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

Rhea-AI Summary

TransMedics Group (TMDX) has announced the granting of inducement awards to three new employees on January 28, 2025. The compensation package includes:

- 34,884 non-qualified stock options with an exercise price of $67.03 (closing price on grant date)
- 23,192 restricted stock units (RSUs)

The stock options will vest 25% after one year, with the remainder vesting monthly over three years. They have a 10-year term. The RSUs will vest 25% annually over four years. Both grants are subject to continued employment and were approved by the Compensation Committee under Nasdaq Listing Rule 5635(c)(4) through the TransMedics Group Inducement Plan.

Positive

• Stock-based compensation aligns new employee interests with shareholders
• Four-year vesting schedule promotes employee retention

Negative

• Potential dilution of existing shareholders from new equity grants

ANDOVER, Mass., Feb. 3, 2025 /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 January 28, 2025, TransMedics granted non-qualified stock options to purchase an aggregate of 34,884 shares of its common stock and an aggregate of 23,192 restricted stock units to 3 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 34,884 shares of TransMedics' common stock and 23,192 restricted stock units in the aggregate. The stock options were granted with a per share exercise price of $67.03, the closing price of the common stock on the Nasdaq Global Market on January 28, 2025. 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
Laine Morgan
332-895-3222
Investors@transmedics.com

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SOURCE TransMedics Group, Inc.

FAQ

How many shares did TransMedics (TMDX) grant in inducement awards on January 28, 2025?

TransMedics granted 34,884 stock options and 23,192 restricted stock units to three new employees.

What is the exercise price for TMDX's January 2025 inducement stock options?

The stock options were granted with an exercise price of $67.03, which was the closing price of TMDX common stock on January 28, 2025.

What is the vesting schedule for TMDX's January 2025 inducement stock options?

25% of the options vest after one year, with the remaining 75% vesting monthly over the subsequent three years, subject to continued employment.

How do the restricted stock units (RSUs) vest in TMDX's January 2025 inducement grants?

The RSUs vest 25% annually over four years, with vesting occurring on each anniversary of the employee's start date.