Vor Bio Reports Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Vor Bio, a clinical-stage cell and genome engineering company, announced that on June 1, 2024, the Compensation Committee of the Board of Directors granted stock options and restricted stock units (RSUs) to a new employee. The inducement grant includes 1,000 stock options and 1,500 RSUs under the Vor Biopharma 2023 Inducement Plan, in accordance with Nasdaq Listing Rule 5635(c)(4). The stock options have a ten-year term, an exercise price of $1.41 per share, and will vest over four years. The RSUs will also vest over four years with a similar vesting schedule.

Positive

• Grant of 1,000 stock options and 1,500 RSUs to a new employee, indicating investment in talent.
• Stock options set at the June 3, 2024 closing price of $1.41 per share, suggesting fair market value compensation.
• Four-year vesting schedule for both stock options and RSUs, promoting long-term employee retention.
• Compliance with Nasdaq Listing Rule 5635(c)(4), ensuring regulatory adherence.

Negative

• The dilutive effect on current shareholders due to the issuance of new stock options and RSUs.
• Potential high employee turnover risk if the vesting schedule is not met.
• The exercise price of $1.41 per share could be seen as low, indicating potentially undervalued stock.

CAMBRIDGE, Mass., June 04, 2024 (GLOBE NEWSWIRE) -- Vor Bio (Nasdaq: VOR), a clinical-stage cell and genome engineering company, today announced that, effective as of June 1, 2024, the Compensation Committee of the Board of Directors granted stock options to purchase an aggregate of 1,000 shares of Vor Bio’s common stock and restricted stock units (“RSUs”) representing the right to receive an aggregate of 1,500 shares of Vor Bio’s common stock to one newly hired employee. The foregoing stock options and RSUs were granted as material inducements to employment with Vor Bio in accordance with Nasdaq Listing Rule 5635(c)(4) and were granted under the Vor Biopharma Inc. 2023 Inducement Plan (the “Inducement Plan”).

The stock options have a ten-year term and an exercise price of $1.41 per share, which is equal to the closing price of Vor Bio’s common stock on June 3, 2024. The options will vest over a four-year period, with 25% of the shares vesting after 12 months and the remaining shares vesting monthly over the following 36 months, subject to the employee’s continued employment with Vor Bio on such vesting dates. The RSUs will vest over a four-year period, with 25% of the shares vesting after 12 months and the remaining shares vesting quarterly over the following 36 months, subject to the employee’s continued employment with Vor Bio on such vesting dates. The options and RSUs are subject to the terms and conditions of the Inducement Plan and the terms and conditions of an award agreement covering the grants.

About Vor Bio
Vor Bio is a clinical-stage cell and genome engineering company that aims to change the standard of care for patients with blood cancers by engineering hematopoietic stem cells to enable targeted therapies post-transplant. For more information, visit: www.vorbio.com.

Contact:
Investors & Media
Sarah Spencer
+1 857-242-6076
sspencer@vorbio.com

FAQ

What does Vor Bio's recent inducement grant include?

It includes 1,000 stock options and 1,500 restricted stock units (RSUs) for a newly hired employee.

What is the exercise price for Vor Bio's stock options granted on June 1, 2024?

The exercise price is $1.41 per share.

Over what period do the stock options and RSUs vest for the new Vor Bio employee?

They vest over a four-year period.

How are the stock options and RSUs granted by Vor Bio structured?

Stock options vest 25% after 12 months and monthly thereafter, while RSUs vest 25% after 12 months and quarterly thereafter.

Why did Vor Bio grant these stock options and RSUs?

The grants were made as material inducements for employment under Nasdaq Listing Rule 5635(c)(4).