Item 2.02. Results of Operations and Financial Condition.
Spokespersons of Solid Biosciences Inc. (the "Company") plan to present the
information in the presentation attached hereto as Exhibit 99.1 (the
"Presentation") at various meetings beginning on January 9, 2023, including
investor and analyst meetings in connection with the J.P. Morgan Healthcare
Conference. A copy of the presentation is attached as Exhibit 99.1 to this
Current Report on Form 8-K and is incorporated herein by reference.
Although the Company has not finalized its full financial results for the fourth
quarter and fiscal year ended December 31, 2022, the Company disclosed in the
Presentation that it expects to report cash and investments of approximately
$214 million as of December 31, 2022.
The estimated cash and investments figure is preliminary and unaudited,
represents management's estimate as of the date of this report is subject to
completion of the Company's financial closing procedures for the fourth quarter
and fiscal year ended December 31, 2022, and does not present all necessary
information for a complete understanding of the Company's financial condition as
of December 31, 2022, or the Company's results of operations for the year ended
December 31, 2022. The actual financial results may differ materially from the
preliminary estimated financial information.
The information provided under Item 2.02 of this Current Report on
Form 8-K (including Exhibit 99.1) shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), or otherwise subject to the liabilities of that section, nor shall it be
deemed incorporated by reference in any filing under the Securities Act of 1933,
as amended (the "Securities Act"), or the Exchange Act, except as expressly set
forth by specific reference in such a filing.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain
Officers.
On January 6, 2023, the Company's Board of Directors (the "Board") appointed
Kevin Tan as the Company's Chief Financial Officer, effective as of January 9,
2023 (the "Appointment Date"). In connection with his appointment, Mr. Tan will
serve as the Company's principal financial officer and principal accounting
officer.
In connection with Mr. Tan's appointment, Stephen DiPalma, the Company's Interim
Chief Financial Officer and principal financial officer and principal accounting
officer, will cease to serve in such roles, effective as of the Appointment
Date.
Mr. Tan, age 45, served as the Chief Financial Officer at Selecta Biosciences,
Inc., a biopharmaceutical company ("Selecta"), from September 2021 to November
2022. Prior to joining Selecta, Mr. Tan served as Treasurer at Sarepta
Therapeutics, Inc. ("Sarepta"), a biotechnology company, from July 2020 to
September 2021. Prior to becoming Treasurer at Sarepta, he served as Assistant
Treasurer from May 2018 to June 2020. Before joining Sarepta, Mr. Tan worked as
a freelance consultant from February 2017 to April 2018, providing independent
financial advice and advisory services to individuals and private companies.
From June 2012 to November 2016, Mr. Tan served as Senior Portfolio Manager -
Public Market Investments at CPP Investments (f/k/a the Canada Pension Plan
Investment Board). He has also served in various positions at Macquarie Capital
(USA) Inc., Arrowhawk Capital Partners LLC, and Lehman Brothers Inc.
(subsequently acquired by Barclays Capital Inc.). Mr. Tan holds a Bachelor of
Commerce degree from Queen's University at Kingston, as well as a Master of
Engineering degree from The Graduate School at Princeton University, and a
Master of Business Administration degree from the University of Chicago Booth
School of Business.
On January 9, 2023, Mr. Tan entered into an employment agreement with the
Company (the "Employment Agreement"). Pursuant to the Employment Agreement,
Mr. Tan will be entitled to receive an annual base salary of $425,000. His base
salary will be reviewed by the Board from time to time and is subject to change
in the discretion of the Board.
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Under the Employment Agreement, Mr. Tan is also eligible to earn an annual
performance bonus, with a target bonus amount equal to a specified percentage of
his annual base salary, based upon the Board's assessment of his performance and
the Company's attainment of targeted goals as set by the Board in its sole
discretion. The bonus may be in the form of cash, equity award(s), or a
combination of cash and equity. Mr. Tan will be eligible for an annual
discretionary bonus of up to 40% of his base salary. Mr. Tan must be employed on
the date that bonuses are paid in order to receive the bonus, provided that if
he is terminated by the Company without cause (as "cause" is defined in the
Employment Agreement) between January 1 following the performance year and the
date of payment, he will be entitled to the same bonus that he would have
received had he remained employed through the payment date.
