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

Rhea-AI Summary

Terns Pharmaceuticals, a clinical-stage biopharmaceutical firm, announced equity inducement awards for two new employees under its 2022 Employment Inducement Award Plan.

These awards follow Nasdaq Listing Rule 5635(c)(4) and were approved as a material inducement to the employees' acceptance of their positions.

Scott Harris, the new Chief Development Officer, received an option to purchase 475,000 shares of Terns common stock at an exercise price of $6.32 per share, while another non-executive employee was granted an option to purchase 36,000 shares at an exercise price of $6.01 per share.

Both options have a 10-year term and vest over four years.

Positive

• Equity inducement awards could attract and retain top talent.
• Scott Harris, a key executive, received a significant share option, indicating confidence in his potential contributions.
• Options have a long-term vesting period, which may align employee interests with company growth.

Negative

• Equity awards can lead to shareholder dilution.
• Significant use of stock options may indicate reliance on equity compensation instead of cash, potentially signaling cash flow constraints.

FOSTER CITY, Calif., June 03, 2024 (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 equity inducement awards 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 each made as a material inducement to the employee’s acceptance of employment with Terns.

The Company granted to Scott Harris, the Company’s new Chief Development Officer, an option to purchase 475,000 shares of Terns common stock as of May 28, 2024, and to the other non-executive employee an option to purchase 36,000 shares of Terns common stock as of June 1, 2024.

The options have a 10-year term and, for Mr. Harris, an exercise price per share equal to $6.32, which was the closing price of Terns’ common stock on May 28, 2024, the date of grant. For the non-executive employee, the options have an exercise price per share equal to $6.01, which was the closing price of Terns’ common stock on May 31, 2024, the last trading day prior to the date of grant. For the non-executive employee, the options have a vesting start date of May 1, 2024. The options vest over four years, with 25% of the shares vesting on the first anniversary of the vesting start date and 1/36th of the remaining shares vesting monthly thereafter, subject to 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 includes 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
Justin Ng
investors@ternspharma.com

Media
Jenna Urban
Berry & Company Public Relations
media@ternspharma.com

FAQ

What is the purpose of Terns Pharmaceuticals' equity inducement awards?

The equity inducement awards were granted to attract and retain new employees, as per Nasdaq Listing Rule 5635(c)(4).

Who received the equity inducement awards at Terns Pharmaceuticals?

Scott Harris, the new Chief Development Officer, and another non-executive employee received the equity inducement awards.

How many shares were awarded to Scott Harris by Terns Pharmaceuticals?

Scott Harris received an option to purchase 475,000 shares of Terns common stock.

What was the exercise price for Scott Harris's stock options at Terns Pharmaceuticals?

The exercise price for Scott Harris's stock options was $6.32 per share.

What is the vesting period for Terns Pharmaceuticals' equity inducement awards?

The options vest over four years with 25% vesting on the first anniversary of the vesting start date and the remaining shares vesting monthly thereafter.

What is the ticker symbol for Terns Pharmaceuticals?

The ticker symbol for Terns Pharmaceuticals is TERN.