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

Rhea-AI Summary

Lifecore Biomedical (NASDAQ: LFCR) has announced the granting of equity inducement awards to Thomas D. Salus, their newly appointed chief legal and administration officer. The grants, approved on April 14, 2025, include:

• 45,000 restricted stock units (RSUs) vesting on the third anniversary
• 210,000 stock options vesting over three years
• 170,000 RSUs vesting in three annual installments
• Performance stock units (PSUs) of up to 370,000 shares based on stock price targets

The PSUs will vest based on achieving stock price targets ranging from $7.50 to $35.00 per share over a five-year performance period, with 50% of vested shares restricted from transfer for one year after vesting. These awards were granted under Lifecore's Equity Inducement Plan in accordance with Nasdaq Listing Rule 5635(c)(4).

CHASKA, Minn., April 16, 2025 (GLOBE NEWSWIRE) -- Lifecore Biomedical, Inc. (NASDAQ: LFCR) (“Lifecore”) a fully integrated contract development and manufacturing organization (“CDMO”), today announced that Lifecore granted a restricted stock unit (“RSU”) award with respect to 45,000 shares of its common stock, an option for 210,000 shares of stock, an RSU for 170,000 shares of common stock, and a performance stock unit (“PSU”) award for up to 370,000 shares of its common stock to Thomas D. Salus, Lifecore’s newly hired chief legal and administration officer. The RSU awards, stock option and PSU award were granted April 14, 2025, pursuant to an employment agreement between Lifecore and Mr. Salus, and as a material inducement to Mr. Salus joining Lifecore as its chief legal and administration officer.

The RSU awards, stock option and PSU award were approved by Lifecore’s compensation committee and were granted as inducement equity awards in accordance with Nasdaq Listing Rule 5635(c)(4) under Lifecore’s Equity Inducement Plan, as amended (the “Inducement Plan”).

The RSU award for 45,000 shares will vest and be settled on the third anniversary of the April 14, 2025, grant date. The stock option has an exercise price equal to Fair Market Value (as defined in the Inducement Plan) on April 14, 2025, and will vest as one-third of the shares on the first anniversary of the grant date and as to 1/36th of the shares on each monthly grant date thereafter, subject to continued employment. The RSU award for 170,000 shares will vest and be settled in three nearly equal installments on each of the first three anniversaries of the April 14, 2025, grant date. Each of the RSU and stock option awards is governed by an award agreement and the Inducement Plan.

The PSU award will vest, if at all, based upon the Performance Price achievement within the five-year performance period as compared to a range of ten prices from $7.50 per share to $35.00 per share. The Performance Price is the average Fair Market Values (as defined in the Inducement Plan) of one share of the company’s common stock over a period of 20 consecutive trading days within the performance period. To the extent the PSU award becomes vested, the company will issue Mr. Salus shares of the company’s common stock on the vesting date in settlement of the PSU award, with 50% of the shares so issued being restricted from transfer until the one-year anniversary of the vesting date. The PSU award is governed by a Performance Stock Unit Award Agreement and the Inducement Plan.

About Lifecore Biomedical
Lifecore Biomedical, Inc. (Nasdaq: LFCR) is a fully integrated contract development and manufacturing organization (CDMO) that offers highly differentiated capabilities in the development, fill and finish of sterile injectable pharmaceutical products in syringes, vials, and cartridges, including complex formulations. As a leading manufacturer of premium, injectable-grade hyaluronic acid, Lifecore brings more than 40 years of expertise as a partner for global and emerging biopharmaceutical and biotechnology companies across multiple therapeutic categories to bring their innovations to market. For more information about the company, visit Lifecore’s website at www.lifecore.com.

Lifecore Biomedical, Inc. Contact Information:

Stephanie Diaz (Investors)
Vida Strategic Partners
415-675-7401
sdiaz@vidasp.com

Tim Brons (Media)
Vida Strategic Partners
415-675-7402
tbrons@vidasp.com

Ryan D. Lake (CFO)
Lifecore Biomedical
952-368-6244
ryan.lake@lifecore.com

FAQ

What equity compensation package did Lifecore Biomedical (LFCR) grant to its new chief legal officer?

Lifecore granted Thomas D. Salus 45,000 RSUs, 210,000 stock options, 170,000 RSUs, and up to 370,000 PSUs on April 14, 2025.

What are the vesting conditions for LFCR's performance stock units (PSUs)?

The PSUs will vest based on achieving stock prices between $7.50 and $35.00 per share over a five-year period, with 50% of vested shares locked for one year post-vesting.

How will the 210,000 stock options granted by LFCR vest?

One-third of the options vest after the first year, with the remaining vesting monthly over the following two years (1/36th per month).

What is the vesting schedule for LFCR's 170,000 RSU grant?

The 170,000 RSUs will vest in three approximately equal installments on each anniversary of the April 14, 2025 grant date.