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

Rhea-AI Summary

Akebia Therapeutics (Nasdaq: AKBA) announced inducement grants under Nasdaq Listing Rule 5635(c)(4) for five newly-hired employees. The grants include options to purchase a total of 517,000 shares of common stock, with 500,000 shares allocated to Erik Ostrowski, the new CFO and Chief Business Officer. The exercise price for these options is $1.02 per share, matching the closing price on the grant date, June 28, 2024. These options have a 10-year term and vest over four years, with 25% vesting on the first anniversary and the remainder vesting quarterly. The grants are part of Akebia’s inducement award program.

Positive

• Inducement grants to new hires, including key executive Erik Ostrowski, could attract and retain talent.
• Options granted at $1.02 per share, matching the closing price, could provide long-term value if the stock price increases.

Negative

• Potential shareholder dilution from the issuance of 517,000 new shares.

CAMBRIDGE, Mass., July 1, 2024 /PRNewswire/ -- Akebia Therapeutics^®, Inc. (Nasdaq: AKBA), a biopharmaceutical company with the purpose to better the lives of people impacted by kidney disease, granted five newly-hired employees options to purchase an aggregate of 517,000 shares of Akebia's common stock on June 28, 2024, including an option to purchase 500,000 shares to Erik Ostrowski, Akebia's newly hired Chief Financial Officer and Chief Business Officer. The options were granted as an inducement material to each 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 $1.02 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 July 1, 2024?

Akebia Therapeutics announced inducement grants under Nasdaq Listing Rule 5635(c)(4) for five newly-hired employees.

How many shares were granted in the inducement options by Akebia Therapeutics?

Akebia Therapeutics granted options to purchase a total of 517,000 shares of common stock.

Who received the largest grant in Akebia Therapeutics' inducement options?

Erik Ostrowski, the new CFO and Chief Business Officer, received a grant for 500,000 shares.

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

The exercise price for the options is $1.02 per share.

When do the stock options granted by Akebia Therapeutics vest?

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