ALX Oncology Reports Inducement Grant as permitted by the Nasdaq Listing Rules

Rhea-AI Summary

ALX Oncology Holdings (Nasdaq: ALXO) announced that its Compensation Committee granted an inducement stock option to purchase 600,000 shares of common stock to new Chief Financial Officer Harish Shantharam, effective January 21, 2025. The stock option, granted under the company's 2025 Inducement Equity Incentive Plan, has an exercise price of $1.65 per share, matching the closing price on the grant date.

The vesting schedule includes 25% of shares vesting after one year from the grant date, with the remaining shares vesting monthly at one forty-eighth of the total over the following three years, contingent on continued employment. The grant was made as a material inducement for employment in accordance with Nasdaq Listing Rule 5635(c)(4).

Positive

• Successful recruitment of new Chief Financial Officer
• Stock options align executive interests with shareholders

Negative

• Potential future dilution from 600,000 shares of stock options
• Low stock price of $1.65 indicates challenging market conditions

SOUTH SAN FRANCISCO, Calif., Jan. 22, 2025 (GLOBE NEWSWIRE) -- ALX Oncology Holdings, Inc. (“ALX Oncology” or the “Company”), (Nasdaq: ALXO), a clinical-stage biotechnology company advancing therapies that boost the immune system to treat cancer and extend patients’ lives, today announced that effective January 21, 2025, the Compensation Committee of the Board of Directors of ALX Oncology granted an inducement stock option to purchase a total of 600,000 shares of ALX Oncology’s common stock to Harish Shantharam, the Company’s Chief Financial Officer, in connection with the commencement of his employment. Mr. Shantharam’s inducement stock option is subject to the terms of the ALX Oncology Holdings Inc. 2025 Inducement Equity Incentive Plan and related forms of agreements, and were granted as inducements material to Mr. Shantharam to enter into employment with ALX Oncology in accordance with Nasdaq Listing Rule 5635(c)(4).

The inducement stock option has an exercise price of $1.65 per share, which is equal to the closing price of a share of ALX Oncology common stock on the grant date, and shall vest as follows: 25% of the shares subject to such inducement stock option shall vest on the one year anniversary of January 21, 2025 and an additional one forty-eighth of the shares subject to such inducement stock option shall vest monthly thereafter, subject to the employee’s continued service.

About ALX Oncology
ALX Oncology (Nasdaq: ALXO) is a clinical-stage biotechnology company advancing therapies that boost the immune system to treat cancer and extend patients’ lives. ALX Oncology’s lead therapeutic candidate, evorpacept, has demonstrated potential to serve as a cornerstone therapy upon which the future of immuno-oncology can be built. Evorpacept is currently being evaluated across multiple ongoing clinical trials in a wide range of cancer indications. More information is available at www.alxoncology.com and on LinkedIn @ALX Oncology.

Company Contact:
Allison Dillon, Chief Business Officer, ALX Oncology
ir@alxoncology.com 

Media Contact:
Audra Friis, Sam Brown, Inc.
audrafriis@sambrown.com 
(917) 519-9577

FAQ

What is the exercise price of ALXO's new stock option grant to CFO Harish Shantharam?

The exercise price of the stock option grant is $1.65 per share, equal to ALX Oncology's closing price on January 21, 2025.

How many shares were included in ALXO's January 2025 inducement grant?

The inducement grant includes stock options to purchase 600,000 shares of ALX Oncology's common stock.

What is the vesting schedule for ALXO's January 2025 CFO stock option grant?

25% of the shares vest after one year, with the remaining shares vesting monthly at 1/48th over the following three years, subject to continued employment.

Under which plan were ALXO's January 2025 inducement options granted?

The options were granted under the ALX Oncology Holdings Inc. 2025 Inducement Equity Incentive Plan.