Organovo Reports Inducement Grants Under NASDAQ Listing Rule 5635(c)(4)
August 14 2018 - 5:00PM
Organovo Holdings, Inc. (NASDAQ:ONVO) (“Organovo” or the “Company”)
announced the grant of inducement awards on August 14, 2018 to Dr.
Steven G. Hughes, its new chief medical officer. The
inducement awards were approved by the compensation committee of
the Company’s board of directors and issued as a material
inducement to Dr. Hughes agreeing to join the Company in accordance
with NASDAQ Listing Rule 5635(c)(4).
Pursuant to the terms of his offer letter, Dr. Hughes received a
stock option to purchase 974,694 shares of Organovo’s common stock
(the “Stock Option”) and a restricted stock unit award for 160,714
shares of common stock (the “RSU”). The Stock Option has an
exercise price of $1.12 per share, which is equal to the closing
price of Organovo’s common stock on August 14, 2018.
One-fourth of the option shares and RSU grant will vest on August
15, 2019, and the remaining option and RSU shares will vest on a
quarterly basis over the subsequent three years, subject to Dr.
Hughes’ continuous service through the applicable vesting
date. The Stock Option and RSU both have ten-year
terms. While the Stock Option and RSU were issued as
inducement grants outside of the Company’s 2012 Equity Incentive
Plan (the “Plan”), the terms and conditions applicable to the Stock
Option and RSU’s will be consistent with the Plan, the stock option
and restricted stock unit awards previously granted to the
Company’s executive officers under the Plan and the Company’s
Severance and Change in Control Plan.
About Organovo Holdings, Inc.Organovo is a
biotech platform company that has developed a leadership position
with its revolutionary ability to 3D bioprint tissues with human
functionality. The Company is pursuing multiple IND-track
programs to develop its NovoTissues® to address a number of serious
unmet medical needs in adult and pediatric populations, initially
focusing on liver disease. Organovo’s first IND-track program
for Alpha-1-antitrypsin deficiency recently received orphan drug
designation from the FDA, and the Company expects to file its first
IND in 2020. In order to help fund its plan to initiate
multiple IND-track programs, the Company is providing access to its
ExVive™ in vitro tissue disease modeling platform to facilitate
high value drug discovery and development collaborations.
Organovo’s wholly-owned subsidiary, Samsara Sciences, provides the
Company and its clients with high quality human liver and kidney
cells for research applications. Organovo is changing the
shape of life science research and transforming medical care.
Learn more at www.organovo.com.
Forward-Looking Statements Any statements
contained in this press release that do not describe historical
facts constitute forward-looking statements as that term is defined
in the Private Securities Litigation Reform Act of 1995. Any
forward-looking statements contained herein are based on current
expectations, but are subject to a number of risks and
uncertainties. Forward-looking statements include, but are
not limited to, statements regarding the potential benefits and
therapeutic uses of the Company’s therapeutic liver tissue,
including the benefits of an orphan designation; the Company’s
expectations regarding the FDA regulatory pathway and anticipated
timelines for its regulatory filings; the potential market
opportunity for the Company’s therapeutic tissue candidates; and
customer demand for and acceptance of our disease modeling and
other in vitro tissue platforms. The factors that could cause
the Company's actual future results to differ materially from
current expectations include, but are not limited to, risks and
uncertainties relating to the possibility that the final results of
the Company's preclinical studies may be different from the
Company's studies or interim preclinical data results and may not
support further clinical development of its therapeutic tissues;
the Company may not successfully complete the required preclinical
and clinical trials required to obtain regulatory approval for its
therapeutic tissues on a timely basis or at all; risks that
competitive products may adversely impact the market opportunity
for the Company’s therapeutic tissue candidates; the Company's
ability to develop, market and sell products and services based on
its technology; the expected benefits and efficacy of the Company's
products, services and technology; the Company’s ability to execute
framework agreements involving multi-year commitments and routine
use on a timely basis, or at all; the Company’s ability to
successfully complete studies and provide the technical information
required to support market acceptance of its products, services and
technology, on a timely basis or at all; the Company's business,
research, product development, regulatory approval, marketing and
distribution plans and strategies, including its use of third party
distributors; the Company’s ability to recognize deferred revenue;
and the Company’s ability to meet its fiscal-year 2019 goals and
outlook. These and other factors are identified and described in
more detail in the Company's filings with the SEC, including its
Annual Report on Form 10-K filed with the SEC on May 31, 2018. You
should not place undue reliance on these forward-looking
statements, which speak only as of the date that they were made.
These cautionary statements should be considered with any written
or oral forward-looking statements that the Company may issue in
the future. Except as required by applicable law, including the
securities laws of the United States, the Company does not intend
to update any of the forward-looking statements to conform these
statements to reflect actual results, later events or circumstances
or to reflect the occurrence of unanticipated events.
Investor & Press Contact:
Steve Kunszabo
Organovo Holdings, Inc.
+1 (858) 224-1092
skunszabo@organovo.com
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