Milestone Pharmaceuticals issued 288,000 options at $1.32 to six new employees as inducement grants. The 4-year vesting schedule points to long-term hiring bets.
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Milestone Pharmaceuticals granted 288,000 options to six new employees as a material inducement to their hiring, the company said Thursday. The options carry an exercise price of $1.32 per share, equal to the July 1 closing price of Milestone's common stock. They vest over four years, with 25% of the shares cliff-vesting at the one-year mark and the remainder vesting in 36 equal monthly installments.
The grants were made under Milestone's 2021 Inducement Plan, which complies with Nasdaq Listing Rule 5635(c)(4). That rule lets companies issue equity to new hires without shareholder approval, provided the plan is used exclusively for that purpose. Milestone's board and compensation committee approved the plan in 2021.
The company is an emerging commercial-stage biopharmaceutical firm focused on cardiovascular medicines. Its lead product, CARDAMYST (etripamil) nasal spray, received FDA approval for converting acute episodes of paroxysmal supraventricular tachycardia (PSVT) to sinus rhythm in adults. Etripamil is also in development for controlling symptomatic episodes linked to atrial fibrillation with rapid ventricular rate (AFib-RVR).
The hiring of six new employees, combined with the inducement grants, suggests Milestone is expanding its commercial and development teams after the FDA approval. The 288,000 options represent modest dilution against the roughly 40 million shares outstanding. The four-year vesting schedule ties the new hires to the stock's performance: the options are at-the-money, so they only deliver value if Milestone's share price rises above $1.32.
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