval and commercialization. More information can be found at www.savarapharma.com. (Twitter: @SavaraPharma, LinkedIn: www.linkedin.com/company/savara-pharmaceuticals/).

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FAQ

What are the new inducement awards granted by Savara Inc. (SVRA)?

Savara Inc. granted inducement awards consisting of options to purchase 200,000 shares and RSUs for 100,000 shares to two new employees.

What is the exercise price of the options granted by Savara (SVRA)?

The options have an exercise price of $1.19 per share, which is the closing price on the grant date.

When do the options and RSUs vest for Savara's new employees?

Options vest quarterly over a 10-year period, while RSUs vest in full on the two-year anniversary of employment.

How might the inducement awards affect Savara's stock (SVRA)?

The awards could potentially dilute existing shareholders' ownership due to the issuance of new shares.