TransMedics Reports Inducement Grants Under NASDAQ Listing Rule 5635(c)(4)

Rhea-AI Summary

On June 18, 2024, TransMedics granted non-qualified stock options to purchase 1,002 shares of common stock and 657 restricted stock units (RSUs) to a new employee as a material inducement. These grants, approved by the Compensation Committee under Nasdaq Listing Rule 5635(c)(4), are part of the TransMedics Inducement Plan. The stock options have an exercise price of $145.96 per share and a 10-year term. Vesting is structured with 25% of the shares vesting on the first anniversary of the employee's start date, and the remainder in equal monthly installments over three years. The RSUs follow a similar vesting schedule, with 25% vesting on the first four anniversaries of the employee's start date.

Positive

• Granting of 1,002 stock options and 657 RSUs signifies employee retention and incentive strategy.
• Stock options have a 10-year term indicating long-term commitment.
• Vesting schedule structured to promote employee longevity.

Negative

• No immediate financial benefit for shareholders.
• Potential dilution of existing shares due to new stock options and RSUs.

ANDOVER, Mass., June 21, 2024 /PRNewswire/ -- TransMedics Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart, and liver failure, today announced that on June 18, 2024, TransMedics granted non-qualified stock options to purchase an aggregate of 1,002 shares of its common stock and an aggregate of 657 restricted stock units to 1 employee, each as a material inducement for the employee's entry into employment with TransMedics. The grants were approved by the Compensation Committee of the TransMedics Board of Directors and were granted in accordance with Nasdaq Listing Rule 5635(c)(4) and pursuant to the TransMedics Group, Inc. Inducement Plan.

TransMedics granted non-qualified stock options to purchase 1,002 shares of TransMedics' common stock and 657 restricted stock units in the aggregate. The stock options were granted with a per share exercise price of $145.96, the closing price of the common stock on the Nasdaq Global Market on June 18, 2024. Twenty-five percent of the shares subject to each option will vest on the first yearly anniversary of the date of the employee's start of employment, with the remainder vesting in equal monthly installments over the subsequent three year period, subject to the employee's continued service with the Company through the applicable vesting date. The options have a 10-year term and are subject to the terms of the TransMedics Group, Inc. Inducement Plan. Twenty-five percent of each restricted stock unit award will vest on the first four anniversaries of the date of the employee's start of employment, subject to the employee's continued service with the Company through the applicable vesting date. The restricted stock units are subject to the terms of the TransMedics Group, Inc. Inducement Plan.

About TransMedics Group, Inc.
TransMedics is the world's leader in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. Headquartered in Andover, Massachusetts, the company was founded to address the unmet need for more and better organs for transplantation and has developed technologies to preserve organ quality, assess organ viability prior to transplant, and potentially increase the utilization of donor organs for the treatment of end-stage heart, lung, and liver failure.

Investor Contact:
Brian Johnston
332-895-3222
Investors@transmedics.com 

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SOURCE TransMedics Group, Inc.

FAQ

What is the significance of TransMedics' stock option grants on June 18, 2024?

TransMedics granted non-qualified stock options to purchase 1,002 shares and 657 restricted stock units to a new employee as an employment inducement under Nasdaq Listing Rule 5635(c)(4).

What is the exercise price of TransMedics' granted stock options on June 18, 2024?

The exercise price is $145.96 per share, the closing price on the Nasdaq Global Market on June 18, 2024.

How will the stock options and restricted stock units vest for the new TransMedics employee?

The stock options will vest with 25% on the first anniversary of the start date, and the remainder monthly over three years. The RSUs will vest 25% annually over four years, subject to continued service.

What is the term length for the stock options granted by TransMedics?

The stock options granted have a term of 10 years.

What rule governs the inducement grants made by TransMedics?

The grants are made in accordance with Nasdaq Listing Rule 5635(c)(4) under the TransMedics Inducement Plan.