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

Rhea-AI Summary

Helius Medical Technologies (HSDT) announced the approval of equity awards to two new employees as part of its 2021 Inducement Plan, effective February 16, 2022. This follows Nasdaq Listing Rule 5635(c)(4), requiring public announcements for non-stockholder approved equity awards. The new hires received options to purchase a total of 2,000 shares at $4.68 each, valid for ten years, with a four-year vesting period. Helius specializes in neurotech solutions and is focused on improving neurologic conditions through its innovative PoNS device.

Positive

• Approval of equity awards for two new hires strengthens the company's talent base.
• The exercise price of equity awards aligns with the current market price, indicating no immediate dilution risk.

Negative

• Equity awards may dilute existing shareholders' equity over time.
• Approval of non-stockholder equity awards could raise concerns regarding governance and shareholder rights.

NEWTOWN, Pa., Feb. 17, 2022 (GLOBE NEWSWIRE) -- Helius Medical Technologies, Inc. (Nasdaq: HSDT) (“Helius” or the “Company”), a neurotech company focused on neurological wellness, today announced that, effective February 16, 2022, its compensation committee approved equity awards under Helius’ 2021 Inducement Plan, as a material inducement to two 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 Helius, the two individuals, who were not previous employees or directors of Helius, received options to purchase an aggregate of 2,000 shares of the Company’s Class A common stock. The option awards have an exercise price of $4.68 per share, the closing price of Helius’ common stock on February 16, 2022, the date of the grant. The options have a ten-year term and vest over a period of four years, with 25% vesting on each of the first, second, third and fourth anniversary of each individual’s hire date, 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.

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 purpose of Helius Medical Technologies' equity awards announced on February 17, 2022?

The equity awards serve as a material inducement for two new employees joining Helius, aligning with Nasdaq Listing Rule 5635(c)(4).

How many shares were awarded to the new employees of Helius Medical Technologies?

The new employees received options to purchase an aggregate of 2,000 shares of Helius’ Class A common stock.

What is the exercise price for the equity awards given to Helius' new hires?

The exercise price for the equity awards is $4.68 per share.

What does Helius Medical Technologies specialize in?

Helius Medical Technologies specializes in neurotech solutions to enhance neurologic wellness, particularly through its PoNS device.

What is the vesting period for the equity awards given to Helius' new employees?

The options have a vesting period of four years, with 25% vesting each year.