Helius Medical Technologies, Inc. Reports Inducement Grant Under Nasdaq Listing Rule 5635(C)(4)

Rhea-AI Summary

Helius Medical Technologies (HSDT) announced the approval of an equity award under its 2021 Inducement Plan, as a material inducement for a new employee effective September 13, 2022. The award comprises an option to purchase 10,000 shares at an exercise price of $0.54 per share, matching the closing price on the grant date. The option vests over four years, with 25% vesting annually. Helius is focused on neurological wellness and has developed the Portable Neuromodulation Stimulator (PoNS), aimed at treating gait deficits from conditions like multiple sclerosis.

Positive

• Equity award granted for new hire to incentivize employee retention.
• Option to purchase shares at current market price may motivate employee performance.
• Helius continues to advance in neurological wellness with the PoNS device.

Negative

• The necessity for equity awards may indicate challenges in attracting talent without additional incentives.
• Limited financial performance metrics provided in the PR may raise concerns about overall company health.

NEWTOWN, Pa., Sept. 14, 2022 (GLOBE NEWSWIRE) -- Helius Medical Technologies, Inc. (Nasdaq: HSDT) (“Helius” or the “Company”), a neurotech company focused on neurological wellness, today announced that, effective September 13, 2022, its compensation committee approved an equity award under Helius’ 2021 Inducement Plan, as a 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 Helius, the individual, who was not a previous employee or director of Helius, received an option to purchase 10,000 shares of the Company’s Class A common stock. The option award has an exercise price of $0.54 per share, the closing price of Helius’ common stock on September 13, 2022, the date of the grant. The option has a ten-year term and vests over a period of four years, with 25% vesting on each of the first, second, third and fourth anniversary of September 1, 2022, 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 Helius Medical Technologies, Inc.

Helius Medical Technologies is a leading neurotech company in the medical device field focused on neurologic deficits using non-implantable platform technologies that amplify the brain’s ability to compensate and promote neuroplasticity, improving the lives of people dealing with neurologic diseases.

The Company’s first commercial product is the Portable Neuromodulation Stimulator (PoNS^®). For more information, visit www.heliusmedical.com.

About the PoNS Device and PoNS Therapy™

The Portable Neuromodulation Stimulator (PoNS) is an innovative non-surgical medical device, inclusive of a controller and mouthpiece, which delivers electrical stimulation to the surface of the tongue to improve balance and gait. The PoNS device is indicated for use in the United States as a short-term treatment of gait deficit due to mild-to-moderate symptoms from multiple sclerosis (“MS”) and is to be used as an adjunct to a supervised therapeutic exercise program in patients 22 years of age and over by prescription only. Helius is advancing PoNS post-approval research in MS through a recently launched Therapeutic Experience Program (TEP) designed to partner with neurologists and neurorehabilitation therapists at 10-12 US centers of excellence, who express an interest in becoming “early adopters” of PoNS therapy. For more information visit www.ponstherapy.com.

PoNS is also authorized for sale in Canada for two indications: (i) PoNS is authorized as a short-term treatment (14 weeks) of chronic balance deficit due to mild-to-moderate traumatic brain injury (“mmTBI”) and is to be used in conjunction with physical therapy; and (ii) PoNS is authorized for use as a short term treatment (14 weeks) of gait deficit due to mild and moderate symptoms from MS and is to be used in conjunction with physical therapy. PoNS is also authorized for sale in Australia for short term use by healthcare professionals as an adjunct to a therapeutic exercise program to improve balance and gait.

Investor Relations Contact

Lisa M. Wilson, In-Site Communications, Inc.
T: 212-452-2793
E: lwilson@insitecony.com

FAQ

What is the recent equity award announced by Helius Medical Technologies (HSDT)?

Helius Medical Technologies announced an equity award of an option to purchase 10,000 shares at $0.54 per share, effective September 13, 2022.

What is the vesting schedule for the new equity award granted by HSDT?

The option vests over four years, with 25% vesting on each anniversary of September 1, 2022.

What is the significance of the equity award for Helius Medical Technologies (HSDT)?

The equity award serves as a material inducement for a new employee, aimed at enhancing retention and aligning interests with the company.

What is the current price of Helius Medical Technologies (HSDT) stock related to the equity award?

The exercise price for the equity award is set at $0.54 per share, the closing price on the grant date.