Kala Pharmaceuticals Reports Inducement Grant Under NASDAQ Listing Rule 5635(c)(4)

Rhea-AI Summary

Kala Pharmaceuticals (NASDAQ: KALA) announced the grant of non-statutory stock options to a new employee, totaling 40,000 shares. This award, made as an inducement for employment outside the 2017 Equity Incentive Plan, was approved by the Compensation Committee and has an exercise price of $0.33 per share, equal to the stock's closing price on July 18, 2022. The options will vest over four years, beginning with 25% on the first anniversary and the remainder monthly thereafter. Kala is known for its innovative eye therapies, including KPI-012, targeted at rare corneal diseases.

Positive

• Granting of 40,000 stock options shows commitment to attracting talent.
• Exercise price of $0.33 reflects a competitive value based on market performance.
• Vesting schedule incentivizes long-term employee retention.

Negative

• None.

ARLINGTON, Mass., July 22, 2022 (GLOBE NEWSWIRE) -- Kala Pharmaceuticals, Inc. (NASDAQ:KALA), today announced that the Company granted non-statutory stock options to a new employee as an inducement award outside the Company’s 2017 Equity Incentive Plan in accordance with NASDAQ Listing Rule 5635(c)(4).

The Company granted stock options to purchase up to an aggregate of 40,000 shares of Kala Pharmaceuticals common stock to the new employee. The stock options were granted on July 18, 2022. The grant was approved by the Compensation Committee and made as an inducement material to such employee entering into employment with Kala Pharmaceuticals in accordance with NASDAQ Listing Rule 5635(c)(4). The option award has an exercise price of $0.33 per share, the closing price of Kala Pharmaceuticals’ common stock on July 18, 2022. The options have a ten-year term and vest over four years, with 25% of the original number of shares vesting on the first anniversary of the applicable employee’s new hire date and the remainder vesting in equal monthly installments over the following three years. Vesting of the options is subject to the employee’s continued service with Kala Pharmaceuticals through the applicable vesting dates.

About Kala Pharmaceuticals, Inc.
Kala is a clinical-stage biopharmaceutical company dedicated to the research, development and commercialization of innovative therapies for rare diseases of the eye. Kala’s biologics-based investigational therapies utilize Kala’s proprietary Mesenchymal Stem Cell Secretome (MSC-S) platform. Kala’s lead product candidate, KPI-012, is in clinical development for the treatment of persistent corneal epithelial defect (PCED), a rare disease of impaired corneal healing, which has received orphan drug designation from the U.S. Food and Drug Administration. Kala is also targeting KPI-012 for the treatment of Partial Limbal Stem Cell Deficiency and ocular manifestations of moderate-to-severe Sjögren's and plans to initiate preclinical studies to evaluate the utility of its MSC-S platform for retinal degenerative diseases, such as Retinitis Pigmentosa and Stargardt Disease. For more information on Kala, please visit www.kalarx.com.

Investor Contacts:
Hannah Deresiewicz
hannah.deresiewicz@sternir.com
212-362-1200

FAQ

What stock options were granted by Kala Pharmaceuticals on July 22, 2022?

Kala Pharmaceuticals granted 40,000 stock options to a new employee, with an exercise price of $0.33 per share.

What is the vesting schedule for the stock options granted by KALA?

The stock options vest over four years, with 25% vesting on the first anniversary and the remaining shares vesting monthly.

Why did Kala Pharmaceuticals grant stock options outside of its Equity Incentive Plan?

The stock options were granted as an inducement for the new employee to join the company, in accordance with NASDAQ Listing Rule 5635(c)(4).

What is the significance of the stock option exercise price for KALA?

The exercise price of $0.33 per share matches the closing stock price on July 18, 2022, making it a strategic and attractive offer.

What are the future plans for Kala Pharmaceuticals' product candidate, KPI-012?

KPI-012 is in clinical development for treating persistent corneal epithelial defect and is also being evaluated for other ocular conditions.