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

Rhea-AI Summary

TransMedics Group (Nasdaq: TMDX) announced the granting of inducement awards to three new employees, including their new Chief Financial Officer Gerardo Hernandez. The grants consist of 20,612 non-qualified stock options and 13,576 restricted stock units. The stock options were granted at an exercise price of $69.84, matching the closing price on December 9, 2024.

The vesting schedule for options includes 25% after the first year, with the remainder vesting monthly over three years. Restricted stock units will vest 25% annually over four years. All grants require continued employment and were approved under Nasdaq Listing Rule 5635(c)(4) through the TransMedics Group Inducement Plan.

Positive

• Successful recruitment of new CFO Gerardo Hernandez
• Stock options granted at market price ($69.84) aligning management interests with shareholders
• Four-year vesting schedule promotes long-term retention of key employees

Negative

• Potential future dilution from 34,188 new shares (combined options and RSUs)

ANDOVER, Mass., Dec. 12, 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 December 9, 2024, TransMedics granted non-qualified stock options to purchase an aggregate of 20,612 shares of its common stock and an aggregate of 13,576 restricted stock units to 3 employees, each as a material inducement for each employee's entry into employment with TransMedics. The grants included stock options to purchase 18,922 shares of TransMedics' common stock and 12,463 restricted stock units granted to Gerardo Hernandez, the Company's Chief Financial Officer. 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 20,612 shares of TransMedics' common stock and 13,576 restricted stock units in the aggregate. The stock options were granted with a per share exercise price of $69.84, the closing price of the common stock on the Nasdaq Global Market on December 9, 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 stock options and RSUs did TransMedics (TMDX) grant in December 2024?

TransMedics granted 20,612 non-qualified stock options and 13,576 restricted stock units to three employees.

What is the exercise price for TMDX's December 2024 stock option grants?

The stock options were granted with an exercise price of $69.84, matching the closing price on December 9, 2024.

What is the vesting schedule for TMDX's December 2024 inducement grants?

Stock options vest 25% after one year with the remainder monthly over three years, while RSUs vest 25% annually over four years.

How many stock options and RSUs were granted to TMDX's new CFO Gerardo Hernandez?

Gerardo Hernandez received 18,922 stock options and 12,463 restricted stock units.