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

Rhea-AI Summary

Travere Therapeutics announced the issuance of inducement equity grants to five new employees under Nasdaq Listing Rule 5635(c)(4) on May 10, 2024.

The grants include stock options for 25,000 shares and restricted stock units (RSUs) for 26,500 shares of common stock. The stock options have an exercise price of $6.30 per share, the closing price on the date of grant, and vest over a four-year period. The RSUs also vest over four years, with 25% of shares vesting annually.

These inducement grants are intended to attract new talent and are issued outside of Travere's 2018 Equity Incentive Plan but adhere to its terms.

Positive

• Inducement grants issued to attract new talent.
• Stock options have a competitive exercise price of $6.30 per share.
• Vesting structure designed for long-term employee retention (over four years).

Negative

• Stock options and RSUs are subject to vesting conditions, potentially affecting short-term stock performance.
• Grants issued outside of the 2018 Equity Incentive Plan, indicating potential dilution risk.

SAN DIEGO, May 15, 2024 (GLOBE NEWSWIRE) --  Travere Therapeutics, Inc. (NASDAQ: TVTX) today announced that on May 10, 2024, the Compensation Committee of its Board of Directors granted inducement equity grants covering an aggregate of 51,500 shares of its common stock to five new employees, consisting of inducement stock options to purchase an aggregate of 25,000 shares of common stock and inducement restricted stock units, or RSUs, covering an aggregate of 26,500 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 $6.30 per share, the closing price of Travere’s common stock on 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 Info

Media: 888-969-7879                                         mediarelations@travere.com	Investors: 888-969-7879                                         IR@travere.com

FAQ

What did Travere Therapeutics announce on May 15, 2024?

Travere Therapeutics announced inducement equity grants to new employees under Nasdaq Listing Rule 5635(c)(4).

How many shares are covered by Travere Therapeutics' inducement grants?

The inducement grants cover an aggregate of 51,500 shares of common stock.

What is the exercise price for the stock options granted by Travere Therapeutics?

The exercise price for the stock options is $6.30 per share.

Over what period do the inducement RSUs granted by Travere Therapeutics vest?

The inducement RSUs vest over four years.

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

The stock options vest 25% on the one-year anniversary and the remaining 75% in equal monthly installments over the following 36 months.

Under which Nasdaq rule were the inducement grants issued by Travere Therapeutics?

The inducement grants were issued under Nasdaq Listing Rule 5635(c)(4).