Avadel Announces Grant of Inducement Awards Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Avadel Pharmaceuticals (Nasdaq: AVDL) announced that its Compensation Committee has approved inducement awards for five new employees. The awards consist of non-statutory options to purchase 173,000 ordinary shares under the company's 2021 Inducement Plan, granted in accordance with Nasdaq Listing Rule 5635(c)(4).

The options feature a ten-year term and a four-year vesting schedule, with 25% vesting on the first anniversary of each employee's start date and additional 25% portions vesting on subsequent anniversaries through the fourth year. These grants are governed by Avadel's 2021 Inducement Plan, which was approved by the Board of Directors in November 2021.

Positive

• Expansion of workforce with five new strategic hires
• Implementation of long-term employee retention strategy through 4-year vesting schedule

Negative

• Potential dilution of existing shareholders through 173,000 new share options

News Market Reaction

-0.71%

1 alert

-0.71% News Effect

On the day this news was published, AVDL declined 0.71%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

DUBLIN, Feb. 20, 2025 (GLOBE NEWSWIRE) -- Avadel Pharmaceuticals plc (Nasdaq: AVDL), a company focused on transforming medicines to transform lives, today announced that the Compensation Committee of Avadel’s Board of Directors approved the grant of non-statutory options to five (5) new employees to purchase 173,000 ordinary shares under Avadel’s 2021 Inducement Plan. The awards were granted as an inducement material to the employee’s acceptance of employment with Avadel in accordance with Nasdaq Listing Rule 5635(c)(4). The options have a ten-year term and vest over four years, with 25% vesting on the one-year anniversary of each new employee’s respective start date and 25% vesting on the second, third, and fourth anniversary thereafter. The options are subject to the terms and conditions of Avadel’s 2021 Inducement Plan approved by the Board of Directors in November 2021 and the terms and conditions of award agreements covering the grants.

About Avadel Pharmaceuticals plc

Avadel Pharmaceuticals plc (Nasdaq: AVDL) is a biopharmaceutical company focused on transforming medicines to transform lives. Our approach includes applying innovative solutions to the development of medications that address the challenges patients face with current treatment options. Avadel’s commercial product, LUMRYZ™, was approved by the U.S. Food & Drug Administration (FDA) as the first and only once-at-bedtime oxybate for the treatment of cataplexy or excessive daytime sleepiness (EDS) in patients 7 years and older with narcolepsy. For more information, please visit www.avadel.com. 

Investor Contact:
Austin Murtagh
Precision AQ
Austin.Murtagh@precisionaq.com
(212) 698-8696

Media Contact:
Lesley Stanley
Real Chemistry
lestanley@realchemistry.com
(609) 273-3162

FAQ

How many shares are included in AVDL's latest inducement awards?

Avadel's latest inducement awards include options to purchase 173,000 ordinary shares granted to five new employees.

What is the vesting schedule for AVDL's February 2025 inducement options?

The options vest over four years, with 25% vesting on the first anniversary of each employee's start date and additional 25% vesting on the second, third, and fourth anniversaries.

How long is the term of AVDL's February 2025 inducement options?

The options have a ten-year term.

Under which plan were AVDL's February 2025 inducement awards granted?

The awards were granted under Avadel's 2021 Inducement Plan, which was approved by the Board of Directors in November 2021.