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 ten new employees as inducement awards apart from its 2017 Equity Incentive Plan, complying with NASDAQ Listing Rule 5635(c)(4). The options, totaling 70,000 shares, were granted on October 18, 2021, with an exercise price of $1.85 per share. The options have a ten-year term and vest over four years, with 25% vesting after the first year. This move aims to attract and retain talent while aligning employee incentives with shareholder interests.

Positive

• Stock options granted to ten new employees, potentially enhancing talent retention.
• Options have a long ten-year term, providing employees with extended time to benefit.

Negative

• None.

WATERTOWN, Mass., Oct. 22, 2021 (GLOBE NEWSWIRE) -- Kala Pharmaceuticals, Inc. (NASDAQ:KALA), today announced that the Company granted non-statutory stock options to new employees as inducement awards 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 70,000 shares of Kala Pharmaceuticals common stock to ten new employees. The stock options were granted on October 18, 2021. The grants were approved by the Compensation Committee and were made as an inducement material to each employee entering into employment with Kala Pharmaceuticals in accordance with NASDAQ Listing Rule 5635(c)(4). The option awards have an exercise price of $1.85 per share, the closing price of Kala Pharmaceuticals’ common stock on October 18, 2021. 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 each option is subject to such employee’s continued service with Kala Pharmaceuticals through the applicable vesting dates.

About Kala Pharmaceuticals, Inc.
Kala is a commercial-stage biopharmaceutical company focused on the discovery, development, and commercialization of innovative therapies for diseases of the eye. Kala has applied its AMPPLIFY® mucus-penetrating particle (MPP) Drug Delivery Technology to two ocular therapies, EYSUVIS® (loteprednol etabonate ophthalmic suspension) 0.25% for the short-term (up to two weeks) treatment of signs and symptoms of dry eye disease and INVELTYS® (loteprednol etabonate ophthalmic suspension) 1% for the treatment of post-operative inflammation and pain following ocular surgery. The Company also has a pipeline of pre-clinical development programs targeted to address unmet medical needs, including both front and back of the eye diseases. For more information on Kala, please visit www.kalarx.com.

Investor Contacts:
Jill Steier
jill.steier@kalarx.com
781-810-4086

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

FAQ

What is the significance of Kala Pharmaceuticals' stock option grant for new employees?

The stock option grant aims to attract and retain talent while aligning employee interests with shareholders.

How many shares were granted in the stock option award by Kala Pharmaceuticals?

Kala Pharmaceuticals granted stock options to purchase up to 70,000 shares to new employees.

What was the exercise price for the stock options granted by Kala Pharmaceuticals?

The exercise price for the stock options was set at $1.85 per share.

When were the stock options granted by Kala Pharmaceuticals?

The stock options were granted on October 18, 2021.

What is the vesting schedule for the stock options granted by Kala Pharmaceuticals?

The options vest over four years, with 25% vesting on the first anniversary of employment and the remainder vesting in equal monthly installments.