GeneDx announced that, effective as of October 1, the compensation committee of GeneDx’s board of directors granted newly-hired employees 133,998 restricted stock units (“RSUs”) as inducements material to each employee entering into employment with GeneDx. The RSUs were granted under GeneDx’s 2023 Equity Inducement Plan and in accordance with Nasdaq Listing Rule 5635(c)(4).
The inducement RSUs will vest with respect to 25% of the underlying shares on the first anniversary of October 1, 2023 (the “Vesting Commencement Date”) and with respect to 6.25% of the underlying shares on each of the 12 quarterly anniversaries of the Vesting Commencement Date thereafter, subject to the employee’s continued service with the Company on each applicable vesting date.
Each RSU represents a contingent right to receive 1 share of the Issuer’s Class A Common Stock upon settlement. Typically, upon full vesting, shares are sold to cover tax withholding obligations in connection with the vesting and settlement of RSUs and funded by a “sell to cover” transaction. This does not represent a discretionary transaction by the Reporting Person.