Shares of dermatology-focused company STRATA Skin Sciences, Inc. (NASDAQ: SSKN) leapt 15.03% to $1.99 in the trading after ring of the bell on Monday. The regular session on the day was not profitable for the stock as it fell -5.46% to close at $1.73. The situation came arising after surfacing of inducement grant news to newly joined CEO.
What drove the stock?
Strata Skin Sciences is a medical technology company dedicated to the development, commercialization and marketing of innovative dermatologic products with a focus on Dermatology and Plastic Surgery. It specializes in the creation of equipment for the treatment of various skin conditions, including psoriasis, vitiligo, and other serious conditions.
The Company’s patented XTRAC laser delivers a target-based UVB beam for the treatment of psoriasis, vitiligo, eczema, leukoderma, and atopic dermatitis. It is estimated that over 31 million patients in the United States are suffering from these diseases alone. There are multiple patents on this technology, including the exclusive rights for the delivery of treatments to patients with vitiligo.
Yesterday, STRATA Skin Sciences announced that the Company granted equity-based awards to Robert Moccia in exchange for him accepting employment with the Company as its Chief Executive Officer and President. Same was submitted with the SEC on its Form 8-K filed on March 1, 2021, effective as of the close of trading on March 1, 2021, in accordance with Nasdaq Listing Rule 5635(c)(4).
- A stock option was granted to Mr. Moccia to purchase 1,632,590 shares of the Company’s common stock.
- An option with a strike price of $1.73 per share, vested over a three-year period, would be exercisable.
- An option to purchase 544,198 shares of common stock will vest one year after the date of grant, with 136,049 more options becoming vested every three months after the first option exercised.
- Moccia will be able to exercise the options if he remains at the company until the respective vesting date has occurred.
- Also, the terms and conditions of the award agreement are applicable to the option granted.