Verastem Oncology Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Verastem Oncology (Nasdaq: VSTM) announced the grant of stock options and restricted stock units (RSUs) totaling 2,438 shares to two new employees as part of their inducement for employment. The options have an exercise price of $2.10 per share, which corresponds to the market closing price on January 3, 2022. These options and RSUs will vest 25% on the one-year anniversary of hiring, with the remainder vesting quarterly over three years, contingent on continued employment. The inducement is in accordance with Nasdaq Listing Rule 5635(c)(4).

Positive

• Grant of options and RSUs may enhance employee retention and motivation.
• Options priced at $2.10 aligns with market conditions, indicating strategic planning.

Negative

• The total shares granted may dilute existing shareholders' equity.

BOSTON--(BUSINESS WIRE)-- Verastem Oncology (Nasdaq:VSTM), a biopharmaceutical company committed to advancing new medicines for patients battling cancer, today announced the grant of options to purchase 1,625 shares of its common stock and the grant of 813 restricted stock units (RSUs) to two new employees. The awards were granted pursuant to the Nasdaq inducement grant exception as an inducement material to the employees’ acceptance of employment with Verastem Oncology in accordance with Nasdaq Listing Rule 5635(c)(4). The options have an exercise price equal to $2.10 per share, the closing price of Verastem Oncology's common stock as reported by Nasdaq on January 3, 2022. The stock options and RSUs that were granted to the two new employees will vest at a rate of twenty-five percent (25%) on the one-year anniversary of the employee's date of hire, with the remaining shares vesting quarterly over the next three (3) years in equal quarterly amounts, provided the employees continue to serve as employees of or other service providers to Verastem Oncology on each such vesting date.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220107005020/en/

Investors:

Ajay Munshi

VP, Corporate Development

+1 781-469-1579

amunshi@verastem.com

Sherri Spear

Argot Partners

+1 212-600-1902

sherri@argotpartners.com

Media:

Lisa Buffington

VP, Corporate Communications

+1 781-292-4205

lbuffington@verastem.com

Source: Verastem Oncology

FAQ

What is the purpose of the stock options and RSUs granted by Verastem (VSTM)?

The stock options and RSUs were granted as an inducement for employment to two new employees.

What is the exercise price of the stock options granted by Verastem (VSTM)?

The exercise price is $2.10 per share, equivalent to the closing price of Verastem's stock on January 3, 2022.

When do the stock options and RSUs granted to new employees of Verastem (VSTM) vest?

The options and RSUs vest 25% on the one-year anniversary of hiring, with the remaining shares vesting quarterly over the next three years.

How many shares of common stock were granted to new employees of Verastem (VSTM)?

A total of 2,438 shares, including 1,625 stock options and 813 restricted stock units, were granted.

Under what Nasdaq rule were the stock options and RSUs granted by Verastem (VSTM)?

The inducement was granted in accordance with Nasdaq Listing Rule 5635(c)(4).