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

Rhea-AI Summary

TransMedics, a medical technology company focused on organ transplant therapy, announced on May 17, 2024, the granting of stock options and restricted stock units to new employees. On May 14, 2024, the Compensation Committee approved the inducement grants, including non-qualified stock options to purchase 18,320 shares and 12,068 restricted stock units. The stock options have an exercise price of $132.44 per share, aligned with the stock's closing price on the Nasdaq Global Market that day. The stock options will vest 25% after the first year, with the remainder vesting monthly over three years. The restricted stock units will vest 25% each year over four years. These grants aim to attract and retain key talent.

Positive

• TransMedics is taking steps to attract and retain key talent by offering stock options and restricted stock units.
• The inducement grants align with the stock's closing price, minimizing potential dilution impact.
• Clear vesting schedules provide a structured retention strategy for new employees.

Negative

• Stock options and restricted stock units could lead to shareholder dilution over time.
• Inducement grants reflect significant dependence on stock-based compensation, which may affect earnings per share.
• Long-term vesting schedules introduce risks if employee turnover increases.

ANDOVER, Mass., May 17, 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 May 14, 2024, TransMedics granted non-qualified stock options to purchase an aggregate of 18,320 shares of its common stock and an aggregate of 12,068 restricted stock units to 8 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 18,320 shares of TransMedics' common stock and 12,068 restricted stock units in the aggregate. The stock options were granted with a per share exercise price of $132.44, the closing price of the common stock on the Nasdaq Global Market on May 14, 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 purpose of TransMedics granting stock options and restricted stock units?

TransMedics granted stock options and restricted stock units as inducements to attract and retain new employees.

How many stock options and restricted stock units did TransMedics grant on May 14, 2024?

TransMedics granted 18,320 stock options and 12,068 restricted stock units on May 14, 2024.

What is the exercise price for the stock options granted by TransMedics?

The exercise price for the stock options is $132.44 per share.

What are the vesting schedules for the stock options and restricted stock units granted by TransMedics?

Stock options vest 25% after one year, with the rest vesting monthly over three years. Restricted stock units vest 25% each year over four years.

Under which NASDAQ Listing Rule did TransMedics grant these inducements?

TransMedics granted these inducements under NASDAQ Listing Rule 5635(c)(4).