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

Rhea-AI Summary

On February 20, 2023, TransMedics Group (NASDAQ: TMDX) granted non-qualified stock options for 72,774 shares and restricted stock units for 17,092 shares to new employees as part of their inducement to join the company. The options have an exercise price of $66.10, equivalent to the closing price on February 17, 2023. Vesting for the stock options occurs over four years, while the restricted stock units vest over the first four anniversaries of employment. These grants were authorized by the Compensation Committee in compliance with Nasdaq Listing Rule 5635(c)(4).

Positive

• Stock options and restricted stock units granted to attract new talent.
• Options priced at $66.10 align with the recent market closing price.

Negative

• None.

News Market Reaction – TMDX

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-0.83% News Effect

On the day this news was published, TMDX declined 0.83%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

ANDOVER, Mass., Feb. 24, 2023 /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 February 20, 2023, TransMedics granted non-qualified stock options to purchase an aggregate of 72,774 shares of its common stock to seven employees and an aggregate of 17,092 restricted stock units to three employees, each as a material inducement for each employee's entry into employment with TransMedics. The grants included stock options to purchase 19,732 shares of TransMedics' common stock and 12,886 restricted stock units granted to Nick Corcoran, the Company's Senior Vice President of Supply Chain and Operations. 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 72,774 shares of TransMedics' common stock and 17,092 restricted stock units in the aggregate. The stock options were granted with a per share exercise price of $66.10, the closing price of the common stock on the Nasdaq Global Market on February 17, 2023. 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

What are the recent stock option grants by TransMedics Group (TMDX)?

On February 20, 2023, TransMedics Group granted 72,774 stock options and 17,092 restricted stock units to new employees.

What was the exercise price for the stock options granted by TMDX?

The stock options were granted at an exercise price of $66.10.

How does the vesting schedule for TMDX stock options work?

The stock options vest 25% on the first anniversary of employment and the remainder vests in equal monthly installments over three years.

Is the stock option grant by TMDX compliant with Nasdaq rules?

Yes, the grants were made in accordance with Nasdaq Listing Rule 5635(c)(4).