Equillium Reports Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Equillium, Inc. (Nasdaq: EQ), a clinical-stage biotechnology company focused on developing novel therapeutics for severe autoimmune and inflammatory disorders, has announced an inducement grant to a new employee. The Compensation Committee of Equillium's Board of Directors granted a nonstatutory stock option to purchase 10,000 shares of common stock under the company's 2024 Inducement Plan on August 30, 2024.

The stock option has an exercise price of $1.07 per share, equal to Equillium's closing stock price on the grant date. It will vest over four years, with 25% vesting on the one-year anniversary and the remaining balance vesting monthly over 36 months, subject to the employee's continued service. This grant was approved in accordance with Nasdaq Listing Rule 5635(c)(4) as an inducement material to the new employee's employment.

Positive

• Equillium is attracting new talent with stock-based compensation
• The company has a structured vesting schedule to retain employees

Negative

• The stock price of $1.07 per share indicates a low market valuation
• The inducement grant may lead to potential dilution for existing shareholders

LA JOLLA, Calif.--(BUSINESS WIRE)-- Equillium, Inc. (Nasdaq: EQ), a clinical-stage biotechnology company focused on developing novel therapeutics to treat severe autoimmune and inflammatory disorders, today announced that on August 30, 2024, the Compensation Committee of Equillium’s Board of Directors granted an inducement award consisting of a nonstatutory stock option to purchase 10,000 shares of common stock to a new employee under Equillium’s 2024 Inducement Plan. The Compensation Committee approved the stock option as an inducement material to the new employee’s employment in accordance with Nasdaq Listing Rule 5635(c)(4).

The stock option has an exercise price per share equal to $1.07, Equillium’s closing stock price on August 30, and will vest over four years, with 25% of the underlying shares vesting on the one-year anniversary of the applicable vesting commencement date and the balance of the underlying shares vesting monthly thereafter over 36 months, subject to the new employee’s continued service relationship with Equillium through the applicable vesting dates. The stock option is subject to the terms and conditions of Equillium’s 2024 Inducement Plan and the terms and conditions of an applicable stock option agreement covering the grant.

About Equillium

Equillium is a clinical-stage biotechnology company leveraging a deep understanding of immunobiology to develop novel therapeutics to treat severe autoimmune and inflammatory disorders with high unmet medical need. The company’s pipeline consists of the following novel first-in-class immunomodulatory assets and product platform targeting immuno-inflammatory pathways. EQ101: a selective tri-specific cytokine inhibitor targeting IL-2, IL-9, and IL-15; recently announced positive results from a Phase 2 proof-of-concept clinical study of patients with alopecia areata. EQ302: an orally delivered, selective bi-specific cytokine inhibitor targeting IL-15 and IL-21; currently in pre-clinical development. The multi-cytokine platform: generates rationally designed composite peptides that selectively block key cytokines at the shared receptor level targeting pathogenic cytokine redundancies and synergies while preserving non-pathogenic signaling. Itolizumab: a monoclonal antibody that targets the CD6-ALCAM signaling pathway which plays a central role in the modulation of effector T cells; currently under evaluation in a Phase 3 clinical study of patients with acute graft-versus-host disease (aGVHD) and announced positive data from a Phase 1b clinical study of patients with lupus/lupus nephritis in April 2024. Equillium acquired rights to itolizumab through an exclusive partnership with Biocon Limited and has entered a strategic partnership with Ono Pharmaceutical Co., Ltd., for the development and commercialization of itolizumab under an option and asset purchase agreement.

For more information, visit www.equilliumbio.com.

Forward Looking Statements

Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate", "believe", “could”, “continue”, "expect", "estimate", “may”, "plan", "outlook", “future” and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Because such statements are subject to risks and uncertainties, many of which are outside of Equillium’s control, actual results may differ materially from those expressed or implied by such forward-looking statements. Risks that contribute to the uncertain nature of the forward-looking statements include: Equillium’s ability to execute its plans and strategies; risks related to performing clinical studies; and whether the results from clinical studies will validate and support the safety and efficacy of Equillium’s product candidates. These and other risks and uncertainties are described more fully under the caption "Risk Factors" and elsewhere in Equillium's filings and reports, which may be accessed for free by visiting the Securities and Exchange Commission’s website at www.sec.gov and on Equillium’s website under the heading “Investors.” Investors should take such risks into account and should not rely on forward-looking statements when making investment decisions. All forward-looking statements contained in this press release speak only as of the date on which they were made. Equillium undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240904409372/en/

Investor Contact

Michael Moore

Vice President, Investor Relations & Corporate Communications

619-302-4431

ir@equilliumbio.com

Source: Equillium, Inc.

FAQ

What type of inducement grant did Equillium (EQ) announce on August 30, 2024?

Equillium (EQ) announced a nonstatutory stock option grant to purchase 10,000 shares of common stock under its 2024 Inducement Plan.

What is the exercise price of the stock option granted by Equillium (EQ)?

The stock option has an exercise price of $1.07 per share, which was Equillium's closing stock price on August 30, 2024.

How does the vesting schedule work for Equillium's (EQ) inducement grant?

The stock option vests over four years, with 25% vesting on the one-year anniversary and the remaining balance vesting monthly over 36 months, subject to continued employment.

Under which Nasdaq rule was Equillium's (EQ) inducement grant approved?

The inducement grant was approved in accordance with Nasdaq Listing Rule 5635(c)(4).