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

Rhea-AI Summary

Travere Therapeutics (NASDAQ: TVTX) announced on January 10, 2022, that its Compensation Committee granted inducement equity to five new employees. This includes stock options for 33,000 shares and RSUs for 9,000 shares, all under the terms of the 2018 Equity Incentive Plan but granted as inducements to employment. The options have an exercise price of $28.04, vesting over four years, while the RSUs also vest over the same period. These grants comply with Nasdaq Listing Rule 5635(c)(4), aimed at attracting and retaining talent in the biopharmaceutical sector.

Positive

• Inducement equity grants totaling 42,000 shares indicate company growth and talent acquisition.
• Stock options and RSUs enhance employee retention and motivation.
• The exercise price for options aligns with the market, suggesting strategic planning.

Negative

• None.

SAN DIEGO, Jan. 12, 2022 (GLOBE NEWSWIRE) -- Travere Therapeutics, Inc. (NASDAQ: TVTX) today announced that on January 10, 2022, the Compensation Committee of its Board of Directors granted inducement equity grants covering an aggregate of 42,000 shares of its common stock to five new employees, consisting of inducement stock options to purchase an aggregate of 33,000 shares of common stock and inducement restricted stock units, or RSUs, covering an aggregate of 9,000 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 $28.04 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 are the details of the new employee equity grants by Travere Therapeutics on January 10, 2022?

On January 10, 2022, Travere Therapeutics granted inducement equity covering 42,000 shares to five new employees, including stock options for 33,000 shares and RSUs for 9,000 shares.

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

The exercise price of the stock options granted by Travere Therapeutics is $28.04 per share.

How do the RSUs vest for new employees at Travere Therapeutics?

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

What is the significance of Nasdaq Listing Rule 5635(c)(4) in Travere Therapeutics' equity grants?

Nasdaq Listing Rule 5635(c)(4) allows inducement equity grants to attract new employees, which Travere Therapeutics utilized for the recent equity awards.

How do the stock options at Travere Therapeutics vest?

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