Savara Announces New Employment Inducement Grant

Rhea-AI Summary

Savara has announced inducement awards for a new employee hired on May 14, 2024. The awards include options to purchase 15,000 shares of common stock and 2,500 restricted stock units (RSUs). The options, priced at $4.81 per share, align with the closing trading price on the grant date and have a 10-year term. The options vest quarterly over four years, while the RSUs vest in full after two years. These grants are made under Savara's 2021 Inducement Equity Incentive Plan according to NASDAQ Rule 5635(c)(4).

Positive

• Savara's inducement awards could attract and retain top talent.
• The equity awards align the new employee's interests with shareholders.
• Options priced at $4.81 per share could be an incentive if the stock price rises.

Negative

• Granting 15,000 stock options and 2,500 RSUs may lead to shareholder dilution.
• The financial impact of these awards on Savara's expenses is not detailed.
• The effectiveness of such inducement awards in achieving long-term business goals remains uncertain.

AUSTIN, Texas--(BUSINESS WIRE)-- Savara Inc. (Nasdaq: SVRA), a clinical stage biopharmaceutical company focused on rare respiratory diseases, today announced the grant of inducement awards to a new employee.

On May 14, 2024, the Compensation Committee of Savara's Board of Directors granted the inducement awards to a new employee who recently joined the Company. The inducement awards consist of options to purchase 15,000 shares of the Company’s common stock and restricted stock units (RSUs) covering 2,500 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 $4.81 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. 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. (X, formerly known as Twitter: @SavaraPharma, LinkedIn: www.linkedin.com/company/savara-pharmaceuticals/).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240516493943/en/

Savara Inc. IR & PR

Anne Erickson (anne.erickson@savarapharma.com)

(512) 851-1366

Source: Savara Inc.

FAQ

What did Savara announce on May 14, 2024?

Savara announced the grant of inducement awards to a new employee, including 15,000 stock options and 2,500 restricted stock units (RSUs).

What is the exercise price for the stock options granted by Savara?

The exercise price for the stock options is $4.81 per share.

How long is the term for Savara's granted stock options?

The term for the granted stock options is 10 years.

How do the RSUs granted by Savara vest?

The RSUs vest in full on the two-year anniversary of the employee’s first day of employment.

Under which plan were the inducement awards granted by Savara?

The inducement awards were granted under the Savara 2021 Inducement Equity Incentive Plan.

What is the significance of NASDAQ Rule 5635(c)(4) in Savara's announcement?

The rule allows Savara to grant equity awards as an inducement material to the employee’s acceptance of employment.