X4 Pharmaceuticals Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

X4 Pharmaceuticals (Nasdaq: XFOR) announced on September 30, 2021, the issuance of inducement awards to new employees under its 2019 Inducement Equity Incentive Plan. The awards comprise options to purchase 95,200 shares and restricted stock units covering 6,000 shares of common stock. The exercise price for options is set at $5.29 per share, matching the closing price on the grant date. Options will vest over four years, while restricted stock units will vest annually over the same period, contingent upon continued employment.

Positive

• Inducement awards enhance talent acquisition efforts with 95,200 stock options and 6,000 restricted stock units.
• Exercise price of options aligns with market value ($5.29 per share), indicating no immediate dilution.

Negative

• The need for inducement awards may reflect challenges in recruiting talent or retaining existing employees.

BOSTON, Oct. 01, 2021 (GLOBE NEWSWIRE) -- X4 Pharmaceuticals, Inc. (Nasdaq: XFOR), a leader in the discovery and development of novel therapies targeting diseases resulting from dysfunction of the CXCR4 pathway, today announced that, on September 30, 2021, the Compensation Committee of X4’s Board of Directors issued inducement awards to new employees under the X4 Pharmaceuticals, Inc. 2019 Inducement Equity Incentive Plan (the “2019 Inducement Plan”). The 2019 Inducement Plan is used exclusively for the grant of equity awards to individuals who were not previously an employee of X4. The inducement awards consist of options to purchase an aggregate of 95,200 shares of X4’s common stock and restricted stock units covering 6,000 shares of X4’s common stock. These stock awards were granted as an inducement material to the new employees entering into employment with X4 in accordance with Nasdaq Listing Rule 5635(c)(4).

The options have a ten-year term and an exercise price of $5.29 per share, which is equal to the closing price of X4’s common stock on September 30, 2021. Each option 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 X4 on such vesting dates. The options are subject to the terms and conditions of the 2019 Inducement Plan and the terms and conditions of an award agreement covering the grant.

The restricted stock units vest over four years, with 25% of the shares vesting annually on each of the first, second, third and fourth anniversary dates of the grant, subject to the employees’ continued employment with X4 on such vesting dates. The restricted stock units are subject to the terms and conditions of the 2019 Inducement Plan and the terms and conditions of a restricted stock unit award agreement covering the grant.

About X4 Pharmaceuticals, Inc.
X4 Pharmaceuticals is a late-stage clinical biopharmaceutical company and a leader in the discovery and development of novel therapies for the treatment of diseases resulting from dysfunction of the CXCR4 pathway, with a focus on rare diseases and those with limited treatment options. The company’s lead candidate, mavorixafor, is a first-in-class, small molecule antagonist of chemokine receptor CXCR4 being developed as a once-daily oral therapy. X4 believes that inhibition of the CXCR4 receptor creates the potential for mavorixafor to provide therapeutic benefit across a wide variety of diseases, including primary immunodeficiencies and certain types of cancer. The efficacy and safety of mavorixafor, dosed once daily, is currently being evaluated in a global Phase 3 clinical trial in patients with WHIM syndrome, and in two Phase 1b clinical trials – in combination with ibrutinib in patients with Waldenström’s macroglobulinemia, and as monotherapy in patients with Severe Congenital Neutropenia. X4 is continuing to leverage its insights into CXCR4 biology at its corporate headquarters in Boston, Massachusetts and at its research facility in Vienna, Austria, and is discovering and developing additional product candidates. For more information, please visit www.x4pharma.com.

Investors and Media:
Daniel Ferry
Managing Director
LifeSci Advisors
daniel@lifesciadvisors.com
(617) 430-7576

Mónica Rouco Molina
Senior Account Executive
LifeSci Communications
mroucomolina@lifescicomms.com

FAQ

What was announced by X4 Pharmaceuticals on September 30, 2021?

X4 Pharmaceuticals announced inducement awards to new employees under its 2019 Inducement Equity Incentive Plan, consisting of stock options and restricted stock units.

What are the terms of the inducement awards granted by X4 Pharmaceuticals?

The inducement awards include options for 95,200 shares vesting over four years and restricted stock units for 6,000 shares, also vesting annually over four years.

What is the exercise price for the stock options granted by X4 Pharmaceuticals?

The exercise price for the stock options is $5.29 per share, equal to the closing price on the grant date.

How does X4 Pharmaceuticals' inducement awards impact employees?

The inducement awards are contingent on employees' continued employment, incentivizing retention and performance.

Is the issuance of inducement awards a positive sign for X4 Pharmaceuticals?

The inducement awards indicate a focus on talent acquisition but may also reflect recruitment challenges.