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

Rhea-AI Summary

Zentalis Pharmaceuticals announced on June 3, 2024, that its Compensation Committee granted new employees non-qualified stock options to purchase 20,000 shares under the 2022 Inducement Plan, adhering to Nasdaq Listing Rule 5635(c)(4). The exercise price is $11.40 per share, matching the closing price on the grant date. These options will vest over four years, with 25% vesting after one year and the rest monthly over the subsequent three years. The 2022 Inducement Plan aims to attract individuals new to Zentalis, promoting their long-term commitment to the company.

Positive

• Granted stock options serve as an incentives to attract new talent.
• Exercise price of $11.40 per share aligns with market value on the grant date.
• Stock options have a long-term vesting period, promoting employee retention.

Negative

• Stock options granted dilute existing shareholders' equity.
• Long vesting period may delay immediate impact on employee performance.
• Potential fluctuation in stock price can affect perceived value of options.

NEW YORK & SAN DIEGO, June 03, 2024 (GLOBE NEWSWIRE) -- Zentalis^® Pharmaceuticals, Inc. (Nasdaq: ZNTL), a clinical-stage biopharmaceutical company discovering and developing clinically differentiated small molecule therapeutics targeting fundamental biological pathways of cancers, today announced that on June 3, 2024, the Compensation Committee of Zentalis’ Board of Directors granted non-qualified stock options to purchase an aggregate of 20,000 shares of the Company’s common stock to two newly hired employees. The stock options were granted under the Zentalis Pharmaceuticals, Inc. 2022 Employment Inducement Incentive Award Plan (2022 Inducement Plan) as an inducement material to each such individual’s entering into employment with Zentalis in accordance with Nasdaq Listing Rule 5635(c)(4).

The 2022 Inducement Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of Zentalis, or following a bona fide period of non-employment, as an inducement material to each such individual’s entering into employment with Zentalis, pursuant to Nasdaq Listing Rule 5635(c)(4).

The stock options have an exercise price of $11.40 per share, which is equal to the closing price of Zentalis’ common stock on The Nasdaq Global Market on the date of grant. The stock options have a 10-year term and will vest over four years, with 25% of the options vesting on the first anniversary of the vesting commencement date and the remaining 75% of the options vesting in equal monthly installments over the three years thereafter.

Vesting of the stock options is subject to the employee’s continued service to Zentalis on each vesting date.

About Zentalis Pharmaceuticals

Zentalis^® Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company discovering and developing clinically differentiated small molecule therapeutics targeting fundamental biological pathways of cancers. The Company’s lead product candidate, azenosertib (ZN-c3), is a potentially first-in-class and best-in-class WEE1 inhibitor for advanced solid tumors and hematologic malignancies. Azenosertib is being evaluated as a monotherapy and in combination across multiple clinical trials and has broad franchise potential. In clinical trials, azenosertib has been well tolerated and has demonstrated anti-tumor activity as a single agent across multiple tumor types and in combination with several chemotherapy backbones. As part of its azenosertib clinical development program, the Company is exploring enrichment strategies targeting tumors of high genomic instability, such as Cyclin E1 positive tumors, homologous recombination deficient tumors and tumors with oncogenic driver mutations. The Company is also leveraging its extensive experience and capabilities across cancer biology and medicinal chemistry to advance its research on protein degraders. Zentalis has operations in both New York and San Diego.

For more information, please visit www.zentalis.com. Follow Zentalis on Twitter at @ZentalisP and on LinkedIn at www.linkedin.com/company/zentalis-pharmaceuticals.

ZENTALIS® and its associated logo are trademarks of Zentalis and/or its affiliates. All website addresses and other links in this press release are for information only and are not intended to be an active link or to incorporate any website or other information into this press release.

Contacts:

Elizabeth Hickin
Vice President, Investor Relations
ehickin@zentalis.com

FAQ

What are the details of the stock options granted by Zentalis Pharmaceuticals on June 3, 2024?

Zentalis Pharmaceuticals granted non-qualified stock options to purchase 20,000 shares at $11.40 per share. These options vest over four years.

What is the exercise price of the Zentalis Pharmaceuticals stock options issued under the 2022 Inducement Plan?

The exercise price is $11.40 per share, equivalent to the closing price on the grant date.

How long is the vesting period for the Zentalis Pharmaceuticals stock options granted on June 3, 2024?

The vesting period is four years: 25% after one year, with the remainder vesting monthly over the next three years.

What is the purpose of Zentalis Pharmaceuticals' 2022 Inducement Plan?

The plan aims to grant equity awards to new employees as an incentive to join and stay with Zentalis Pharmaceuticals.