Verrica Pharmaceuticals Inc. (NASDAQ:VRCA), a company specializing in pharmaceutical preparations with a market capitalization of $86 million, has announced the appointment of David Zawitz as its new Chief Operating Officer and principal operating officer, effective today. This strategic move comes after a thorough selection process by the company's Board of Directors.
According to InvestingPro data, the company currently trades at $0.95 per share and appears undervalued based on Fair Value analysis, though it faces significant challenges with negative EBITDA of -$73.4 million in the last twelve months.
Mr. Zawitz, 43, brings a wealth of experience to Verrica Pharmaceuticals at a crucial time. InvestingPro analysis reveals the company is quickly burning through cash and faces weak gross profit margins of -146%. He has been with PBM Capital Group, LLC since 2018, where he served as Executive Vice President and Secretary since March 2021.
His previous roles include Assistant General Counsel and Assistant Secretary at CarMax (NYSE:KMX), Inc., and positions at Bingham McCutchen LLP and McKee Nelson LLP. Mr. Zawitz holds a B.S.C. in Commerce from the University of Virginia, a J.D. from the University of Virginia School of Law, and is a CFA® charterholder.
In line with his appointment, Zawitz has entered into an offer letter with Verrica Pharmaceuticals that outlines the terms of his employment. His annual base salary is set at $250,000, with eligibility for a target annual bonus of 40% of his base salary, at the discretion of the Board.
He will also have access to the company's employee and executive benefit plans. For detailed analysis of VRCA's financial health and executive compensation trends, investors can access comprehensive research reports on InvestingPro, which covers over 1,400 US stocks with expert insights and detailed metrics.
Additionally, the Compensation Committee of the Board approved an option grant for Mr. Zawitz to purchase 950,000 shares of the company's common stock under the company’s 2024 Inducement Plan, effective as of the grant date. The options will vest over a period, with an accelerated vesting schedule in the event of a company change in control, contingent upon Mr. Zawitz's continuous service.
Furthermore, the Board has approved an amendment to the Inducement Plan to increase the number of shares of common stock reserved for issuance from 2,000,000 to 4,500,000 shares. This amendment, which was adopted without stockholder approval pursuant to Nasdaq Listing Rule 5635(c)(4), leaves the company with 1,550,000 shares of common stock available for future awards.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.