Adverum Biotechnologies Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Adverum Biotechnologies (Nasdaq: ADVM) announced on September 5, 2024, that its Compensation Committee granted inducement awards to three new employees on September 3, 2024. The awards, granted under Adverum's 2017 Inducement Plan, include:

1. Non-qualified stock options to purchase 12,660 shares of common stock
2. Restricted stock units (RSUs) for 6,330 shares of common stock

The stock options have an exercise price of $6.76 per share, based on Adverum's closing price on September 3. They vest over four years, with 25% vesting after one year and the remainder monthly over 36 months. The RSUs vest over three years, with 33 1/3% vesting annually. Both are subject to continued employment and the terms of the 2017 Inducement Plan and award agreements.

Positive

• Adverum is attracting new talent by offering competitive stock-based compensation
• The company's stock price was $6.76 as of September 3, 2024

Negative

• The inducement grants may lead to potential dilution for existing shareholders

REDWOOD CITY, Calif., Sept. 05, 2024 (GLOBE NEWSWIRE) -- Adverum Biotechnologies, Inc. (Nasdaq: ADVM) today announced that on September 3, 2024, the Compensation Committee of Adverum’s Board of Directors granted inducement awards consisting of non-qualified stock options to purchase 12,660 shares of common stock and restricted stock units (RSUs) for 6,330 shares of common stock to 3 new employees under Adverum’s 2017 Inducement Plan. The Compensation Committee of Adverum’s Board of Directors approved the awards as an inducement material to the new employees’ employment in accordance with Nasdaq Listing Rule 5635(c)(4).

Each stock option has an exercise price per share equal to $6.76 per share, Adverum’s closing trading price on September 3, 2024, and will vest over four years, with 25% of the underlying shares vesting on the first anniversary of the applicable vesting commencement date and, 1/48th of the balance of the underlying shares vesting monthly thereafter over 36 months, subject to the new employee’s continued service relationship with Adverum through the applicable vesting dates. Each of the RSUs will vest over three years, with 33 1/3% of the underlying shares vesting on each anniversary of September 3, subject to the new employee’s continued service relationship with Adverum through the applicable vesting dates. The awards are subject to the terms and conditions of Adverum’s 2017 Inducement Plan and the terms and conditions of an applicable award agreement covering the grant.

About Adverum Biotechnologies

Adverum Biotechnologies (NASDAQ: ADVM) is a clinical-stage company that aims to establish gene therapy as a new standard of care for highly prevalent ocular diseases with the aspiration of developing functional cures to restore vision and prevent blindness. Leveraging the capabilities of its proprietary intravitreal (IVT) platform, Adverum is developing durable, single-administration therapies, designed to be delivered in physicians’ offices, to eliminate the need for frequent ocular injections to treat these diseases. Adverum is evaluating its novel gene therapy candidate, ixoberogene soroparvovec (Ixo-vec, formerly referred to as ADVM-022), as a one-time, IVT injection for patients with neovascular or wet age-related macular degeneration. Additionally, by overcoming the challenges associated with current treatment paradigms for debilitating ocular diseases, Adverum aspires to transform the standard of care, preserve vision, and create a profound societal impact around the globe. For more information, please visit www.adverum.com.

Inquiries:

Adverum Investor Relations

Email: ir@adverum.com

FAQ

What inducement awards did Adverum Biotechnologies (ADVM) grant to new employees on September 3, 2024?

Adverum Biotechnologies granted non-qualified stock options to purchase 12,660 shares of common stock and restricted stock units (RSUs) for 6,330 shares of common stock to three new employees.

What is the exercise price of the stock options granted by Adverum Biotechnologies (ADVM) on September 3, 2024?

The exercise price of the stock options is $6.76 per share, which was Adverum's closing trading price on September 3, 2024.

How do the stock options and RSUs vest for the new employees of Adverum Biotechnologies (ADVM)?

The stock options vest over four years, with 25% vesting after one year and the remainder monthly over 36 months. The RSUs vest over three years, with 33 1/3% vesting annually.

Under which plan were the inducement awards granted by Adverum Biotechnologies (ADVM)?

The inducement awards were granted under Adverum's 2017 Inducement Plan.