The stock of AVROBIO, Inc. (AVRO) slightly declined in the current market following the news of its announcement of inducement grants under the NASDAQ listing rule. The stock of AVRO is valued at $2.25 in the current market losing around 1.75% from the previously closed value. At the end of the last trading session, the stock of AVRO closed at $2.29. The volume of the stock traded in the last trading session was approximately 689.99K shares.
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Reason for the AVRO stock decline
AVROBIO, Inc. (AVRO) announced inducement grants according to the NASDAQ listing rule 5635(4) in a press release. They announced that the company has granted a non-statutory stock option to the three new employees as a part of inducement awards of the company. They have granted a stock option for the purchase of up to a total of 30,500 common stock shares of AVROBIO, Inc. (AVRO). It was approved by the Board of Directors of the company. The price per share of the common stock is decided at $4.04.
On 3rd January 2022, the stock options were granted by the company. It will have a 10-year term and ownership control over 4 years. The 25 percent of the original number of shares ownership control will be transferred on the first anniversary of the employees’ new hire date and the remainder ownership control in equal monthly installments over the following 3 years. Ownership control of the stocks depends on the continued employment with AVROBIO by the employee through the applicable ownership control period.
Effect on the stock decline
The news of the grant of common stock shares to the three new employees adversely affected the stock of the company. The decision was made in accordance with the NASDAQ’s listing rules. The decline will be quite temporary but is not in the favor of the company if its ownership dilutes, even slightly.
Conclusion
The company should focus on the further development of the company as the decline in the stock is not long-term. It will be gone in a matter of time but what really affects the stock is the performance of the company.
