Vaxart, Inc. Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

On May 23, 2024, Vaxart announced inducement equity awards granted on May 17, 2024, to a new non-executive employee. The awards include an option to purchase 15,000 shares of Vaxart’s common stock, vesting over four years, and 7,500 restricted stock units (RSUs), vesting 25% annually for four years. These awards were issued under Vaxart's 2024 Inducement Award Plan in accordance with Nasdaq Listing Rule 5635(c)(4). This plan is specifically used to attract new employees not previously with Vaxart or rejoining after a bona fide period of non-employment.

Positive

• Vaxart is attracting new talent with inducement equity awards.
• The equity awards are designed to align employee interests with shareholders.
• The 2024 Inducement Award Plan complies with Nasdaq Listing Rule 5635(c)(4).

Negative

• The issuance of new shares might dilute existing shareholders' equity.
• The stock options vesting over a long period could affect immediate financial performance.
• The restricted stock units will impact financial statements progressively over four years.

SOUTH SAN FRANCISCO, Calif., May 23, 2024 (GLOBE NEWSWIRE) -- Vaxart, Inc. (Nasdaq: VXRT) (the “Company” or “Vaxart”) today announced that on May 17, 2024, the Compensation Committee of the Board of Directors granted inducement equity awards covering an aggregate of 22,500 shares of its common stock to one new non-executive employee to induce him to accept employment with Vaxart.

The awards made are as follows: (i) an option to purchase 15,000 shares of Vaxart’s common stock, which vests as to 1/4th of the total shares on the one-year anniversary of the grant date of May 17, 2024, and as to 1/48th of the total shares on each month thereafter, and has a per share exercise price equal to the closing price of Vaxart’s common stock on the grant date; and (ii) a restricted stock unit award covering 7,500 shares of Vaxart’s common stock, which vests as to 25% of the shares underlying the award on the first, second, third and fourth anniversary of the grant date of May 17, 2024.

The awards were granted under the Vaxart, Inc. 2024 Inducement Award Plan as an employment “inducement award” pursuant to Nasdaq Listing Rule 5635(c)(4). The Inducement Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of Vaxart (or following a bona fide period of non-employment) as an inducement material to entering into employment with Vaxart.

About Vaxart
Vaxart is a clinical-stage biotechnology company developing a range of oral recombinant vaccines based on its proprietary delivery platform. Vaxart vaccines are designed to be administered using pills that can be stored and shipped without refrigeration and to eliminate the risk of needle-stick injury. Vaxart believes that its proprietary pill vaccine delivery platform is suitable to deliver recombinant vaccines, positioning the company to develop oral versions of currently marketed vaccines and to design recombinant vaccines for new indications. Vaxart’s development programs currently include pill vaccines designed to protect against coronavirus, norovirus and influenza, as well as a therapeutic vaccine for human papillomavirus (HPV), Vaxart’s first immune-oncology indication. Vaxart has filed broad domestic and international patent applications covering its proprietary technology and creations for oral vaccination using adenovirus and TLR3 agonists.

Contacts

Vaxart Media Relations:
Mark Herr
Vaxart, Inc.
mherr@vaxart.com
(203) 517-8957

Investor Relations:
Andrew Blazier
FINN Partners
IR@vaxart.com
(646) 871-8486

FAQ

What did Vaxart announce on May 23, 2024?

Vaxart announced inducement equity awards granted to a new non-executive employee on May 17, 2024.

How many shares were granted in Vaxart's inducement equity awards?

Vaxart granted an aggregate of 22,500 shares, including options to purchase 15,000 shares and 7,500 restricted stock units.

What is the vesting schedule for Vaxart's stock options granted on May 17, 2024?

The options vest as to 1/4th of the total shares on the first anniversary and 1/48th monthly thereafter.

What is the vesting schedule for the restricted stock units in Vaxart's inducement awards?

The restricted stock units vest 25% annually over four years.

Under which plan were Vaxart's inducement awards granted?

The awards were granted under Vaxart’s 2024 Inducement Award Plan.

Why were the inducement awards issued by Vaxart?

The inducement awards were issued to attract a new non-executive employee to join Vaxart.

How does Vaxart's 2024 Inducement Award Plan comply with Nasdaq rules?

The plan complies with Nasdaq Listing Rule 5635(c)(4), allowing equity awards to new employees.