Terns Pharmaceuticals Reports Inducement Grant to New Employees Under Nasdaq Listing Rule 5635(C)(4)

Rhea-AI Summary

Terns Pharmaceuticals (TERN), a clinical-stage biopharmaceutical company focused on developing small-molecule treatments for oncology and obesity, has announced equity inducement grants to two new employees. The grants, approved under the 2022 Employment Inducement Award Plan and Nasdaq Listing Rule 5635(c)(4), consist of options to purchase 611,000 shares of Terns common stock.

The stock options come with a 10-year term and an exercise price of $2.56 per share, matching Terns' closing stock price on April 1, 2025. These options will vest over a four-year period, contingent on continued employment through the vesting dates.

FOSTER CITY, Calif., April 02, 2025 (GLOBE NEWSWIRE) -- Terns Pharmaceuticals, Inc. (“Terns” or the “Company”) (Nasdaq: TERN), a clinical-stage biopharmaceutical company developing a portfolio of small-molecule product candidates to address serious diseases, including oncology and obesity, today announced that it has granted as of April 1, 2025 an equity inducement award to two new employees under the terms of the 2022 Employment Inducement Award Plan, as amended. The equity awards were approved by the Compensation Committee of the Company’s Board of Directors in accordance with Nasdaq Listing Rule 5635(c)(4) and were made as a material inducement to the employees’ acceptance of employment with Terns.

The Company granted options to purchase 611,000 shares of Terns common stock to the new employees. The options have a 10-year term and an exercise price per share equal to $2.56, which was the closing price of Terns’ common stock on April 1, 2025. The options vest over four years, subject to the employees’ continued service through the applicable vesting dates.

About Terns Pharmaceuticals

Terns Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company developing a portfolio of small-molecule product candidates to address serious diseases, including oncology and obesity. Terns’ pipeline contains three clinical stage development programs including an allosteric BCR-ABL inhibitor, a small-molecule GLP-1 receptor agonist, a THR-β agonist, and a preclinical GIPR modulator discovery effort, prioritizing a GIPR antagonist nomination candidate. For more information, please visit: www.ternspharma.com.

Contacts for Terns

Investors
Kaytee Bock
investors@ternspharma.com

Media
Jenna Urban
CG Life
media@ternspharma.com

FAQ

What is the exercise price for TERN's new employee stock options granted on April 1, 2025?

The exercise price is $2.56 per share, equal to Terns Pharmaceuticals' closing stock price on April 1, 2025.

How many shares of TERN stock were granted in the April 2025 employee inducement awards?

Terns Pharmaceuticals granted options to purchase 611,000 shares of common stock.

What is the vesting period for TERN's April 2025 employee stock options?

The stock options vest over a four-year period, subject to continued employment.

Under which regulatory rule were TERN's April 2025 employee stock options granted?

The options were granted under Nasdaq Listing Rule 5635(c)(4) and the 2022 Employment Inducement Award Plan.