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

Rhea-AI Summary

CHF Solutions (NASDAQ: CHFS) announced on November 23, 2020, the approval of equity awards for three new hires under its New-Hire Equity Incentive Plan. Effective November 16, 2020, these individuals, who were not prior employees or directors, received options to purchase a total of 1,200 shares at an exercise price of $6.06 per share. The options have a ten-year term and vest over four years, enhancing the company’s talent acquisition strategy. CHF Solutions specializes in ultrafiltration therapy for patients with fluid overload.

Positive

• Equity awards to new hires enhance talent acquisition efforts.
• Options granted at a competitive exercise price of $6.06, reflecting the stock's closing price.

Negative

• None.

EDEN PRAIRIE, Minn., Nov. 23, 2020 (GLOBE NEWSWIRE) -- CHF Solutions, Inc. (NASDAQ: CHFS), today announced that, effective November 16, 2020, the independent directors approved three equity awards under CHF Solution’s New-Hire Equity Incentive Plan, as material inducements to three individuals entering into employment with the company. The equity awards were 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 three individuals, who were not previously employees or directors of CHF Solutions, received options to purchase an aggregate of 1,200 shares of the Company’s common stock. The option awards have an exercise price of $6.06 per share, the closing price of CHF Solution’s common stock on November 16, 2020, the date of the grant. The options have ten-year terms and vest 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 recent equity awards were announced by CHF Solutions?

CHF Solutions announced the approval of equity awards for three new hires totaling 1,200 shares at an exercise price of $6.06.

When were the equity awards granted to new employees of CHF Solutions?

The equity awards were granted on November 16, 2020.

What is the vesting schedule for the options awarded at CHF Solutions?

The options vest over four years, with 25% vesting after one year and the remaining 75% vesting in approximately equal monthly increments.

What is the significance of the NASDAQ Listing Rule 5635(c)(4) in CHF Solutions' announcement?

This rule requires public companies to announce equity awards not made under a stockholder-approved equity plan, ensuring transparency.