Cidara Therapeutics Reports Inducement Grant Under Nasdaq Listing Rule 5635(C)(4)

Rhea-AI Summary

Cidara Therapeutics (CDTX), a biotechnology company, announced the granting of a non-qualified stock option award and restricted stock units (RSUs) to Dipesh Bhatt, a new employee, under its 2020 Inducement Incentive Plan. The award includes 1,110 shares of common stock with an exercise price of $10.75 per share, matching the stock's closing price on September 30, 2024. The stock options will vest over four years, with 25% vesting after one year and the remainder vesting monthly over the next three years. RSUs vest annually over four years. The award is given under Nasdaq Listing Rule 5635(c)(4) as an inducement for Bhatt's employment. Additionally, Cidara corrected an earlier press release, clarifying that 81,000 shares, not 71,000, were granted to Jim Beitel in a previous inducement award.

Positive

• New stock option and RSU grants to key employees could incentivize performance.
• Correction of previous stock grant error shows commitment to transparency.

Negative

• No direct impact on revenue or profitability disclosed in the announcement.

News Market Reaction

+2.11%

1 alert

+2.11% News Effect

On the day this news was published, CDTX gained 2.11%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SAN DIEGO, Oct. 04, 2024 (GLOBE NEWSWIRE) -- Cidara Therapeutics, Inc. (Nasdaq: CDTX), a biotechnology company using its proprietary Cloudbreak® platform to develop drug-Fc conjugate (DFC) immunotherapies designed to save lives and improve the standard of care for patients facing serious diseases, today announced that the Compensation Committee of its Board of Directors (Compensation Committee) granted Dipesh Bhatt, a new employee, a non-qualified stock option award and restricted stock units (RSUs) for an aggregate of 1,110 shares of its common stock, pursuant to the Cidara Therapeutics, Inc. 2020 Inducement Incentive Plan, as amended (the Inducement Plan), with a grant date of September 30, 2024. The stock option has an exercise price of $10.75 per share, which is equal to the closing price of Cidara’s common stock on the grant date. The shares subject to the option will vest over four years, with 25% of the shares vesting on the one-year anniversary of the vesting commencement date and the balance of the shares vesting in a series of 36 successive equal monthly installments thereafter. All RSUs vest in four equal annual installments, with 1/4 vesting on each of the first, second, third and fourth anniversaries of the Quarterly Vesting Date (as defined below) that occurs during the calendar quarter that includes the date of grant. “Quarterly Vesting Date” means March 10, June 10, September 10 or December 10. The awards are subject to the award holder’s continuous service through each vesting date and to the terms and conditions of the Inducement Plan and the standard forms of grant agreements thereunder.

The foregoing equity award was granted as an inducement material to the employee entering into employment with Cidara, in accordance with Nasdaq Listing Rule 5635(c)(4). The Inducement Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of Cidara, or following a bona fide period of non-employment, as an inducement material to such individual’s entering into employment with Cidara, pursuant to Nasdaq Listing Rule 5635(c)(4).

Correction of Press Release issued August 19, 2024

In Cidara’s press release issued on August 19, 2024, due to an administrative error, Cidara incorrectly announced that the Compensation Committee granted to Jim Beitel, MBA a non-qualified stock option award and RSUs for an aggregate of 71,000 shares of its common stock pursuant to the Inducement Plan. However, the total number of shares of Cidara’s common stock underlying such non-qualified stock option award and RSUs is 81,000 shares.

About Cidara Therapeutics

Cidara Therapeutics is using its proprietary Cloudbreak^® platform to develop novel drug-Fc conjugates (DFCs) comprising targeted small molecules or peptides coupled to a proprietary human antibody fragment (Fc). Cidara’s lead DFC candidate, CD388, is a long-acting antiviral designed to achieve universal prevention of seasonal and pandemic influenza with a single dose by directly inhibiting viral proliferation. In June 2023, CD388 was granted Fast Track Designation by the U.S. Food and Drug Administration (FDA), and the Company announced initiation of a Phase 2b trial in September 2024. Additional DFCs have been developed for oncology and in July 2024 Cidara received IND clearance for CBO421 which is intended to target CD73 in solid tumors. Cidara is headquartered in San Diego, California. For more information, please visit www.cidara.com.

INVESTOR CONTACT:
Brian Ritchie
LifeSci Advisors
(212) 915-2578
britchie@lifesciadvisors.com

MEDIA CONTACT:
Michael Fitzhugh
LifeSci Communications
mfitzhugh@lifescicomms.com

FAQ

What stock options and RSUs were granted to Dipesh Bhatt by Cidara Therapeutics?

Cidara Therapeutics granted Dipesh Bhatt a non-qualified stock option award and RSUs for an aggregate of 1,110 shares of common stock.

What is the exercise price of the stock options granted to Dipesh Bhatt by Cidara Therapeutics?

The exercise price of the stock options is $10.75 per share.

When will the stock options granted by Cidara Therapeutics vest?

The stock options will vest over four years, with 25% vesting on the one-year anniversary and the remaining shares vesting monthly over the next three years.

How will the RSUs granted by Cidara Therapeutics vest?

The RSUs will vest in four equal annual installments, with 1/4 vesting on each of the first, second, third, and fourth anniversaries of the Quarterly Vesting Date.

What correction did Cidara Therapeutics make regarding the August 19, 2024 press release?

Cidara corrected the number of shares granted to Jim Beitel from 71,000 to 81,000 shares.