Freshpet, Inc. Announces Inducement Grant Under NASDAQ Listing Rule 5635(c)(4)

Rhea-AI Summary

Freshpet Inc (Nasdaq: FRPT) has announced an inducement grant for its new Chief Operating Officer, Nicki Baty. The Compensation and Human Capital Management Committee approved an equity award of 17,150 restricted stock units effective September 1, 2024. This grant, made outside the company's 2014 Omnibus Incentive Plan, complies with NASDAQ Listing Rule 5635(c)(4).

The restricted stock units will vest over three years: 33.3% in the first year, 39.5% in the second year, and 27.2% in the third year, contingent on Ms. Baty's continued employment. This inducement grant is designed to align the new COO's interests with those of Freshpet's shareholders and incentivize long-term commitment to the company.

Positive

• Appointment of a new Chief Operating Officer, indicating potential for improved operational efficiency
• Implementation of a vesting schedule for the restricted stock units, encouraging long-term commitment from the new COO

Negative

• Potential dilution of existing shareholders' equity due to the issuance of new restricted stock units

News Market Reaction

+0.89%

1 alert

+0.89% News Effect

On the day this news was published, FRPT gained 0.89%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

BEDMINSTER, N.J., Sept. 06, 2024 (GLOBE NEWSWIRE) -- Freshpet, Inc. (“Freshpet” or the “Company”) (Nasdaq: FRPT) today announced that the Compensation and Human Capital Management Committee of its Board of Directors approved an equity award as an inducement material to Nicki Baty's acceptance of employment with the Company in accordance with NASDAQ Listing Rule 5635(c)(4).

In connection with her previously announced appointment to Chief Operating Officer, Ms. Baty was granted, effective September 1, 2024, inducement awards consisting of a total of 17,150 restricted stock units. The restricted stock units will vest 33.3%, 39.5% and 27.2%, respectively, on each of the first three anniversaries of the date of grant, subject to Ms. Baty’s continued employment through such dates. The awards were granted outside of the Company’s 2014 Omnibus Incentive Plan as an inducement grant pursuant to Nasdaq Rule 5635(c)(4), but will otherwise be consistent with the terms and conditions that apply to awards granted under such plan.

About Freshpet
Freshpet’s mission is to improve the lives of dogs and cats through the power of fresh, real food. Freshpet foods are blends of fresh meats, vegetables and fruits farmed locally and made at our Freshpet Kitchens. We thoughtfully prepare our foods using natural ingredients, cooking them in small batches at lower temperatures to preserve the natural goodness of the ingredients. Freshpet foods and treats are kept refrigerated from the moment they are made until they arrive at Freshpet Fridges in your local market.

Our foods are available in select grocery, mass, digital, pet specialty, and club retailers across the United States, Canada and Europe. From the care we take to source our ingredients and make our food, to the moment it reaches your home, our integrity, transparency and social responsibility are the way we like to run our business. To learn more, visit www.freshpet.com.

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FAQ

How many restricted stock units were granted to Freshpet's new COO?

Freshpet (FRPT) granted 17,150 restricted stock units to its new Chief Operating Officer, Nicki Baty, as an inducement award.

What is the vesting schedule for the restricted stock units granted by Freshpet (FRPT)?

The restricted stock units will vest 33.3% after one year, 39.5% after two years, and 27.2% after three years, subject to the COO's continued employment.

When was the inducement grant for Freshpet's new COO effective?

The inducement grant for Freshpet's (FRPT) new Chief Operating Officer, Nicki Baty, was effective September 1, 2024.

Under which rule was Freshpet's (FRPT) inducement grant made?

Freshpet's inducement grant was made outside of its 2014 Omnibus Incentive Plan, pursuant to NASDAQ Listing Rule 5635(c)(4).