Viracta Therapeutics Announces New Employment Inducement Grant

Rhea-AI Summary

Viracta Therapeutics, Inc. (Nasdaq: VIRX) announced the approval of non-qualified stock options for a new employee, allowing the purchase of 80,000 shares. The options will vest over four years, starting with 25% after one year, and the exercise price is set at $2.985 per share, aligned with the stock's closing price on the announcement date. This grant falls under the 2021 Inducement Equity Incentive Plan, aimed at attracting new talent. Viracta focuses on treatments for virus-associated cancers, including ongoing clinical trials for its lead product, Nana-val.

Positive

• Approval of stock options for a new employee, potentially enhancing recruitment efforts.
• Nana-val is currently being evaluated in pivotal global clinical trials, indicating ongoing product development.

Negative

• Stock options dilute existing shareholder equity due to the issuance of new shares.
• No significant financial metrics or clinical trial results were disclosed, leaving uncertainty about the company's progress.

SAN DIEGO, Nov. 14, 2022 (GLOBE NEWSWIRE) -- Viracta Therapeutics, Inc. (Nasdaq: VIRX), a precision oncology company focused on the treatment and prevention of virus-associated cancers that impact patients worldwide, today announced that the Compensation Committee of Viracta's Board of Directors approved the grant of non-qualified stock options to a new non-executive employee to purchase an aggregate of 80,000 shares of common stock. The options vest over four years, with 25% vesting on the one-year anniversary of the employment commencement date and the remaining 75% vesting in equal monthly increments over the succeeding 36 months, subject to the individual's continuous employment through each vesting date. The options each have an exercise price of $2.985 per share, which is equal to the closing price of Viracta's common stock on November 14, 2022.

The inducement award was made under Viracta’s 2021 Inducement Equity Incentive Plan and related stock option agreement, which have terms and conditions generally consistent with those of Viracta’s 2021 Equity Incentive Plan. The Inducement Plan is used exclusively to grant equity awards to individuals who were not previously an employee or non-employee director of Viracta as an inducement material to such individual’s entering into employment with Viracta in accordance with Nasdaq Listing Rule 5635(c)(4).

About Viracta Therapeutics, Inc.

Viracta is a precision oncology company focused on the treatment and prevention of virus-associated cancers that impact patients worldwide. Viracta’s lead product candidate is an all-oral combination therapy of its proprietary investigational drug, nanatinostat, and the antiviral agent valganciclovir (collectively referred to as Nana-val). Nana-val is currently being evaluated in multiple ongoing clinical trials, including a pivotal, global, multicenter, open-label Phase 2 basket trial for the treatment of multiple subtypes of relapsed/refractory Epstein-Barr virus-positive (EBV⁺) lymphoma (NAVAL-1), as well as a multinational, open-label Phase 1b/2 trial for the treatment of EBV⁺ recurrent or metastatic nasopharyngeal carcinoma and other EBV⁺ solid tumors. Viracta is also pursuing the application of its “Kick and Kill” approach in other virus-related cancers.

For additional information please visit www.viracta.com.

Investor Relations Contact:
Ashleigh Barreto
Head of Investor Relations & Corporate Communications
Viracta Therapeutics, Inc.
abarreto@viracta.com

SOURCE Viracta Therapeutics, Inc.

FAQ

What is the stock option grant announced by Viracta (VIRX)?

Viracta approved a grant of non-qualified stock options to a new employee for 80,000 shares, vesting over four years.

What is the exercise price of the stock options for Viracta (VIRX)?

The exercise price is set at $2.985 per share, equivalent to the stock's closing price on November 14, 2022.

What is Nana-val, the lead product candidate of Viracta (VIRX)?

Nana-val is an all-oral combination therapy under evaluation for virus-associated cancers in multiple clinical trials.

What clinical trials is Viracta (VIRX) currently conducting?

Viracta is conducting a Phase 2 basket trial for EBV-positive lymphoma and a Phase 1b/2 trial for EBV-positive solid tumors.

How does the stock option grant affect Viracta's (VIRX) shareholders?

The issuance of stock options can dilute existing shareholder equity, as new shares will be issued upon exercise.