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

Rhea-AI Summary

On September 1, 2021, Akebia Therapeutics (Nasdaq: AKBA) announced the granting of stock options to nine new employees, totaling 89,000 shares. The options, with an exercise price of $2.94 per share, align with Nasdaq Listing Rule 5635(c)(4) and will vest over four years. 25% will vest on the first anniversary, with the remainder vesting quarterly, contingent on continued service. This strategic move is aimed at incentivizing new hires in the biopharmaceutical sector focused on kidney disease.

Positive

• Granting of options may help attract and retain talent, aligning employee performance with shareholder value.
• The exercise price of $2.94 is equal to the closing stock price, reflecting fair valuation.

Negative

• None.

CAMBRIDGE, Mass., Sept. 1, 2021 /PRNewswire/ -- Akebia Therapeutics, Inc. (Nasdaq: AKBA), a biopharmaceutical company with the purpose to better the lives of people impacted by kidney disease, granted nine newly-hired employees options to purchase an aggregate of 89,000 shares of Akebia's common stock on August 31, 2021, 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 $2.94 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 is the recent stock option grant by Akebia Therapeutics?

Akebia Therapeutics granted options for 89,000 shares to nine new employees on August 31, 2021, to incentivize their roles.

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

The exercise price for the stock options is set at $2.94 per share, equal to the closing stock price on the grant date.

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

The stock 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 granted as inducements for new employees, aligning their interests with the company's performance.

What is the significance of Nasdaq Rule 5635(c)(4) for Akebia?

Nasdaq Rule 5635(c)(4) allows for the granting of stock options to new employees as a part of their employment inducement.