Terns Pharmaceuticals Reports Inducement Grants to New Employees Under Nasdaq Listing Rule 5635(C)(4)

Rhea-AI Summary

Terns Pharmaceuticals (Nasdaq: TERN) announced on Oct 2, 2025 that it granted equity inducement awards to four new employees under its 2022 Employment Inducement Award Plan, approved by the Compensation Committee under Nasdaq Listing Rule 5635(c)(4).

The Company granted options to purchase a total of 118,000 shares of common stock, with a 10-year term and an exercise price of $7.81 per share (closing price on Oct 1, 2025). The options vest over four years, subject to continued service.

FOSTER CITY, Calif., Oct. 02, 2025 (GLOBE NEWSWIRE) -- Terns Pharmaceuticals, Inc. (“Terns” or the “Company”) (Nasdaq: TERN), a clinical-stage biopharmaceutical company developing a portfolio of small-molecule product candidates to address serious diseases, including oncology and obesity, today announced that it has granted as of October 1, 2025 equity inducement awards to four new employees under the terms of the 2022 Employment Inducement Award Plan, as amended. The equity awards were approved by the Compensation Committee of the Company’s Board of Directors in accordance with Nasdaq Listing Rule 5635(c)(4) and were made as a material inducement to the employees’ acceptance of employment with Terns.

The Company granted options to purchase 118,000 shares, in the aggregate, of Terns common stock to the new employees. The options have a 10-year term and an exercise price per share equal to $7.81, which was the closing price of Terns’ common stock on October 1, 2025. The options vest over four years, subject to the employees’ continued service through the applicable vesting dates.

About Terns Pharmaceuticals

Terns Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company developing a portfolio of small-molecule product candidates to address serious diseases, including oncology and obesity. Terns’ pipeline contains three clinical stage development programs including an allosteric BCR-ABL inhibitor, a small-molecule GLP-1 receptor agonist, a THR-β agonist, and a preclinical GIPR modulator discovery effort, prioritizing a GIPR antagonist nomination candidate. For more information, please visit: www.ternspharma.com.

Contacts for Terns

Investors
Kaytee Bock
investors@ternspharma.com

Media
Jenna Urban
CG Life
media@ternspharma.com

FAQ

How many stock options did Terns Pharmaceuticals (TERN) grant on Oct 1, 2025?

Terns granted a total of 118,000 options to four new employees.

What is the exercise price of the TERN inducement options granted Oct 1, 2025?

The exercise price is $7.81 per share, equal to the closing price on Oct 1, 2025.

What are the term and vesting schedule for the TERN options granted Oct 1, 2025?

Options have a 10-year term and vest over four years subject to continued service.

Why did Terns (TERN) use Nasdaq Listing Rule 5635(c)(4) for these grants?

The grants were approved under Nasdaq Rule 5635(c)(4) as material inducement awards for new hires.

Will the Oct 1, 2025 TERN option grants immediately dilute existing shareholders?

The press release reports 118,000 options granted; any dilution depends on future option exercises and outstanding share count.

Where can investors find details about Terns' inducement awards (TERN) filed Oct 2, 2025?

Details are disclosed in the company's press release and its Nasdaq-required filings related to Rule 5635(c)(4) approvals.