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

Rhea-AI Summary

Akebia Therapeutics, a biopharmaceutical company focused on kidney disease, announced on June 3, 2024, that it granted stock options to four newly-hired employees. The options, amounting to 76,000 shares with an exercise price of $1.12 per share, were granted on May 31, 2024, under Nasdaq Listing Rule 5635(c)(4). The stock options vest over four years, with 25% vesting on the first anniversary and the remaining 75% vesting quarterly thereafter. Each option has a 10-year term and is subject to Akebia's inducement award program and stock option agreement.

Positive

• Granting stock options can attract and retain new talent.
• The exercise price matches the closing stock price, potentially aligning employee and shareholder interests.
• Stock options have a long-term vesting period, encouraging employee retention.

Negative

• Issuing stock options can lead to stock dilution for existing shareholders.
• The vesting schedule ties employee retention to long-term performance, which may not be favorable in high turnover environments.

CAMBRIDGE, Mass., June 3, 2024 /PRNewswire/ -- Akebia Therapeutics, Inc. (Nasdaq: AKBA), a biopharmaceutical company with the purpose to better the lives of people impacted by kidney disease, granted 4 newly-hired employees options to purchase an aggregate of 76,000 shares of Akebia's common stock on May 31, 2024, as inducements 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 $1.12 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, Inc.

FAQ

What is the exercise price of the stock options granted by Akebia Therapeutics?

The exercise price of the stock options is $1.12 per share.

How many shares are covered under the stock options granted by Akebia Therapeutics?

The stock options cover an aggregate of 76,000 shares.

When were the stock options granted by Akebia Therapeutics?

The stock options were granted on May 31, 2024.

What is the vesting schedule for Akebia Therapeutics' stock options?

25% of the shares vest on the first anniversary of the grant date, with the remaining 75% vesting quarterly thereafter over four years.

How long is the term for the stock options granted by Akebia Therapeutics?

Each stock option has a 10-year term.