Viridian Therapeutics Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Viridian Therapeutics announced that its Compensation Committee approved the grant of non-qualified stock options to purchase 450,000 shares of common stock to two new employees. These inducement grants, given outside the company's 2016 Equity Incentive Plan but adhering to its terms, were approved on June 3, 2024. The stock options' exercise price matches Viridian's closing stock price on the grant date. The grants will vest over four years, with 25% vesting after one year, and the remainder vesting monthly over the next three years, contingent upon continued employment.

Positive

• Approval of 450,000 stock options for new employees can attract top talent.
• Stock options vest over four years, potentially increasing employee retention.

Negative

• Inducement grants could lead to shareholder dilution.
• Grants made outside the existing equity incentive plan might raise governance concerns.

WALTHAM, Mass.--(BUSINESS WIRE)-- Viridian Therapeutics, Inc. (Nasdaq: VRDN) (the “company” or “Viridian”), a biopharmaceutical company focused on discovering and developing potential best-in-class medicines for serious and rare diseases, today announced that a majority of the independent directors serving on the Compensation Committee of the company’s Board of Directors approved the grant of non-qualified stock options to purchase an aggregate of 450,000 shares of the company’s common stock to two new employees (the “Inducement Grants”) on June 3, 2024 (the “Grant Date”). The Inducement Grants have been granted outside of the company’s Amended and Restated 2016 Equity Incentive Plan (the “Plan”) but remain subject to the terms and conditions of such Plan. The Inducement Grants were granted as an inducement material to these individuals entering into employment with Viridian in accordance with Nasdaq Listing Rule 5635(c)(4).

The Inducement Grants have an exercise price per share that is equal to the closing price of Viridian’s common stock on the Grant Date. The Inducement Grants will vest over a four-year period, with 25% of the shares vesting on the one-year anniversary of the employee’s start date, and thereafter the remainder of the shares vest in 36 equal monthly installments, subject to each employee’s continued employment with Viridian through the applicable vesting dates.

About Viridian Therapeutics

Viridian is a biopharmaceutical company focused on engineering and developing potential best-in-class medicines for patients with serious and rare diseases. Viridian’s expertise in antibody discovery and protein engineering enables the development of differentiated therapeutic candidates for previously validated drug targets in commercially established disease areas.

Viridian is advancing multiple candidates in the clinic for the treatment of patients with thyroid eye disease (TED). The company is conducting two global Phase 3 clinical trials (THRIVE and THRIVE-2) to evaluate the safety and efficacy of VRDN-001 in patients with active and chronic TED. Viridian’s goal is to advance VRDN-001 as a potential best-in-class intravenous therapy followed by VRDN-003 as a potential first- and best-in-class subcutaneous therapy for the treatment of TED.

In addition to its TED portfolio, Viridian is advancing a novel portfolio of neonatal Fc receptor (FcRn) inhibitors, including VRDN-006 and VRDN-008, which has the potential to be developed in multiple autoimmune diseases.

Viridian is based in Waltham, Massachusetts. For more information, please visit www.viridiantherapeutics.com. Follow Viridian on LinkedIn and X.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240606422492/en/

Louisa Stone, 617-272-4604

Manager, Investor Relations

IR@viridiantherapeutics.com

Source: Viridian Therapeutics, Inc.

FAQ

What is the significance of the inducement grants announced by Viridian Therapeutics?

The inducement grants involve stock options for 450,000 shares to attract new employees, approved on June 3, 2024.

When will the Viridian Therapeutics stock options granted on June 3, 2024, vest?

These stock options will vest over four years, with 25% vesting after one year and the rest vesting monthly over the next three years.

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

The exercise price matches the closing price of Viridian's stock on the grant date, June 3, 2024.

How do the new stock options granted by Viridian Therapeutics affect current shareholders?

The inducement grants may lead to shareholder dilution as new shares are issued.