Chimerix Reports Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Chimerix (NASDAQ:CMRX), a biopharmaceutical company, announced on August 30, 2024, that its Compensation Committee granted an inducement award to a new employee. The award consists of non-statutory stock options to purchase up to 150,000 shares of Chimerix's common stock. The stock options have a 10-year term and will vest over four years, with one-fourth vesting on the one-year anniversary of hire and the remaining three-fourths vesting monthly over the following three years. The exercise price is equal to Chimerix's closing trading price on the grant date. This award was approved in accordance with Nasdaq Listing rule 5635(c)(4) and is subject to the terms of Chimerix's 2024 Equity Incentive Plan, although granted outside of it.

Positive

• Attraction of new talent with stock options as incentive
• Alignment of employee interests with company performance through equity grants

Negative

• Potential dilution of existing shareholders' equity

DURHAM, N.C., Aug. 30, 2024 (GLOBE NEWSWIRE) -- Chimerix (NASDAQ:CMRX), today announced that on August 20, 2024, the Compensation Committee of Chimerix’s Board of Directors granted an inducement award to a new employee of non-statutory stock options to purchase up to a total of 150,000 shares of Chimerix’s common stock. The Compensation Committee of Chimerix’s Board of Directors approved the award as an inducement material to the new employee’s employment in accordance with Nasdaq Listing rule 5635(c)(4).

The stock options have an exercise price per share equal to Chimerix’s closing trading price as of the grant date. The stock options have a 10-year term and will vest over four years, with one-fourth vesting on the one-year anniversary of the date of hire and the remaining three-fourths vesting over the following three years in equal monthly installments. The stock options are subject to the terms of Chimerix’s 2024 Equity Incentive Plan but were granted outside of the 2024 Equity Incentive Plan.

Chimerix is a biopharmaceutical company with a mission to develop medicines that meaningfully improve and extend the lives of patients facing deadly diseases. The Company’s most advanced clinical-stage development program, ONC201, is in development for H3 K27M-mutant glioma. The Company is conducting Phase 1 dose escalation studies of ONC206 to evaluate safety and PK data.

CONTACTS:      
Will O’Connor
Stern Investor Relations
212-362-1200
ir@chimerix.com
will@sternir.com

FAQ

How many shares of Chimerix (CMRX) stock options were granted to the new employee?

The new employee was granted non-statutory stock options to purchase up to 150,000 shares of Chimerix's common stock.

What is the vesting schedule for the stock options granted by Chimerix (CMRX) on August 20, 2024?

The stock options will vest over four years, with one-fourth vesting on the one-year anniversary of the date of hire and the remaining three-fourths vesting over the following three years in equal monthly installments.

What is the exercise price of the stock options granted by Chimerix (CMRX)?

The stock options have an exercise price per share equal to Chimerix's closing trading price as of the grant date, August 20, 2024.

Under which Nasdaq rule did Chimerix (CMRX) grant the inducement award?

The inducement award was granted in accordance with Nasdaq Listing rule 5635(c)(4).