Fate Therapeutics Reports New Employee Inducement Awards Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Fate Therapeutics, a clinical-stage biopharmaceutical company focusing on iPSC-derived cellular immunotherapies for cancer and autoimmune disorders, announced new employee inducement awards under Nasdaq Listing Rule 5635(c)(4). On June 1, 2024, the company granted a non-qualified stock option to one new employee to purchase a total of 65,000 shares at an exercise price of $3.68 per share, the closing price on May 31, 2024. Additionally, Fate Therapeutics granted restricted stock units (RSUs) representing 14,500 shares to three new non-executive employees. These grants were approved by the Compensation Committee and are part of the company's Amended and Restated Inducement Equity Plan. Both the stock options and RSUs will vest over four years, contingent on continuous employment.

Positive

• Granted stock options and RSUs can help attract and retain talent.
• The exercise price of $3.68 per share aligns with the market closing price, potentially avoiding immediate valuation discrepancies.
• Vesting schedule encourages long-term employee retention.

Negative

• Issuing additional shares can lead to shareholder dilution.
• The company's reliance on stock incentives may indicate challenges in attracting talent through salary alone.
• No immediate financial gains from these grants, as they are contingent on long-term employment.

SAN DIEGO, June 04, 2024 (GLOBE NEWSWIRE) -- Fate Therapeutics, Inc. (NASDAQ: FATE), a clinical-stage biopharmaceutical company dedicated to bringing a first-in-class pipeline of induced pluripotent stem cell (iPSC)-derived cellular immunotherapies to patients with cancer and autoimmune disorders, today announced that on June 1, 2024 the Company granted (i) a non-qualified stock option to one newly-hired employee to purchase a total of 65,000 shares of the Company’s common stock at an exercise price per share of $3.68, which was the closing price per share of the Company’s common stock as reported by NASDAQ on May 31, 2024, the last date preceding the grant effective date for which a closing price was reported, and (ii) restricted stock units (RSUs) representing 14,500 shares of its common stock to three newly-hired non-executive employees. The grants were approved by the Compensation Committee of the Company’s Board of Directors and granted under the Company’s Amended and Restated Inducement Equity Plan as an inducement material to the new employees entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4). The option will vest over four years, with 25% of the shares underlying the option vesting on the one-year anniversary of the grant date and the remaining 75% percent vesting in approximately equal monthly installments over the following thirty-six months, subject to the employee being continuously employed by the Company through each vesting date. The RSUs will vest over four years, with 25% of the shares underlying each RSU award vesting on each anniversary of the grant date, subject to the employee being continuously employed by the Company through each vesting date.

About Fate Therapeutics’ iPSC Product Platform
The Company’s proprietary induced pluripotent stem cell (iPSC) product platform enables mass production of off-the-shelf, multiplexed-engineered cell products that are selectively designed, incorporate novel synthetic controls of cell function, and are intended to deliver multiple mechanisms of therapeutic importance to patients. Human iPSCs possess the unique dual properties of unlimited self-renewal and differentiation potential into all cell types of the body. The Company’s platform combines multiplexed engineering and single-cell selection of human iPSCs to create clonal master iPSC lines. Analogous to master cell lines used to mass produce biopharmaceutical drug products such as monoclonal antibodies, the Company utilizes its clonal master iPSC lines as a renewable cell source to manufacture multiplexed-engineered cell products which are well-defined and uniform in composition, can be stored in inventory for off-the-shelf availability, can be combined and administered with other therapies, and can potentially reach a broad patient population. As a result, the Company’s platform is uniquely designed to overcome numerous limitations associated with the manufacture of cell therapies using patient- or donor-sourced cells. Fate Therapeutics’ iPSC product platform is supported by an intellectual property portfolio of over 400 issued patents and 450 pending patent applications.

About Fate Therapeutics, Inc.
Fate Therapeutics is a clinical-stage biopharmaceutical company dedicated to bringing a first-in-class pipeline of induced pluripotent stem cell (iPSC)-derived cellular immunotherapies to patients with cancer and autoimmune disorders. Using its proprietary iPSC product platform, the Company has established a leadership position in creating multiplexed-engineered iPSC lines and in the manufacture and clinical development of off-the-shelf, iPSC-derived cell products. The Company’s pipeline includes iPSC-derived natural killer (NK) cell and T-cell product candidates, which are selectively designed, incorporate novel synthetic controls of cell function, and are intended to deliver multiple therapeutic mechanisms to patients. Fate Therapeutics is headquartered in San Diego, CA. For more information, please visit www.fatetherapeutics.com.

Contact:
Christina Tartaglia
Precision AQ
212.362.1200
christina.tartaglia@precisionaq.com

FAQ

What stock options did Fate Therapeutics grant on June 1, 2024?

Fate Therapeutics granted a non-qualified stock option to a new employee to purchase 65,000 shares at an exercise price of $3.68 per share.

What are restricted stock units (RSUs) granted by Fate Therapeutics?

On June 1, 2024, Fate Therapeutics granted RSUs representing 14,500 shares to three new non-executive employees.

What is the vesting schedule for Fate Therapeutics' stock options?

The stock options will vest over four years, with 25% vesting on the first anniversary and the remaining 75% vesting in equal monthly installments over the next three years.

What is the vesting schedule for Fate Therapeutics’ RSUs?

The RSUs will vest over four years, with 25% of the shares vesting on each anniversary of the grant date.

How do the new employee inducement awards impact Fate Therapeutics’ stock?

The grants can attract and retain talent but may result in shareholder dilution due to the issuance of additional shares.