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

Rhea-AI Summary

Akebia Therapeutics (Nasdaq: AKBA) announced on October 2, 2020 that it granted stock options to 11 new employees as an inducement for joining the company. The options amount to 84,000 shares with an exercise price of $2.51 per share, coinciding with the stock's closing price on the grant date. The options vest over four years, with 25% vesting on the first anniversary and the remainder quarterly, contingent on the employee’s service. This move is in compliance with Nasdaq Listing Rule 5635(c)(4).

Positive

• Company granted options for 84,000 shares, potentially aligning employee interests with shareholder value.
• Options vesting schedule promotes employee retention over four years.

Negative

• None.

CAMBRIDGE, Mass., Oct. 2, 2020 /PRNewswire/ -- Akebia Therapeutics, Inc. (Nasdaq: AKBA), a biopharmaceutical company with the purpose to better the lives of people impacted by kidney disease, granted 11 newly-hired employees options to purchase an aggregate of 84,000 shares of Akebia's common stock on September 30, 2020, as inducements material to each such employee's 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 $2.51 per share, which is equal to the closing price of Akebia's common stock on the grant date. Each stock option vests 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 the company. Each stock option has a 10-year term and is subject to the terms and conditions of the company'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. The Company 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
Kristen K. Sheppard, Esq.
ir@akebia.com 

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SOURCE Akebia Therapeutics

FAQ

What stock options were granted by Akebia Therapeutics on October 2, 2020?

Akebia Therapeutics granted options to purchase 84,000 shares to 11 new employees on October 2, 2020.

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

The exercise price of the stock options is $2.51 per share.

How do the stock options vest for Akebia's new employees?

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

Why did Akebia Therapeutics issue stock options?

The stock options were issued as inducements to encourage new employees to join the company.

Which rule did Akebia follow to grant stock options?

Akebia granted the stock options in accordance with Nasdaq Listing Rule 5635(c)(4).