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

Rhea-AI Summary

Zentalis Pharmaceuticals (Nasdaq: ZNTL) announced that on July 1, 2024, its Board of Directors' Compensation Committee granted non-qualified stock options to purchase a total of 40,875 shares of the company's common stock to five new employees. These grants fall under the 2022 Employment Inducement Incentive Award Plan, designed to attract new hires. The options have an exercise price of $4.19 per share, equal to the closing price of Zentalis' common stock on the grant date. The options have a 10-year term and will vest over four years: 25% on the first anniversary of the vesting commencement date, with the remaining 75% vesting in equal monthly installments over the next three years. Continued employment is required for vesting.

Positive

• Granting of 40,875 stock options to new employees underlines Zentalis' commitment to attracting high-caliber talent.
• Stock options have a 10-year term, suggesting a long-term incentive for employee retention.
• The exercise price of $4.19 aligns with the market value, indicating market-consistent compensation.

Negative

• Stock options are contingent upon continued employment, which may lead to employee turnover if not managed well.

SAN DIEGO, July 01, 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 July 1, 2024, the Compensation Committee of Zentalis’ Board of Directors granted non-qualified stock options to purchase an aggregate of 40,875 shares of the Company’s common stock to five 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 $4.19 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 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 did Zentalis Pharmaceuticals announce on July 1, 2024?

Zentalis Pharmaceuticals announced the granting of non-qualified stock options for 40,875 shares to five new employees under its 2022 Employment Inducement Incentive Award Plan.

What is the exercise price of the stock options granted by Zentalis (ZNTL)?

The exercise price of the stock options is $4.19 per share, which was the closing price of Zentalis' common stock on the grant date.

When will the stock options granted by Zentalis (ZNTL) vest?

The stock options will vest over four years: 25% on the first anniversary of the vesting commencement date, and the remaining 75% in equal monthly installments over the next three years.

What is the term of the stock options granted to new Zentalis (ZNTL) employees?

The stock options have a term of 10 years.

Under which plan were the stock options granted by Zentalis (ZNTL)?

The stock options were granted under the Zentalis Pharmaceuticals 2022 Employment Inducement Incentive Award Plan.