89bio Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

89bio (ETNB) announced the approval of inducement grants for three new employees by its Board's Compensation Committee. The grants, issued under the 2023 Inducement Plan, consist of non-qualified stock options to purchase 61,100 shares of common stock. Granted on June 3, 2025, these options have an exercise price equal to the closing price on the grant date. The options follow a four-year vesting schedule: 25% vests after one year, with the remaining 75% vesting in 12 equal quarterly installments, contingent on continued employment. These grants were made as material inducements for employment in accordance with Nasdaq Listing Rule 5635(c)(4).

Positive

• Attraction of new talent through equity compensation
• Structured vesting schedule promotes employee retention

Negative

• Potential dilution of existing shareholders
• Future stock-based compensation expense impact on financial statements

SAN FRANCISCO, June 06, 2025 (GLOBE NEWSWIRE) -- 89bio, Inc. (the “Company” or “89bio”) (Nasdaq: ETNB), a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapies for the treatment of liver and cardiometabolic diseases, today announced that the Compensation Committee of the Company’s Board of Directors approved the grant of non-qualified stock options to purchase an aggregate of 61,100 shares of the Company’s common stock to three new employees (the “Inducement Grants”) on June 3, 2025 (the “Grant Date”). The Inducement Grants have been granted pursuant to the Company’s 2023 Inducement Plan (the “Plan”). The Inducement Grants were granted as an inducement material to these individuals entering into employment with 89bio in accordance with Nasdaq Listing Rule 5635(c)(4).

The Inducement Grants have an exercise price per share that is equal to the closing price of 89bio’s common stock on the Grant Date. The Inducement Grants will vest over a four-year period, with 25% of the shares vesting on the one-year anniversary of the employee’s start date, and thereafter the remainder of the shares vest in 12 equal quarterly installments, subject to each employee’s continued employment with 89bio through the applicable vesting dates.

About 89bio
89bio is a clinical-stage biopharmaceutical company dedicated to the development of best-in-class therapies for patients with liver and cardiometabolic diseases who lack optimal treatment options. The company is focused on rapidly advancing its lead candidate, pegozafermin, through Phase 3 clinical development for the treatment of metabolic dysfunction-associated steatohepatitis (MASH) and severe hypertriglyceridemia (SHTG). Pegozafermin is a specifically engineered, potentially best-in-class fibroblast growth factor 21 (FGF21) analog with unique glycoPEGylated technology that optimizes biological activity through an extended half-life. The company is headquartered in San Francisco. For more information, visit www.89bio.com or follow the company on LinkedIn.

Investor Contact:
Annie Chang
89bio, Inc.
investors@89bio.com

PJ Kelleher
LifeSci Advisors, LLC
+1-617-430-7579
pkelleher@lifesciadvisors.com

Media Contact:
Sheryl Seapy
Real Chemistry
sseapy@realchemistry.com

FAQ

What is the size of 89bio's (ETNB) June 2025 inducement grant?

89bio granted options to purchase 61,100 shares of common stock to three new employees.

What is the vesting schedule for 89bio's June 2025 inducement grants?

The grants vest over 4 years, with 25% vesting after one year and the remainder vesting in 12 equal quarterly installments.

Why did 89bio (ETNB) issue inducement grants in June 2025?

The grants were issued as material inducements for new employees joining the company, in accordance with Nasdaq Listing Rule 5635(c)(4).

What is the exercise price for 89bio's June 2025 inducement grants?

The exercise price is equal to the closing price of 89bio's common stock on June 3, 2025 (the Grant Date).