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

Rhea-AI Summary

89bio (Nasdaq: ETNB) announced the approval of inducement grants by its Board's Compensation Committee. The grants consist of non-qualified stock options to purchase 163,650 shares of common stock, awarded to seven new employees on January 31, 2025. The exercise price equals the closing price of 89bio's stock on the grant date. These options will vest over four years, with 25% vesting after one year and the remaining portion vesting in 12 equal quarterly installments, contingent on continued employment. The grants were made under the company's 2023 Inducement Plan and align with Nasdaq Listing Rule 5635(c)(4).

Positive

• Stock-based compensation aligns new employee interests with shareholders
• Structured vesting schedule promotes employee retention

Negative

• Potential shareholder dilution from 163,650 new shares

SAN FRANCISCO, Feb. 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 163,650 shares of the Company’s common stock to seven new employees (the “Inducement Grants”) on January 31, 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

How many shares are included in 89bio's (ETNB) January 2025 inducement grants?

89bio's inducement grants include options to purchase 163,650 shares of common stock.

What is the vesting schedule for ETNB's January 2025 inducement grants?

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

How many new employees received ETNB stock options in January 2025?

Seven new employees received stock options as part of the inducement grants.

What is the exercise price for ETNB's January 2025 inducement grants?

The exercise price equals the closing price of 89bio's common stock on January 31, 2025 (the Grant Date).