SAN DIEGO, CA - Boundless Bio, Inc., a pharmaceutical company based in Delaware, has implemented a repricing of stock options for certain employees, including top executives, as disclosed in a recent SEC filing.
The decision, effective as of Monday, was made to incentivize and retain key employees without the need for additional equity grants or cash compensation, which could dilute company shares or increase cash expenditures.
According to the filing, the exercise price of each outstanding stock option with an exercise price per share above $3.71 has been reduced to $3.56, the closing price of Boundless Bio's common stock on the date of the event. This move is aimed at maintaining a motivated workforce amid the company's ongoing efforts in the pharmaceutical preparations sector.
The repricing affects a significant number of options held by the company's named executive officers. Zachary D. Hornby (LON:HRN), President and CEO, now has 1,147,242 repriced options, while Klaus Wagner, M.D., Ph.D., Chief Medical Officer, has 316,893, and Chris Hassig, Ph.D., Chief Scientific Officer, holds 292,821 repriced options. These options previously had exercise prices ranging from $3.71 to $16.00.
The conditions for exercising these repriced options at the new, lower price include a service requirement up to the "Premium End Date," which is defined as the earliest of August 19, 2026, the day before a change in control of the company occurs, or the date of an employee's qualifying termination due to reasons such as a reduction in force not related to cause, death, or disability.
In other recent news, Boundless Bio, a clinical-stage oncology company, has announced strategic updates and financial results for the second quarter of 2024. The company is streamlining operations and focusing on its core strategic priorities, aiming to extend its operational runway into the fourth quarter of 2026.
Key priorities include advancing its Phase 1/2 POTENTIATE clinical trial of BBI-355 and its Phase 1/2 STARMAP clinical trial of BBI-825. Both trials are expected to provide initial proof-of-concept data in the second half of 2025.
Boundless Bio is also working on a third ecDTx program and deploying its proprietary ecDNA diagnostic, ECHO, in clinical settings. The company's financial position remains solid, with cash, cash equivalents, and short-term investments totaling $179.3 million as of June 30, 2024.
With research and development expenses for the quarter at $14.7 million, and general and administrative expenses at $4.7 million, the net loss was $17.0 million.
The company has implemented measures to expedite enrollment in the BBI-355 POTENTIATE trial. These are recent developments that highlight the company's efforts to streamline operations and prioritize its ecDTx programs to ensure the necessary capital for ongoing clinical trials.
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