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

Rhea-AI Summary

Fate Therapeutics, a clinical-stage biopharmaceutical company focused on induced pluripotent stem cell (iPSC)-derived cellular immunotherapies, announced employee inducement awards under Nasdaq Listing Rule 5635(c)(4). On July 1, 2024, the company granted restricted stock units (RSUs) totaling 28,200 shares of common stock to three newly-hired non-executive employees. These grants were approved by the Compensation Committee and will vest over four years, with 25% vesting annually, contingent on the employees' continuous employment.

Positive

• Granted 28,200 RSUs to new hires, potentially enhancing employee retention and motivation.
• Approval by the Compensation Committee ensures compliance with corporate governance standards.

Negative

• Issuing 28,200 RSUs could lead to potential shareholder dilution.

SAN DIEGO, July 02, 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 diseases, today announced that on July 1, 2024 the Company granted restricted stock units (RSUs) representing 28,200 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 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 diseases. 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 did Fate Therapeutics announce on July 2, 2024?

Fate Therapeutics announced the granting of 28,200 restricted stock units to three newly-hired employees.

What is the vesting schedule for the RSUs granted by Fate Therapeutics?

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

Why did Fate Therapeutics grant RSUs to new employees?

The RSUs were granted as an inducement material to attract new employees, in accordance with Nasdaq Listing Rule 5635(c)(4).

How many shares were included in the RSUs granted by Fate Therapeutics?

Fate Therapeutics granted RSUs representing 28,200 shares of common stock.

What is the significance of the Compensation Committee's approval for the RSUs?

The Compensation Committee's approval ensures the grants comply with corporate governance standards and Nasdaq Listing Rule 5635(c)(4).