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Verastem Oncology Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Very Positive)
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Rhea-AI Summary
Verastem Oncology (Nasdaq: VSTM) announced the appointment of Louis J. Denis, MD, as Chief Medical Officer, granting him options to purchase 450,000 shares of common stock and 150,000 restricted stock units (RSUs). The stock options are part of an inducement material to his acceptance of the role, according to Nasdaq Listing Rule 5635(c)(4). A stock option of 300,000 shares will vest over time, while 150,000 shares will vest upon meeting specific clinical milestones. Both options have an exercise price of $2.81, based on the closing price on September 20, 2021.
Positive
Appointment of a new Chief Medical Officer, enhancing leadership.
Stock options and RSUs linked to performance milestones may incentivize Dr. Denis.
Negative
None.
BOSTON--(BUSINESS WIRE)--
Verastem Oncology (Nasdaq:VSTM), a biopharmaceutical company committed to advancing new medicines for patients with cancer, today announced the grant of options to purchase 450,000 shares of its common stock and the grant of 150,000 restricted stock units (RSUs) to Louis J. Denis, MD, in connection with his appointment to Chief Medical Officer. The awards were granted pursuant to the Nasdaq inducement grant exception as an inducement material to Dr. Denis’ acceptance of employment with Verastem Oncology in accordance with Nasdaq Listing Rule 5635(c)(4). A stock option to purchase 300,000 shares of Verastem Oncology’s common stock and the 150,000 RSUs will vest as to 25% of the shares on the first anniversary of the date of hire and as to an additional 6.25% of the shares at the end of each successive three-month period following the first anniversary of the date of hire, provided that Dr. Denis continues to serve as an employee of or other service provider to Verastem Oncology on each such vesting date. A stock option to purchase 150,000 shares of Verastem Oncology’s common stock will vest upon achievement of certain clinical development milestones, provided that Dr. Denis continues to serve as an employee of or other service provider to Verastem Oncology on the vesting dates. Both stock options have an exercise price equal to $2.81, the closing price of Verastem Oncology's common stock as reported by Nasdaq on September 20, 2021.
About Verastem Oncology
Verastem Oncology (Nasdaq: VSTM) (Verastem, Inc.) is a development-stage biopharmaceutical company committed to the development and commercialization of new medicines to improve the lives of patients diagnosed with cancer. Our pipeline is focused on novel small molecule drugs that inhibit critical signaling pathways in cancer that promote cancer cell survival and tumor growth, including RAF/MEK inhibition and FAK inhibition. For more information, please visit www.verastem.com.
What stock options were granted to Louis J. Denis at Verastem Oncology?
Louis J. Denis was granted options to purchase 450,000 shares of common stock and 150,000 restricted stock units.
What is the exercise price for the stock options granted to Dr. Denis?
The exercise price for the stock options is $2.81, based on the closing price on September 20, 2021.
How will the stock options for Dr. Denis vest?
The options will vest as 25% on the first anniversary of hire and 6.25% at the end of each successive three-month period, with additional options vesting upon achieving clinical milestones.
What is the significance of Nasdaq Listing Rule 5635(c)(4) in this context?
It allows the granting of inducement stock options as part of the hiring process, which was utilized for Dr. Denis's appointment.
How does the appointment of a Chief Medical Officer impact Verastem Oncology's operations?
The appointment may strengthen leadership in developing new therapies and enhancing clinical strategies.
