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

Rhea-AI Summary

Avidity Biosciences (RNA) has granted equity awards to 37 new non-executive employees under its 2022 Employment Inducement Incentive Award Plan. The grants include 720,400 non-qualified stock options with an exercise price of $31.82 per share and 276,200 restricted stock units (RSUs).

The stock options will vest over four years, with 25% vesting after one year and the remainder vesting monthly over 36 months. The RSUs will vest in four equal annual installments. These awards were granted as employment inducements in accordance with Nasdaq Listing Rule 5635(c)(4).

Positive

• Successful recruitment of 37 new employees indicating company growth
• Stock options granted at $31.82 per share, reflecting current market value

Negative

• Potential future dilution from 996,600 new shares (options and RSUs combined)

SAN DIEGO, Dec. 20, 2024 /PRNewswire/ -- Avidity Biosciences, Inc. (Nasdaq: RNA), a biopharmaceutical company committed to delivering a new class of RNA therapeutics called Antibody Oligonucleotide Conjugates (AOCs™), today announced that on December 20, 2024, the Human Capital Management Committee of Avidity's Board of Directors granted non-qualified stock option awards to purchase an aggregate of 720,400 shares of its common stock and 276,200 restricted stock units ("RSUs") to thirty-seven (37) new non-executive employees under the Avidity Biosciences, Inc. 2022 Employment Inducement Incentive Award Plan (the "2022 Inducement Plan"). The awards were granted as inducements material to the employees entering into employment with Avidity in accordance with Nasdaq Listing Rule 5635(c)(4).

The 2022 Inducement Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of Avidity, or following a bona fide period of non-employment, as an inducement material to such individuals' entering into employment with Avidity, pursuant to Nasdaq Listing Rule 5635(c)(4). 

The options have an exercise price of $31.82 per share, which is equal to the closing price of Avidity's common stock on The Nasdaq Global Market on December 20, 2024, or the vesting commencement date. The shares subject to the stock options will vest over four years, with 25% of the shares vesting on the one-year anniversary of the vesting commencement date and the balance of the shares vesting in a series of 36 successive equal monthly installments thereafter, subject to each employee's continued employment with Avidity on such vesting dates. The RSUs will vest in four equal installments on the first four anniversaries of the vesting commencement date, subject to each employee's continued employment with Avidity on such vesting dates. The awards are subject to the terms and conditions of the 2022 Inducement Plan and the terms and conditions of a stock option agreement or RSU agreement, as applicable, covering the grant.

About Avidity
Avidity Biosciences, Inc.'s mission is to profoundly improve people's lives by delivering a new class of RNA therapeutics - Antibody Oligonucleotide Conjugates (AOCs™). Avidity is revolutionizing the field of RNA with its proprietary AOCs, which are designed to combine the specificity of monoclonal antibodies with the precision of oligonucleotide therapies to address targets and diseases previously unreachable with existing RNA therapies. Utilizing its proprietary AOC platform, Avidity demonstrated the first-ever successful targeted delivery of RNA into muscle and is leading the field with clinical development programs for three rare neuromuscular diseases: myotonic dystrophy type 1 (DM1), Duchenne muscular dystrophy (DMD) and facioscapulohumeral muscular dystrophy (FSHD). Avidity is also advancing two wholly-owned precision cardiology development candidates addressing rare genetic cardiomyopathies. In addition, Avidity is broadening the reach of AOCs with its advancing and expanding pipeline including programs in cardiology and immunology through key partnerships. Avidity is headquartered in San Diego, CA. For more information about our AOC platform, clinical development pipeline and people, please visit www.aviditybiosciences.com and engage with us on LinkedIn and X.

Investor Contact:
Kat Lange
(619) 837-5014
investors@aviditybio.com

Media Contact:
Di Andrews
(619) 837-5016
media@aviditybio.com

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SOURCE Avidity Biosciences, Inc.

FAQ

How many shares were granted in Avidity Biosciences (RNA) December 2024 inducement grants?

Avidity Biosciences granted options for 720,400 shares and 276,200 RSUs, totaling 996,600 shares.

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

The exercise price is $31.82 per share, equal to RNA's closing price on Nasdaq on December 20, 2024.

What is the vesting schedule for RNA's December 2024 inducement stock options?

The options vest over 4 years, with 25% vesting after one year and the remainder vesting monthly over 36 months.

How do the RSUs vest in RNA's December 2024 inducement grants?

The RSUs vest in four equal annual installments over four years.

How many new employees received RNA's December 2024 inducement grants?

The inducement grants were awarded to 37 new non-executive employees.