Terns Pharmaceuticals Announces Inducement Grants Under Nasdaq Rule 5635(C)(4)

FOSTER CITY, Calif., June 03, 2024 – Terns Pharmaceuticals, Inc. (“Terns” or the “Company”) (Nasdaq: TERN), a clinical-stage biopharmaceutical organization dedicated to developing innovative small molecule products to combat serious diseases like cancer and obesity, recently announced the distribution of equity inducement awards to two new hires under its 2022 Employment Inducement Award Plan, as revised. These awards received the sanction of the Compensation Committee of the Company’s Board of Directors, in alignment with Nasdaq Listing Rule 5635(c)(4), and were presented to motivate the new employees to join Terns.

Scott Harris, appointed as Terns' new Chief Development Officer, was granted the option to purchase 475,000 shares of Terns common stock, effective as of May 28, 2024. Another non-executive staff member received the option to buy 36,000 shares of Terns common stock, effective June 1, 2024. The options come with a 10-year lifespan. For Mr. Harris, the exercise price is pegged at $6.32 per share, reflecting the closing price of Terns’ common stock on May 28, 2024. The non-executive employee’s stock options are priced at $6.01 per share, the closing price on May 31, 2024, the last trading day prior to the grant.

The vesting for the non-executive employee’s options begins on May 1, 2024, with a four-year vesting schedule. Initially, 25% of the shares will vest on the first anniversary of the vesting start date, followed by a monthly vesting of 1/36th of the remaining shares, contingent on continued service through the relevant vesting dates.

Terns Pharmaceuticals is renowned for its robust pipeline, which includes three clinical-stage development programs: an allosteric BCR-ABL inhibitor, a small molecule GLP-1 receptor agonist, and a THR-β agonist. Additionally, Terns is advancing a preclinical GIPR modulator discovery effort, with a focus on a GIPR antagonist nomination candidate. The company’s primary mission is to utilize innovative small molecule product candidates to address significant medical needs in areas such as oncology and obesity.