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

Rhea-AI Summary

Kala Pharmaceuticals (NASDAQ:KALA) announced on December 17, 2021, the grant of non-statutory stock options to four new employees, totaling 13,500 shares. The options were issued as inducement awards outside the 2017 Equity Incentive Plan and have an exercise price of $1.44 per share, reflecting the stock's closing price on the grant date. Options will vest over four years, with 25% vesting after the first year and the rest in monthly installments, contingent on continued employment.

Positive

• Grant of stock options to four new employees indicates confidence in hiring talent.
• Stock options priced at the current market value may align employee incentives with shareholder interests.

Negative

• None.

WATERTOWN, Mass., Dec. 17, 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 13,500 shares of Kala Pharmaceuticals common stock to four new employees. The stock options were granted on December 15, 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 $1.44 per share, the closing price of Kala Pharmaceuticals’ common stock on December 15, 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% and INVELTYS® (loteprednol etabonate ophthalmic suspension) 1%. The Company also has a pipeline of development programs including a clinical-stage secretome product candidate, KPI-012, initially targeting persistent corneal epithelial defects (PCED) and multiple proprietary new chemical entity (NCE) preclinical 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 stock options were granted by Kala Pharmaceuticals on December 15, 2021?

Kala Pharmaceuticals granted stock options to purchase 13,500 shares to four new employees as inducement awards.

What is the exercise price for the stock options granted by KALA?

The exercise price for the stock options is $1.44 per share, the closing price on the grant date.

How long do the stock options granted by KALA last?

The stock options have a ten-year term from the grant date.

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

25% of the stock options vest on the first anniversary of the hire date, with the remainder vesting monthly over three years.