PTC Therapeutics Inc. (NASDAQ:PTCT) announced today that in September, the company approved non-statutory stock options to purchase 22, 900 shares of its common stock throughout eleven new employees.
This was made in terms of the companies ‘new hires employment compensation program’, as per the NASDAQ inducement grant exception.
PTC Therapeutics Compensation Committee approved the company’s inducement grant’s in February. In accordance to the NASDAQ Listing Rule 5635(C)(4), the stocks will be distributed as inducement material as soon as the employment offer issued from the company is accepted.
PTC Therapeutics stock statistics
Amongst the stock options, a total of ten of the stock awards has an approximate value of $8.20 per share. This is in relevance to the closing stock prices relevant to when the grant was approved, in September.
The stock options still to be awarded will have a stock price in accordance with the date of the employment for the applicable employee. These stock options, each have a total period of 10-years. The stock will only be available for employees to buy (it will vest) after a period of four years.
However, the vesting period for the stock options is distributed throughout the four-year period. Upon the first anniversary of the relevant employee, 25 percent of the original shares will be available, furthermore, after the first anniversary, an additional 6.25 percent will be available for each consecutive three months of the employee’s contract.
NASDAQ Listing Rule 5635 (C)(4)
The grant was approved in accordance to the NASDAQ Listing Rule 5635(C)(4), this rule covers various aspects of ‘Equity Laws’. This includes various aspects such as the rules of adoption, the relevant applicable dates of which the grant is issued in comparison to that of stock option pricing.
Furthermore, the requirements for the employee being enabled to purchase the stock is made clear through this ruling as per the agreement upon the approval of the grant. In addition to this, the original requirements required from PTC Therapeutics to receive the grant for inducement stock material is also listed throughout NASDAQ Listing Rule 5635 (C)(4).