Effective as of the Appointment Date and subject to Board approval, the Company
will grant Mr. Tan a nonstatutory stock option (the "Option") to purchase 90,000
shares of the Company's common stock, at an exercise price per share equal to
the closing price of the common stock on the Nasdaq Global Select Market on the
Appointment Date, which will vest as to 25% of the shares underlying the Option
on the first anniversary of the Appointment Date and, following that, as to an
additional 1/48th of the total shares underlying the Option upon his completion
of each additional month of service over the 36-month period measured from the
first anniversary of the Appointment Date. Effective as of the Appointment Date
and subject to Board approval, the Company will also grant Mr. Tan restricted
stock units with respect to 45,000 shares of the Company's common stock (the
"RSU"), which will vest as to 25% of the shares underlying the RSU on each
anniversary of the Appointment Date, subject to continued service. The Option
and the RSU will be granted as an inducement material to Mr. Tan's acceptance of
employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).
The Employment Agreement and the employment of Mr. Tan may be terminated as
follows: (1) upon his death or at the election of the Company due to his
"disability" (as disability is defined in the Employment Agreement); (2) at the
Company's election, with or without "cause"; and (3) at his election, with or
without "good reason" (as good reason is defined in the Employment Agreement).
In the event of the termination of Mr. Tan's employment by the Company without
cause, or by such executive for good reason, prior to or more than twelve months
following a "change in control" (as change in control is defined in the
Employment Agreement), the executive is entitled to receive his base salary that
has accrued and to which he is entitled as of the termination date, to the
extent consistent with Company policy, accrued but unused paid time off through
and including the termination date, unreimbursed business expenses for which
expenses the executive has timely submitted appropriate documentation, and other
amounts or benefits to which the executive is entitled in accordance with the
terms of the benefit plans then-sponsored by the Company (collectively, the
"Accrued Obligations"). In addition, subject to the executive's execution and
nonrevocation of a release of claims in the Company's favor, the executive is
entitled to (1) continued payment of his base salary, in accordance with the
Company's regular payroll procedures, for a period of 12 months and (2) provided
he is eligible for and timely elects to continue receiving group medical
insurance under COBRA and the payments would not result in the violation of
nondiscrimination requirements of applicable law, payment by the Company of the
portion of health coverage premiums the Company pays for similarly-situated,
active employees who receive the same type of coverage, for a period of up to 12
months following his date of termination.
In the event of the termination of Mr. Tan's employment by the Company without
cause, or by such executive for good reason within twelve months following a
change in control, the executive is entitled to receive the Accrued Obligations.
In addition, subject to the executive's execution and nonrevocation of a release
of claims in the Company's favor, the executive is entitled to (1) continued
payment of his base salary, in accordance with the Company's regular payroll
. . .
Item 7.01. Regulation FD Disclosure.
The information contained above in Item 2.02 related to the Presentation is
hereby incorporated by reference into this Item 7.01.
A copy of the Company's press release announcing Mr. Tan's appointment as Chief
Financial Officer is attached as Exhibit 99.2 to this Current Report on Form 8-K
and is incorporated herein by reference.
The information provided under Item 7.01 of this Current Report on Form 8-K
(including Exhibits 99.1 and 99.2) shall not be deemed "filed" for purposes of
Section 18 of the Exchange Act or otherwise subject to the liabilities of that
section, nor shall it be deemed incorporated by reference in any filing under
the Securities Act or the Exchange Act, except as expressly set forth by
specific reference in such a filing.
By providing the information in Item 7.01 of this Current Report on Form 8-K
(including Exhibits 99.1 and 99.2), the Company is not making an admission as to
the materiality of any information herein. The information contained in this
Current Report on Form 8-K is intended to be considered in the context of more
complete information included in the Company's filings with the SEC and other
public announcements that the Company has made and may make from time to time by
press release or otherwise. The Company undertakes no duty or obligation to
update or revise the information contained in this Current Report on Form 8-K,
although it may do so from time to time as its management believes is
appropriate. Any such updating may be made through the filing of other reports
or documents with the SEC, through press releases or through other public
disclosures.
Item 8.01. Other Events.
On January 9, 2023, the Company announced that it anticipates submitting an
investigational new drug application ("IND") for SGT-003 in the second half of
2023 and, subject to IND clearance, initiating patient dosing in late-2023.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number Description
99.1 Solid Biosciences Inc. Presentation January 2023
99.2 Press Release, dated January 9, 2023
104 Cover Page Interactive Data File (formatted as Inline XBRL)
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