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 covering 124,100 shares to 11 new employees. This includes inducement stock options for 65,000 shares and 59,100 restricted stock units (RSUs). The stock options have an exercise price of $18.90 per share and vest over four years. The RSUs also vest over four years with similar terms. These grants were made outside the 2018 Equity Incentive Plan as a condition of employment, compliant with Nasdaq Listing Rule 5635(c)(4).

Positive

• Inducement grants can attract skilled employees, enhancing talent acquisition.
• Equity grants align employee interests with company performance, potentially boosting engagement.

Negative

• The issuance of new shares may dilute existing shareholder equity.
• Stock options priced at market value could imply limited upside for employees.

SAN DIEGO, Dec. 14, 2022 (GLOBE NEWSWIRE) -- Travere Therapeutics, Inc. (NASDAQ: TVTX) today announced that on December 10, 2022, the Compensation Committee of its Board of Directors granted inducement equity grants covering an aggregate of 124,100 shares of its common stock to 11 new employees, consisting of inducement stock options to purchase an aggregate of 65,000 shares of common stock and inducement restricted stock units, or RSUs, covering an aggregate of 59,100 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 $18.90 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:
Naomi Eichenbaum
Vice President, Investor Relations
IR@travere.com
888-969-7879

FAQ

What recent equity awards were granted by Travere Therapeutics (TVTX)?

On December 10, 2022, Travere Therapeutics granted inducement equity awards covering 124,100 shares to 11 new employees.

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

The stock options have an exercise price of $18.90 per share.

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

The restricted stock units (RSUs) vest over four years, with 25% vesting on each anniversary of the grant date.

What is the term for the inducement stock options granted by Travere?

The inducement stock options have a 10-year term from the grant date.

What compliance rule did Travere Therapeutics follow for these equity grants?

The grants were made in accordance with Nasdaq Listing Rule 5635(c)(4).