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Connect Biopharma, a clinical-stage biopharma company focused on T cell-driven therapies for chronic inflammatory diseases, announced inducement grants under Nasdaq Listing Rule 5635(c)(4). The company’s Board of Directors granted non-qualified stock options to its newly-appointed CEO, Barry Quart, and President, David Szekeres. Effective June 12, 2024, Quart received options for 2,658,734 shares, and Szekeres for 1,772,489 shares, with an exercise price of $1.77 per share. These options vest over four years, with 25% vesting after the first year and the rest monthly thereafter, contingent on continued employment.
Positive
- Granted inducement stock options may help attract and retain top executive talent.
- Options granted at $1.77 per share, aligning executive incentives with shareholder value.
- Vesting schedule encourages long-term commitment from executives.
Negative
- Potential dilution of shares due to issuance of 4,431,223 new stock options.
- Four-year vesting period may lead to prolonged uncertainty regarding the executives’ future performance.
- Executives’ compensation package might be perceived as excessive by some investors.
SAN DIEGO, CA and TAICANG, China, June 12, 2024 (GLOBE NEWSWIRE) — Connect Biopharma Holdings Limited (Nasdaq: CNTB) (Connect or the Company), a U.S.-headquartered, global clinical-stage biopharmaceutical company dedicated to improving the lives of patients with chronic inflammatory diseases through the development of therapies derived from T cell-driven research, announced today that the Board of Directors (Board), including all of the independent directors of the Board, granted to Barry Quart, Pharm.D., the Company’s newly-appointed Chief Executive Officer, and David Szekeres, the Company’s newly-appointed President, non-qualified stock option awards to purchase an aggregate of 2,658,734 ordinary shares and 1,772,489 ordinary shares, respectively, under the Connect Biopharma Holdings Limited 2024 Employment Inducement Incentive Award Plan (the Inducement Plan). The options were granted effective June 12, 2024 and have an exercise price of $1.77 per share (the closing price of Connect’s ordinary shares on the grant date). The options vest over a period of four years, with 25% vesting on June 12, 2025 and the remaining shares vesting in equal monthly installments thereafter, subject to each executive’s continued employment or service. The awards were granted as inducements material to Dr. Quart and Mr. Szekeres entering into employment with Connect in accordance with Nasdaq Listing Rule 5635(c)(4).
About Connect Biopharma Holdings Limited
Connect Biopharma is a global, clinical-stage biopharmaceutical company applying its expertise in T cell biology and deep knowledge of the drug discovery industry to develop innovative therapies to treat chronic inflammatory diseases with the goal of improving the lives of millions of those affected around the world. The Company is building a rich pipeline of proprietary small molecules and antibodies, using functional T cell assays, to screen and discover potent product candidates against validated immune targets. The Company’s lead product candidate, rademikibart (formerly known as CBP-201), is an antibody designed to target interleukin-4 receptor alpha (IL-4Rα) in development for the treatment of atopic dermatitis and asthma. The Company’s second product candidate, icanbelimod (formerly known as CBP-307), is a modulator of S1P1 T cell receptors and is in development for the treatment of ulcerative colitis (UC). For more information, please visit: https://www.connectbiopharm.com/
INVESTOR CONTACT:
Tim McCarthy
LifeSci Advisors
tim@lifesciadvisors.com
FAQ
What did Connect Biopharma announce on June 12, 2024?
Connect Biopharma announced inducement grants under Nasdaq Listing Rule 5635(c)(4) for its newly-appointed CEO and President.
Who received stock option awards from Connect Biopharma?
Newly-appointed CEO Barry Quart and President David Szekeres received the awards.
How many shares were granted to Barry Quart as stock options?
Barry Quart was granted stock options for 2,658,734 shares.
What is the exercise price for the stock options granted by Connect Biopharma?
The exercise price for the stock options is $1.77 per share.
Over what period do the granted stock options vest?
The stock options vest over a period of four years, with 25% vesting after the first year and the remaining shares vesting monthly thereafter.
Why were these stock options granted to the executives?
The stock options were granted as inducements material to the executives entering into employment with Connect Biopharma, in accordance with Nasdaq Listing Rule 5635(c)(4).
How many shares were granted to David Szekeres as stock options?
David Szekeres was granted stock options for 1,772,489 shares.
