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

Rhea-AI Summary

Travere Therapeutics (NASDAQ: TVTX) announced on September 10, 2021, the grant of inducement equity grants totaling 48,100 shares of common stock to five new employees. This includes stock options for 40,500 shares and restricted stock units (RSUs) for 7,600 shares, all under the 2018 Equity Incentive Plan. The options have an exercise price of $23.55 per share and vest over four years, while the RSUs also vest over the same period. The granting was made to incentivize new hires in compliance with Nasdaq Listing Rule 5635(c)(4).

Positive

• Granting of 48,100 shares could enhance employee retention and motivation.
• Inducement equity grants align new employees' interests with company performance.

Negative

• The necessity of inducement grants may indicate challenges in attracting talent.

SAN DIEGO, Sept. 13, 2021 (GLOBE NEWSWIRE) -- Travere Therapeutics, Inc. (NASDAQ: TVTX) today announced that on September 10, 2021, the Compensation Committee of its Board of Directors granted inducement equity grants covering an aggregate of 48,100 shares of its common stock to five new employees, consisting of inducement stock options to purchase an aggregate of 40,500 shares of common stock and inducement restricted stock units, or RSUs, covering an aggregate of 7,600 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 $23.55 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:
Chris Cline, CFA                                 
Senior Vice President, Investor Relations & Corporate Communications
888-969-7879                                        
IR@travere.com

FAQ

What equity grants were announced by Travere Therapeutics on September 10, 2021?

Travere Therapeutics announced inducement equity grants covering 48,100 shares, including stock options and restricted stock units.

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

The stock options have an exercise price of $23.55 per share.

How long is the vesting period for the RSUs granted by Travere Therapeutics?

The RSUs vest over four years, with 25% vesting on each anniversary of the grant date.

Who received the inducement equity grants from Travere Therapeutics?

The grants were awarded to five new employees of Travere Therapeutics.