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

Rhea-AI Summary

Akebia Therapeutics, Inc. (Nasdaq: AKBA) announced on July 2, 2020, the grant of stock options to six newly-hired employees totaling 320,000 shares, including 280,000 shares for David Spellman, the new CFO. These options were granted as inducements for employment and comply with Nasdaq Listing Rule 5635(c)(4). The options have an exercise price of $13.58 per share, reflecting the stock's closing price on the grant date, and will vest over four years.

Positive

• Granting of 320,000 stock options to new employees is a strategic move to attract talent.
• The exercise price aligns with the closing stock price, indicating fair valuation.

Negative

• None.

CAMBRIDGE, Mass., July 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 six newly-hired employees options to purchase an aggregate of 320,000 shares of Akebia's common stock on June 30, 2020, including an option to purchase 280,000 shares granted to David Spellman, Akebia's newly-hired Senior Vice President, Chief Financial Officer. The options were granted 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 $13.58 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 did Akebia Therapeutics announce on July 2, 2020?

Akebia Therapeutics announced the grant of stock options to six new employees, totaling 320,000 shares.

How many shares were granted to David Spellman, the new CFO?

David Spellman was granted an option to purchase 280,000 shares.

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

The exercise price is $13.58 per share.

What is the vesting schedule for the stock options granted?

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

What is the significance of Nasdaq Listing Rule 5635(c)(4) regarding the stock options?

The options were granted as inducements material to the new employees' hiring, in accordance with this Nasdaq rule.