CervoMed Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

CervoMed Inc. (NASDAQ: CRVO), a clinical stage company focused on developing treatments for age-related neurologic disorders, has granted equity awards to two new employees. The company awarded options to purchase a total of 14,753 shares of common stock, with an exercise price of $11.91 per share, matching the closing price on December 6, 2024. These options will vest over three years in 36 equal monthly installments, contingent on continued employment. The grants were approved by the Compensation Committee as inducement awards under Nasdaq Listing Rule 5635(c)(4).

Positive

• Stock options granted align employee interests with shareholders
• Exercise price set at market value ($11.91) prevents immediate dilution

Negative

• Potential future dilution of 14,753 shares for existing shareholders

BOSTON, Dec. 12, 2024 (GLOBE NEWSWIRE) -- CervoMed Inc. (NASDAQ: CRVO) (the “Company”), a clinical stage company focused on developing treatments for age-related neurologic disorders, today announced that it has granted equity awards as a material inducement to the employment of two new employees.

On December 6, 2024, the Company granted options to purchase an aggregate of 14,753 shares of common stock to two new employees. Each option has an exercise price of $11.91, the closing price of the Company’s common stock on the grant date, and each will vest in 36 equal installments on the last day of each month over a three-year period, subject to the employee’s continued employment with the Company on each such date. The awards were approved by the Compensation Committee of the Company’s Board of Directors as an inducement material to each new employee entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).

About CervoMed
CervoMed Inc. is a clinical-stage company focused on developing treatments for age-related neurologic disorders. The Company is currently developing neflamapimod, an investigational, orally administered small molecule brain penetrant designed to inhibit p38 mitogen-activated protein kinase alpha. Neflamapimod has the potential to treat synaptic dysfunction, the reversible aspect of the underlying neurodegenerative processes that causes disease in certain other major neurological disorders.

Forward-Looking Statements
This press release includes express and implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, regarding the intentions, plans, beliefs, expectations or forecasts for the future of the Company, including, but not limited to, the therapeutic potential of neflamapimod. Terms such as “believes,” “estimates,” “anticipates,” “expects,” “plans,” “aims,” “seeks,” “intends,” “may,” “might,” “could,” “might,” “will,” “should,” “approximately,” “potential,” “target,” “project,” “contemplate,” “predict,” “forecast,” “continue,” or other words that convey uncertainty of future events or outcomes (including the negative of these terms) may identify these forward-looking statements. Although there is believed to be reasonable basis for each forward-looking statement contained herein, forward-looking statements by their nature involve risks and uncertainties, known and unknown, many of which are beyond the Company’s control and, as a result, actual results could differ materially from those expressed or implied in any forward-looking statement. Particular risks and uncertainties include, among other things, those related to: the Company’s available cash resources and the availability of additional funds on acceptable terms; the results of the Company’s clinical trials, including RewinD-LB; the likelihood and timing of any regulatory approval of neflamapimod or the nature of any feedback the Company may receive from the U.S. Food and Drug Administration; the ability to implement business plans, forecasts, and other expectations in the future; general economic, political, business, industry, and market conditions, inflationary pressures, and geopolitical conflicts; and the other factors discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (SEC) on March 29, 2024, and other filings that the Company may file from time to time with the SEC. Any forward-looking statements in this press release speak only as of the date hereof (or such earlier date as may be identified). The Company does not undertake any obligation to update such forward-looking statements to reflect events or circumstances after the date of this press release, except to the extent required by law.

Investor Contact:
PJ Kelleher
LifeSci Advisors
Investors@cervomed.com
617-430-7579

FAQ

How many shares were granted in CervoMed's (CRVO) December 2024 inducement awards?

CervoMed granted options to purchase 14,753 shares of common stock to two new employees.

What is the exercise price for CRVO's December 2024 inducement stock options?

The exercise price for the stock options is $11.91, which was the closing price of CervoMed's stock on December 6, 2024.

What is the vesting schedule for CRVO's December 2024 inducement grants?

The options vest over a three-year period in 36 equal monthly installments, subject to continued employment.

Under which Nasdaq rule were CRVO's December 2024 inducement grants approved?

The inducement grants were approved under Nasdaq Listing Rule 5635(c)(4).