Travere Therapeutics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Travere Therapeutics (NASDAQ: TVTX) has announced inducement equity grants for ten new employees, approved by the Compensation Committee of its Board of Directors on February 10, 2025. The grants include 36,000 shares of stock options and 79,100 shares of restricted stock units (RSUs).

The stock options, priced at $21.10 per share, are non-qualified with a 10-year term. They vest over four years, with 25% vesting after one year and the remaining 75% vesting monthly over 36 months. The RSUs also follow a four-year vesting schedule, with 25% vesting annually. Both grants require continued employment with Travere and were issued outside the 2018 Equity Incentive Plan under Nasdaq Listing Rule 5635(c)(4).

Positive

• Company demonstrates ability to attract new talent with equity compensation
• Structured vesting schedule helps retain employees over long-term (4 years)

Negative

• Potential dilution of existing shareholders through new equity grants of 115,100 shares

News Market Reaction – TVTX

+2.24%

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+2.24% News Effect

On the day this news was published, TVTX gained 2.24%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

SAN DIEGO, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Travere Therapeutics, Inc. (NASDAQ: TVTX) today announced that on February 10, 2025, the Compensation Committee of its Board of Directors granted inducement equity grants covering an aggregate of 115,100 shares of its common stock to ten new employees, consisting of inducement stock options to purchase an aggregate of 36,000 shares of common stock and inducement restricted stock units, or RSUs, covering an aggregate of 79,100 shares of its common stock. These inducement stock options and inducement RSUs are subject to the terms of Travere’s 2018 Equity Incentive Plan (“2018 Plan”) but were granted outside of the 2018 Plan and were granted as inducements material to the new employees entering into employment with Travere in accordance with Nasdaq Listing Rule 5635(c)(4).

The stock options have an exercise price of $21.10 per share, the closing price of Travere’s common stock on the date of grant, are non-qualified stock options, have a 10-year term and vest over four years, with 25% of the shares vesting on the one-year anniversary of the grant date and the remaining 75% of the shares vesting in equal monthly installments over the following 36 months, subject to the new employee’s continued service relationship with Travere through the applicable vesting dates.

The RSUs vest over four years, with 25% of the shares vesting on each anniversary of the grant date, subject to the new employee’s continued service relationship with Travere through the applicable vesting dates.

About Travere Therapeutics

At Travere Therapeutics, we are in rare for life. We are a biopharmaceutical company that comes together every day to help patients, families and caregivers of all backgrounds as they navigate life with a rare disease. On this path, we know the need for treatment options is urgent – that is why our global team works with the rare disease community to identify, develop and deliver life-changing therapies. In pursuit of this mission, we continuously seek to understand the diverse perspectives of rare patients and to courageously forge new paths to make a difference in their lives and provide hope – today and tomorrow. For more information, visit travere.com.

Contact Info

Media: 888-969-7879 mediarelations@travere.com

Investors: 888-969-7879 IR@travere.com

FAQ

How many shares were granted in TVTX's February 2025 inducement grants?

Travere Therapeutics granted a total of 115,100 shares, consisting of 36,000 shares in stock options and 79,100 shares in RSUs.

What is the exercise price for TVTX's February 2025 inducement stock options?

The stock options have an exercise price of $21.10 per share, which was the closing price of Travere's common stock on the grant date.

What is the vesting schedule for TVTX's February 2025 inducement RSUs?

The RSUs vest over four years, with 25% of the shares vesting on each anniversary of the grant date.

How long is the vesting period for TVTX's February 2025 stock options?

The stock options vest over four years, with 25% vesting after one year and the remaining 75% vesting in monthly installments over the following 36 months.

How many new employees received TVTX's February 2025 inducement grants?

Ten new employees received the inducement grants from Travere Therapeutics.