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

Rhea-AI Summary

X4 Pharmaceuticals (Nasdaq: XFOR), a company focused on improving lives of people with rare immune system diseases, has announced the issuance of inducement awards to new employees under its 2019 Inducement Equity Incentive Plan. The awards, approved by X4's Compensation Committee, consist of options to purchase 708,236 shares of X4's common stock. These options have a ten-year term and an exercise price of $0.8001 per share, equal to the closing price on July 31, 2024. The options will vest over four years, with 25% vesting after 12 months and the remainder vesting monthly over the following 36 months, subject to continued employment. This grant aligns with Nasdaq Listing Rule 5635(c)(4) for inducement material to new employees.

Positive

• Attraction of new talent through equity incentives
• Alignment of employee interests with company growth through stock options

Negative

• Potential dilution of existing shareholders' equity
• Low stock price of $0.8001 per share may indicate market challenges

News Market Reaction

-11.16%

1 alert

-11.16% News Effect

On the day this news was published, XFOR declined 11.16%, reflecting a significant negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

BOSTON, Aug. 01, 2024 (GLOBE NEWSWIRE) -- X4 Pharmaceuticals (Nasdaq: XFOR), a company driven to improve the lives of people with rare diseases of the immune system, today announced that, effective on July 31, 2024, the company 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 708,236 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) and were approved by X4’s Compensation Committee of the Board of Directors.

The options have a ten-year term and an exercise price of $0.8001 per share, which is equal to the closing price of X4’s common stock on July 31, 2024. 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.

About X4 Pharmaceuticals
X4 is delivering progress for patients by developing and commercializing innovative therapies for those with rare diseases of the immune system and significant unmet needs. Leveraging our expertise in CXCR4 and immune system biology, we have successfully developed mavorixafor, which has received U.S. approval as XOLREMDI™ (mavorixafor) capsules in its first indication. We are also evaluating the use of mavorixafor in additional potential indications. X4 corporate headquarters are in Boston, Massachusetts and our research center of excellence is in Vienna, Austria. For more information, please visit our website at www.x4pharma.com.

Company Contact:
José Juves
Head of Corporate & Patient Affairs
jose.juves@x4pharma.com

Investor Contact:
Daniel Ferry
Managing Director, LifeSci Advisors
daniel@lifesciadvisors.com
(617) 430-7576

FAQ

How many shares of X4 Pharmaceuticals (XFOR) were granted as inducement awards?

X4 Pharmaceuticals granted options to purchase 708,236 shares of its common stock as inducement awards to new employees.

What is the exercise price of the stock options granted by X4 Pharmaceuticals (XFOR) on July 31, 2024?

The exercise price of the stock options granted is $0.8001 per share, equal to the closing price of X4's common stock on July 31, 2024.

What is the vesting schedule for the inducement stock options issued by X4 Pharmaceuticals (XFOR)?

The options vest over a four-year period, with 25% vesting after 12 months and the remaining shares vesting monthly over the following 36 months, subject to continued employment.

Under which plan did X4 Pharmaceuticals (XFOR) issue these inducement awards?

The inducement awards were issued under the X4 Pharmaceuticals, Inc. 2019 Inducement Equity Incentive Plan.