Scholar Rock Reports New Employee Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Scholar Rock (NASDAQ: SRRK; the “Company”), a late-stage biopharmaceutical company focused on advancing innovative treatments for spinal muscular atrophy, cardiometabolic disorders, and other serious diseases where protein growth factors play a fundamental role, today announced that the company granted inducement equity awards on March 11, 2024, covering an aggregate of 201,469 shares of its common stock to six newly hired employees, consisting of inducement stock options to purchase an aggregate of 115,125 shares of common stock and inducement restricted stock units, covering an aggregate of 86,344 shares of its common stock. The company also announced that it granted inducement equity awards on January 19, 2024, covering an aggregate of 87,500 shares of its common stock to one newly hired employee, consisting of inducement stock options to purchase an aggregate of 50,000 shares of common stock and inducement restricted stock units, covering an aggregate of 37,500 shares of its common stock.

The awards are subject to all terms and conditions and other provisions set forth in the Company’s 2022 Inducement Equity Plan (the “Plan”) and the award agreements thereunder.

The Plan, which was initially adopted by the Company’s board of directors on June 16, 2022, and amended on September 4, 2022, February 3, 2023 and January 25, 2024 is used exclusively for the grant of equity awards to individuals who were not previously employees of Scholar Rock, or following a bona fide period of non-employment, as an inducement material to such individuals entering into employment with Scholar Rock, pursuant to Nasdaq Listing Rule 5635(c)(4).

The inducement stock options issued on January 19, 2024 have an exercise price of $15.06 and the inducement stock options issued on March 11, 2024 have an exercise price of $16.28, which is equal to the closing price of Scholar Rock’s common stock on January 19, 2024 and March 11, 2024, respectively. The inducement stock options will vest with respect to 25% of the shares of common stock underlying the award on the first anniversary of each employee’s start date, and the remaining 75% of the shares of common stock underlying the inducement stock options will vest in 12 equal quarterly installments thereafter. Vesting for the inducement restricted stock units will be in four equal annual installments. All vesting related to inducement awards is subject to the employees’ continuing service at the Company through the applicable vesting date.