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

Rhea-AI Summary

On June 4, 2024, Vera Therapeutics granted inducement awards to five new employees under its 2024 Inducement Plan. These awards include non-qualified stock options to purchase 31,250 shares of Class A common stock and restricted stock units (RSUs) for 14,500 shares. The stock options have an exercise price of $39.47 per share, matching Vera’s closing price on that date. The stock options and RSUs vest over four years with specific conditions attached. These grants were approved by Vera's Compensation Committee in adherence to Nasdaq Listing Rule 5635(c)(4) as an inducement for employment.

Positive

• Approval of inducement awards may help attract and retain talent, which is important for growth.
• Stock options and RSUs align employee interests with shareholder value, promoting long-term company performance.
• The exercise price of $39.47 per share aligns with the market value, reflecting confidence in the company’s valuation.

Negative

• Stock options and RSUs could lead to shareholder dilution, potentially impacting existing investors.
• The four-year vesting period means the benefits will not be realized immediately, delaying potential positive impact on employee morale and productivity.

BRISBANE, Calif., June 07, 2024 (GLOBE NEWSWIRE) -- Vera Therapeutics, Inc. (Nasdaq: VERA) today announced that on June 4, 2024, the Compensation Committee of Vera’s Board of Directors granted inducement awards consisting of non-qualified stock options to purchase 31,250 shares of Class A common stock and restricted stock units (RSUs) for 14,500 shares of Class A common stock to five new employees under Vera’s 2024 Inducement Plan (the Inducement Plan). The Compensation Committee approved the awards as an inducement material to the new employees’ employment in accordance with Nasdaq Listing Rule 5635(c)(4).

Each stock option granted on June 4, 2024 has an exercise price per share equal to $39.47 per share, Vera’s closing trading price on June 4, 2024. Each stock option will vest over four years, with 25% of the underlying shares vesting on the first anniversary of the applicable vesting commencement date and the balance of the underlying shares vesting monthly thereafter over 36 months, subject to the new employee’s continued service relationship with Vera through the applicable vesting dates. Each of the RSUs will vest over four years, with 25% of the underlying shares vesting on each anniversary of August 20, 2024, subject to the new employee’s continued service relationship with Vera through the applicable vesting dates. The awards are subject to the terms and conditions of the Inducement Plan and the terms and conditions of an applicable award agreement covering the grant.

About Vera
Vera Therapeutics is a late clinical-stage biotechnology company focused on developing treatments for serious immunological diseases. Vera’s mission is to advance treatments that target the source of immunological diseases in order to change the standard of care for patients. Vera’s lead product candidate is atacicept, a fusion protein self-administered as a subcutaneous injection once weekly that blocks both B-cell Activating Factor (BAFF) and A PRoliferation-Inducing Ligand (APRIL), which stimulate B cells and plasma cells to produce autoantibodies contributing to certain autoimmune diseases, including IgAN, also known as Berger’s disease, and lupus nephritis. In addition, Vera is evaluating additional diseases where the reduction of autoantibodies by atacicept may prove medically useful. Vera is also developing MAU868, a monoclonal antibody designed to neutralize infection with BK virus (BKV), a polyomavirus that can have devastating consequences in certain settings such as kidney transplant. Vera retains all global developmental and commercial rights to atacicept and MAU868. For more information, please visit www.veratx.com.

For more information, please contact:

Investor Contact:
Joyce Allaire
LifeSci Advisors
212-915-2569
jallaire@lifesciadvisors.com

Media Contact:
Mari Purpura
LifeSci Advisors
mpurpura@lifesciadvisors.com

FAQ

What inducement awards did Vera Therapeutics announce on June 4, 2024?

Vera Therapeutics announced non-qualified stock options to purchase 31,250 shares of Class A common stock and restricted stock units (RSUs) for 14,500 shares under its 2024 Inducement Plan.

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

The exercise price for the stock options is $39.47 per share, which was Vera's closing trading price on June 4, 2024.

How do the stock options awarded by Vera Therapeutics vest?

The stock options vest over four years, with 25% vesting on the first anniversary of the vesting commencement date and the rest vesting monthly over the next 36 months.

When will the RSUs granted by Vera Therapeutics vest?

The RSUs will vest over four years, with 25% vesting on each anniversary of August 20, 2024, subject to continued employment.

Why did Vera Therapeutics grant these inducement awards?

The inducement awards were granted as an incentive material to the new employees' employment, in line with Nasdaq Listing Rule 5635(c)(4).