TransMedics Reports Inducement Grants Under NASDAQ Listing Rule 5635(c)(4)

Rhea-AI Summary

TransMedics Group, Inc. (Nasdaq: TMDX), a medical technology company focusing on organ transplant therapy, has announced the granting of inducement awards to four new employees. The grants, approved by the Compensation Committee and in line with Nasdaq Listing Rule 5635(c)(4), include:

- 3,073 non-qualified stock options with an exercise price of $170.28 per share
- 2,003 restricted stock units

The stock options have a 10-year term and will vest over four years, with 25% vesting on the first anniversary and the remainder monthly over three years. The restricted stock units will vest 25% annually over four years. Both are subject to continued employment and the terms of the TransMedics Group, Inc. Inducement Plan.

Positive

• Attracting new talent with stock-based compensation
• Aligning employee interests with company performance through equity grants

Negative

• Potential dilution of existing shareholders' equity

ANDOVER, Mass., Aug. 20, 2024 /PRNewswire/ -- TransMedics Group, Inc. ("TransMedics") (Nasdaq: TMDX), a medical technology company that is transforming organ transplant therapy for patients with end-stage lung, heart, and liver failure, today announced that on August 16, 2024, TransMedics granted non-qualified stock options to purchase an aggregate of 3,073 shares of its common stock and an aggregate of 2,003 restricted stock units to 4 employees, each as a material inducement for each employee's entry into employment with TransMedics. The grants were approved by the Compensation Committee of the TransMedics Board of Directors and were granted in accordance with Nasdaq Listing Rule 5635(c)(4) and pursuant to the TransMedics Group, Inc. Inducement Plan.

TransMedics granted non-qualified stock options to purchase 3,073 shares of TransMedics' common stock and 2,003 restricted stock units in the aggregate. The stock options were granted with a per share exercise price of $170.28, the closing price of the common stock on the Nasdaq Global Market on August 16, 2024. Twenty-five percent of the shares subject to each option will vest on the first yearly anniversary of the date of the employee's start of employment, with the remainder vesting in equal monthly installments over the subsequent three year period, subject to the employee's continued service with the Company through the applicable vesting date. The options have a 10-year term and are subject to the terms of the TransMedics Group, Inc. Inducement Plan. Twenty-five percent of each restricted stock unit award will vest on the first four anniversaries of the date of the employee's start of employment, subject to the employee's continued service with the Company through the applicable vesting date. The restricted stock units are subject to the terms of the TransMedics Group, Inc. Inducement Plan.

About TransMedics Group, Inc.
TransMedics is the world's leader in portable extracorporeal warm perfusion and assessment of donor organs for transplantation. Headquartered in Andover, Massachusetts, the company was founded to address the unmet need for more and better organs for transplantation and has developed technologies to preserve organ quality, assess organ viability prior to transplant, and potentially increase the utilization of donor organs for the treatment of end-stage heart, lung, and liver failure.

Investor Contact:
Brian Johnston
332-895-3222
Investors@transmedics.com

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SOURCE TransMedics Group, Inc.

FAQ

How many employees received inducement grants from TransMedics (TMDX) on August 16, 2024?

TransMedics (TMDX) granted inducement awards to four new employees on August 16, 2024.

What types of inducement grants did TransMedics (TMDX) issue on August 16, 2024?

TransMedics (TMDX) issued non-qualified stock options to purchase 3,073 shares of common stock and 2,003 restricted stock units as inducement grants.

What was the exercise price for the stock options granted by TransMedics (TMDX) on August 16, 2024?

The stock options were granted with an exercise price of $170.28 per share, which was the closing price of TransMedics (TMDX) common stock on the Nasdaq Global Market on August 16, 2024.

What is the vesting schedule for the stock options granted by TransMedics (TMDX) on August 16, 2024?

25% of the stock options vest on the first yearly anniversary of employment, with the remainder vesting in equal monthly installments over the subsequent three years, subject to continued employment.