Akebia Therapeutics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

On April 4, 2023, Akebia Therapeutics (Nasdaq: AKBA) announced the granting of stock options to a new employee, totaling 4,000 shares. The options were provided as an inducement for the employee's recruitment and adhere to Nasdaq Listing Rule 5635(c)(4). The exercise price is set at $0.56 per share, matching the stock's closing price on the grant date. These options will vest over a period of four years, with a quarter vesting on the first anniversary. Each option has a term of ten years and is governed by Akebia's stock option agreement.

Positive

• New employee stock option grants may enhance employee retention and motivation.
• The exercise price aligns with the current market value, demonstrating fair compensation practices.

Negative

• The issuance of stock options could lead to potential dilution of shares if exercised.
• Limited potential for immediate financial impact given the existing low stock price.

CAMBRIDGE, Mass., April 4, 2023 /PRNewswire/ -- Akebia Therapeutics, Inc. (Nasdaq: AKBA), a biopharmaceutical company with the purpose to better the lives of people impacted by kidney disease, granted one newly-hired employee options to purchase an aggregate of 4,000 shares of Akebia's common stock on March 31, 2023, as an inducement material to such employee entering into employment with Akebia. The options were granted in accordance with Nasdaq Listing Rule 5635(c)(4).

The options have an exercise price of $0.56 per share, which is equal to the closing price of Akebia's common stock on the grant date. The stock options vest over four years, with 25% of the shares vesting on the first anniversary of the grant date and the remaining 75% of shares vesting quarterly thereafter, in each case, subject to the new employee's continued service with Akebia. Each stock option has a 10-year term and is subject to the terms and conditions of Akebia's inducement award program and a stock option agreement covering the grant.

About Akebia Therapeutics

Akebia Therapeutics, Inc. is a fully integrated biopharmaceutical company with the purpose to better the lives of people impacted by kidney disease. Akebia was founded in 2007 and is headquartered in Cambridge, Massachusetts. For more information, please visit our website at www.akebia.com, which does not form a part of this release.

Akebia Therapeutics Contact

Mercedes Carrasco
mcarrasco@akebia.com 

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SOURCE Akebia Therapeutics

FAQ

What did Akebia Therapeutics announce on April 4, 2023?

Akebia announced the granting of stock options to a newly-hired employee, totaling 4,000 shares.

What is the exercise price for the stock options granted by Akebia?

The exercise price for the stock options is $0.56 per share.

How do the stock options vest for the new employee at Akebia?

The stock options vest over four years, with 25% vesting on the first anniversary and the remaining 75% vesting quarterly thereafter.

Under which Nasdaq rule were the stock options granted?

The stock options were granted in accordance with Nasdaq Listing Rule 5635(c)(4).

What is the term for the stock options granted by Akebia?

Each stock option has a term of ten years.