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

Rhea-AI Summary

Terns Pharmaceuticals (NASDAQ: TERN), a clinical-stage biopharmaceutical company focused on developing small-molecule treatments for oncology and obesity, has announced equity inducement grants to two new employees. The grants, approved under the 2022 Employment Inducement Award Plan and in compliance with Nasdaq Listing Rule 5635(c)(4), include:

- Options to purchase 325,000 shares of Terns common stock - Exercise price of $3.56 per share (closing price on May 1, 2025) - 10-year term options - Four-year vesting period, contingent on continued employment

FOSTER CITY, Calif., May 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 May 1, 2025 equity inducement awards to two 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 325,000 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 $3.56, which was the closing price of Terns’ common stock on May 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 Zafereo
investors@ternspharma.com

Media
Jenna Urban
CG Life
media@ternspharma.com

FAQ

What equity inducement grants did TERN announce on May 2, 2025?

Terns Pharmaceuticals granted options to purchase 325,000 shares of common stock to two new employees, with an exercise price of $3.56 per share and a 10-year term, vesting over four years.

What is the vesting period for TERN's employee stock options granted in May 2025?

The stock options vest over a four-year period, subject to the employees' continued service through the applicable vesting dates.

What was the exercise price for TERN's inducement grants announced in May 2025?

The exercise price was $3.56 per share, which was Terns Pharmaceuticals' closing stock price on May 1, 2025.

How many new employees received stock options from TERN in the May 2025 grant?

Two new employees received stock options from Terns Pharmaceuticals in the May 2025 inducement grant.