CHF Solutions, Inc. Reports Inducement Grants Under NASDAQ Listing Rule 5635(c)(4)

Rhea-AI Summary

CHF Solutions, Inc. (NASDAQ: CHFS) announced an equity award as a material inducement for a new hire, approved by independent directors on February 17, 2021. The individual received an option to purchase 300 shares of common stock at an exercise price of $9.46 per share, the closing price on the grant date. The option has a ten-year term and will vest over four years. CHF Solutions focuses on developing and commercializing the Aquadex SmartFlow® system for ultrafiltration therapy, aimed at patients suffering from fluid overload.

Positive

• Approval of equity award demonstrates commitment to attracting talent.
• New hire awarded stock options could align interests with shareholders.

Negative

• None.

EDEN PRAIRIE, Minn., March 05, 2021 (GLOBE NEWSWIRE) -- CHF Solutions, Inc. (NASDAQ: CHFS), today announced that, effective February 17, 2021, the independent directors approved one equity award under CHF Solution’s New-Hire Equity Incentive Plan, as material inducement to an individual entering into employment with the company. The equity award was approved in accordance with NASDAQ Listing Rule 5635(c)(4), which also requires a public announcement of equity awards that are not made under a stockholder approved equity plan.

In connection with entering into employment with CHF Solutions, the individual, who was not previously an employee or director of CHF Solutions, received an option to purchase an aggregate of 300 shares of the Company’s common stock. The option award has an exercise price of $9.46 per share, the closing price of CHF Solution’s common stock on February 17, 2021, the date of the grant. The option has a ten-year term and vests over a period of four years, with 25% vesting one year after the date of grant and the remaining 75% vesting in 36 approximately equal monthly increments, provided the new hire’s employment is continuing on each such date, and subject to acceleration or forfeiture upon the occurrence of certain events as set forth in the new hire’s option agreement.

About CHF Solutions
CHF Solutions, Inc. (Nasdaq:CHFS) is a medical device company dedicated to changing the lives of patients suffering from fluid overload through science, collaboration, and innovation. The company is focused on developing, manufacturing, and commercializing the Aquadex SmartFlow® system for ultrafiltration therapy. CHF Solutions is a Delaware corporation headquartered in Minneapolis, Minnesota with wholly owned subsidiaries in Australia and Ireland. The company has been listed on the Nasdaq Capital Market since February 2012.

About the Aquadex SmartFlow System
The Aquadex SmartFlow system delivers clinically proven therapy using a simple, flexible and smart method of removing excess fluid from patients suffering from hypervolemia (fluid overload). The Aquadex SmartFlow system is indicated for temporary (up to 8 hours) or extended (longer than 8 hours in patients who require hospitalization) use in adult and pediatric patients weighing 20 kg or more whose fluid overload is unresponsive to medical management, including diuretics. All treatments must be administered by a health care provider, within an outpatient or inpatient clinical setting, under physician prescription, both having received training in extracorporeal therapies.

FAQ

What equity award did CHF Solutions approve?

CHF Solutions approved an equity award consisting of an option to purchase 300 shares of common stock at an exercise price of $9.46 per share.

When was the equity award approved for CHF Solutions?

The equity award was approved on February 17, 2021.

What is the purpose of the equity award at CHF Solutions?

The equity award serves as a material inducement for a new employee entering the company.

What is the Aquadex SmartFlow system?

The Aquadex SmartFlow system is a medical device for ultrafiltration therapy, designed to remove excess fluid from patients suffering from fluid overload.

How long does the option vest for the new hire at CHF Solutions?

The option awarded to the new hire vests over a period of four years.