Zapata Computing Holdings Inc. Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Zapata Computing Holdings, trading as ZPTA on Nasdaq, announced an inducement grant of a nonstatutory stock option to Sumit Kapur, the new Chief Financial Officer and Vice President of Finance. Kapur's grant includes the option to purchase 600,000 shares at $1.23 per share, the closing price on May 13, 2024. The vesting schedule will see 25% of shares vest on the first anniversary, and the remaining 75% in equal monthly increments over three years, contingent on continued employment. The grant is a key component of Kapur's compensation and was approved by the Board's Compensation Committee under Nasdaq Rule 5635(c)(4). Kapur's role as CFO begins May 20, 2024.

Positive

• Zapata AI secured a new CFO, Sumit Kapur, potentially strengthening its financial leadership.
• The stock option grant aligns Kapur's interests with shareholder value, potentially driving better company performance.
• The inducement grant of 600,000 shares at $1.23 per share reflects a commitment to long-term growth.

Negative

• Future vesting of the shares is contingent on continued employment, posing a potential risk if Kapur leaves.
• Granting 600,000 shares could lead to stock dilution, affecting existing shareholders.

BOSTON, May 13, 2024 (GLOBE NEWSWIRE) -- Zapata Computing Holdings Inc. (“Zapata AI” or the “Company”) (Nasdaq: ZPTA), the Industrial Generative AI company, today announced that the Compensation Committee of Zapata AI’s Board of Directors has approved an inducement grant of a nonstatutory stock option to Sumit Kapur to purchase 600,000 shares of Zapata AI’s common stock with an exercise price of $ 1.23 per share, the closing price of Zapata AI’ common stock on May 13, 2024. As previously announced, Mr. Kapur, will serve as Zapata AI’s Chief Financial Officer, effective May 20, 2024, and as Zapata AI’s Vice President, Finance during a short transition period, effective today. The option will vest as to 25% of the underlying shares on the first anniversary of the date of grant and the remaining 75% of the underlying shares will vest in 36 substantially equal monthly increments thereafter, subject to Mr. Kapur’s continued employment on each vesting date. The option is subject to the terms and conditions of Zapata AI’s 2024 Equity and Incentive Plan and the respective terms and conditions of the nonstatutory stock option agreement covering the award, but was granted outside of the 2024 Equity and Incentive Plan.

The grant was made as an inducement that was a material component of Mr. Kapur’s compensation and subsequent acceptance of employment with Zapata AI and was granted as an employment inducement award pursuant to Nasdaq Listing Rule 5635(c)(4) approved by Zapata AI 's Compensation Committee.

About Zapata AI

Zapata AI is an Industrial Generative AI company, revolutionizing how enterprises solve complex operational challenges with its powerful suite of generative AI software applications and cutting-edge reference architecture. By combining numerical and text-based generative AI models and custom software applications to power industrial-scale solutions, Zapata AI enables enterprises and government entities to drive growth, cost savings through operational efficiencies, and critical operational insights. With its proprietary data science and engineering techniques, and the Orquestra® platform, Zapata AI is accelerating Generative AI’s impact across industries by delivering solutions which are higher performing, less costly, and more accurate and expressive than current, classical approaches to AI. The Company was founded in 2017 and is headquartered in Boston, Massachusetts.

Contacts:

Media: press@zapata.ai

Investors: investors@zapata.ai

FAQ

What is the stock symbol for Zapata Computing Holdings?

The stock symbol for Zapata Computing Holdings is ZPTA.

Who is the new CFO of Zapata Computing Holdings?

Sumit Kapur has been appointed as the new Chief Financial Officer of Zapata Computing Holdings.

When will Sumit Kapur start his role as CFO at Zapata Computing Holdings?

Sumit Kapur will begin his role as CFO on May 20, 2024.

How many shares is Sumit Kapur entitled to purchase under his stock option grant?

Sumit Kapur is entitled to purchase 600,000 shares under his stock option grant.

What is the exercise price of Sumit Kapur's stock option?

The exercise price of Sumit Kapur's stock option is $1.23 per share.

What is the vesting schedule for Sumit Kapur's stock option grant?

25% of the stock option will vest on the first anniversary, with the remaining 75% vesting in equal monthly increments over the next three years.

Under which Nasdaq rule was the stock option inducement grant given?

The stock option inducement grant was given under Nasdaq Listing Rule 5635(c)(4).