CONSHOHOCKEN, PA--(Marketwire - July 26, 2012) - NuPathe Inc. (NASDAQ: PATH), today announced that it has granted time-based stock options to Armando Anido, the Company's newly appointed chief executive officer, pursuant to the NASDAQ inducement grant exception. The inducement grants were approved by the Company's board of directors and are being made as an inducement material to Mr. Anido's acceptance of employment with the Company in accordance with NASDAQ Listing Rule 5635(c)(4). NuPathe previously announced that Mr. Anido was appointed chief executive officer and a member of the Company's board of directors effective July 25, 2012.
Upon commencement of his employment, Mr. Anido received an initial grant of time-based options to purchase an aggregate of 738,190 shares of the Company's common stock at an exercise price per share equal to closing price of the Company's common stock on July 25, 2012 (referred to in this press release as the "initial options"). These initial options have a ten-year term and will vest and become exercisable as to 25% of such initial options on July 25, 2013 (one year after the date of grant), with the balance vesting in 12 equal quarterly installments thereafter until July 25, 2016; provided, however, that 442,914 of the initial options have the potential for accelerated vesting upon the achievement of certain specified milestones relating to financing, FDA approval of Company's migraine patch and the first commercial sale of the Company's migraine patch.
In addition, upon the completion of any equity financing (as such term is defined in the employment agreement between the Company and Mr. Anido) in 2012, the Company will provide Mr. Anido with additional time-based options to purchase such additional number of shares of the Company's common stock as is equal to 5% of the number of shares of common stock issued by the Company in the applicable equity financing (referred to in this press release as the "additional options"). Any additional options issued to Mr. Anido will have an exercise price per share equal to the closing price of the Company's common stock on the date the additional options are granted. The additional options will have the same ten-year term and will vest according to the same schedule as the initial options and with the same relative proportion having the potential for accelerated vesting upon the achievement of the milestones applicable to the initial options.
In the event Mr. Anido's employment is terminated by the Company without "cause" (as such term is defined in the employment agreement) or by Mr. Anido for "good reason" (as such term is defined in the employment agreement), the initial options and any additional options will continue to vest until the end of the calendar quarter in which the 18-month anniversary of the termination occurs and shall become fully-vested if such termination occurs within 90 days preceding or 12 months following a "change of control" (as such term is defined in the employment agreement). The initial options and any additional options shall also become fully-vested and exercisable in the event of Mr. Anido's death or total disability (as defined in the employment agreement).
NuPathe is providing this information in accordance with NASDAQ Listing Rule 5635(c)(4).
NuPathe Inc. is a biopharmaceutical company focused on innovative neuroscience solutions for diseases of the central nervous system including neurological and psychiatric disorders. NuPathe's lead product candidate, NP101, is an active, single-use, transdermal sumatriptan patch being developed for the treatment of migraine. In addition to NP101, NuPathe has two proprietary product candidates based on its LAD™, or Long-Acting Delivery, biodegradable implant technology that allows delivery of therapeutic levels of medication over a period of months with a single dose. NP201, for the continuous symptomatic treatment of Parkinson's disease, utilizes a leading FDA-approved dopamine agonist, ropinirole, and is being developed to provide up to two months of continuous delivery. NP202, for the long-term treatment of schizophrenia and bipolar disorder, is being developed to address the long-standing problem of patient noncompliance by providing three months of continuous delivery of risperidone, an atypical antipsychotic. NuPathe is actively seeking partnerships to maximize the commercial potential for our pipeline products in the U.S. and territories throughout the world.
For more information about NuPathe, please visit our website and our blog at www.nupathe.com. You can also follow us on StockTwits (stocktwits.nupathe.com), Twitter (twitter.nupathe.com), SlideShare (slideshare.nupathe.com) and LinkedIn (linkedin.nupathe.com).