Travere Therapeutics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Travere Therapeutics (NASDAQ: TVTX) announced the grant of inducement equity awards totaling 89,950 shares to eleven new employees on July 10, 2021. This includes stock options for 65,100 shares and restricted stock units (RSUs) covering 24,850 shares, granted outside the 2018 Equity Incentive Plan. The stock options have an exercise price of $14.68 and a 10-year term, vesting over four years. The RSUs also vest over four years. This initiative aims to attract talent critical for advancing its mission in rare disease treatments.

Positive

• Inducement grants signaling strong recruitment efforts, enhancing talent acquisition.
• Stock options with a set exercise price of $14.68, potentially beneficial if the stock price increases.

Negative

• None.

SAN DIEGO, July 14, 2021 (GLOBE NEWSWIRE) -- Travere Therapeutics, Inc. (NASDAQ: TVTX) today announced that on July 10, 2021, the Compensation Committee of its Board of Directors granted inducement equity grants covering an aggregate of 89,950 shares of its common stock to eleven new employees, consisting of inducement stock options to purchase an aggregate of 65,100 shares of common stock and inducement restricted stock units, or RSUs, covering an aggregate of 24,850 shares of its common stock. These inducement stock options and inducement RSUs are subject to the terms of Travere’s 2018 Equity Incentive Plan (“2018 Plan”), but were granted outside of the 2018 Plan and were granted as inducements material to the new employees entering into employment with Travere in accordance with Nasdaq Listing Rule 5635(c)(4).

The stock options have an exercise price of $14.68 per share, the closing price of Travere’s common stock on the next trading day following the date of grant, are non-qualified stock options, have a 10-year term and vest over four years, with 25% of the shares vesting on the one-year anniversary of the grant date and the remaining 75% of the shares vesting in equal monthly installments over the following 36 months, subject to the new employee’s continued service relationship with Travere through the applicable vesting dates.

The RSUs vest over four years, with 25% of the shares vesting on each anniversary of the grant date, subject to the new employee’s continued service relationship with Travere through the applicable vesting dates.

About Travere Therapeutics

At Travere Therapeutics we are in rare for life. We are a biopharmaceutical company that comes together every day to help patients, families and caregivers of all backgrounds as they navigate life with a rare disease. On this path, we know the need for treatment options is urgent – that is why our global team works with the rare disease community to identify, develop and deliver life-changing therapies. In pursuit of this mission, we continuously seek to understand the diverse perspectives of rare patients and to courageously forge new paths to make a difference in their lives and provide hope – today and tomorrow. For more information, visit travere.com

Contact:
Chris Cline, CFA
Senior Vice President, Investor Relations & Corporate Communications
888-969-7879
IR@travere.com

FAQ

What stock options did Travere Therapeutics grant on July 10, 2021?

Travere Therapeutics granted inducement stock options to purchase 65,100 shares of common stock at an exercise price of $14.68.

How many shares of RSUs were granted to new employees by Travere Therapeutics?

Travere Therapeutics granted 24,850 shares of restricted stock units (RSUs) to new employees.

What is the vesting period for the stock options granted by Travere Therapeutics?

The stock options vest over four years, with 25% vesting on the one-year anniversary and the remaining 75% vesting monthly over the next 36 months.

What is the purpose of Travere Therapeutics' inducement grants?

The inducement grants aim to attract new employees and enhance the company's talent pool to support its rare disease initiatives.