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 5 new employees. The awards include:

- 9,522 non-qualified stock options with an exercise price of $144.35
- 6,240 restricted stock units

These grants were approved by the Compensation Committee and comply with Nasdaq Listing Rule 5635(c)(4). The stock options have a 10-year term and will vest over 4 years, with 25% vesting after the first year and the remainder vesting monthly over the next 3 years. The restricted stock units will vest in 25% increments annually over 4 years. Both awards are subject to continued employment with TransMedics.

Positive

• Attraction of new talent with stock-based compensation
• Alignment of employee interests with company performance through equity grants

Negative

• Potential dilution of existing shareholders due to new stock issuance

ANDOVER, Mass., July 18, 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 July 15, 2024, TransMedics granted non-qualified stock options to purchase an aggregate of 9,522 shares of its common stock and an aggregate of 6,240 restricted stock units to 5 employees, each as a material inducement for each 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 9,522 shares of TransMedics' common stock and 6,240 restricted stock units in the aggregate. The stock options were granted with a per share exercise price of $144.35, the closing price of the common stock on the Nasdaq Global Market on July 15, 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) issue on July 15, 2024?

TransMedics (TMDX) issued non-qualified stock options to purchase 9,522 shares of common stock and 6,240 restricted stock units to 5 new employees as inducement grants.

What is the exercise price of the stock options granted by TransMedics (TMDX) on July 15, 2024?

The stock options were granted with a per share exercise price of $144.35, which was the closing price of TransMedics' common stock on the Nasdaq Global Market on July 15, 2024.

How do the stock options and restricted stock units vest for TransMedics (TMDX) inducement grants?

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

What is the term of the stock options granted by TransMedics (TMDX) as inducement awards?

The stock options granted by TransMedics (TMDX) as inducement awards have a 10-year term.