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

Rhea-AI Summary

TransMedics Group (Nasdaq: TMDX), a medical technology company focused on organ transplant therapy, has granted inducement awards to a new employee. The grants, approved by the Compensation Committee, include:

- 336 non-qualified stock options with an exercise price of $156.00 per share
- 218 restricted stock units

The stock options will vest 25% after one year, with the remainder vesting monthly over three years. The restricted stock units will vest 25% annually over four years. Both grants are subject to continued employment and the terms of the TransMedics Group, Inc. Inducement Plan. These awards were granted in accordance with Nasdaq Listing Rule 5635(c)(4) as material inducement for the employee's entry into employment with TransMedics.

Positive

• Attracting new talent with stock-based compensation
• Aligning employee interests with company performance through equity grants

Negative

• Potential dilution of existing shareholders' equity

ANDOVER, Mass., Sept. 27, 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 September 24, 2024, TransMedics granted non-qualified stock options to purchase an aggregate of 336 shares of its common stock and an aggregate of 218 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 336 shares of TransMedics' common stock and 218 restricted stock units in the aggregate. The stock options were granted with a per share exercise price of $156.00, the closing price of the common stock on the Nasdaq Global Market on September 24, 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 type of inducement grants did TransMedics (TMDX) offer on September 24, 2024?

TransMedics (TMDX) granted 336 non-qualified stock options and 218 restricted stock units to a new employee as inducement awards on September 24, 2024.

What is the exercise price of the stock options granted by TransMedics (TMDX) on September 24, 2024?

The stock options were granted with a per share exercise price of $156.00, which was the closing price of TransMedics' common stock on the Nasdaq Global Market on September 24, 2024.

How do the inducement grants made by TransMedics (TMDX) vest?

The stock options vest 25% after one year, with the remainder vesting monthly over three years. The restricted stock units vest 25% annually over four years, subject to continued employment.

Under which Nasdaq rule did TransMedics (TMDX) grant these inducement awards?

TransMedics (TMDX) granted these inducement awards in accordance with Nasdaq Listing Rule 5635(c)(4).