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 five new employees, totaling 64,500 shares. This award was made outside the 2017 Equity Incentive Plan in compliance with NASDAQ Listing Rule 5635(c)(4). The options, which vest over four years, were approved by the Compensation Committee and have an exercise price of $5.70 per share, reflecting the closing stock price on June 15, 2021. This move is aimed at incentivizing new hires as the company continues its focus on developing innovative therapies for eye diseases.

Positive

• Granting stock options could enhance employee motivation and retention.
• Stock options are priced at the current market rate ($5.70), aligning interests of employees and shareholders.

Negative

• None.

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 64,500 shares of Kala Pharmaceuticals common stock to five new employees. The stock options were granted on June 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 $5.70 per share, the closing price of Kala Pharmaceuticals’ common stock on June 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 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.

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FAQ

What stock options were granted by Kala Pharmaceuticals on June 15, 2021?

Kala Pharmaceuticals granted non-statutory stock options for 64,500 shares to five new employees.

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

The exercise price is $5.70 per share, the closing price on the grant date.

How long do the stock options from Kala Pharmaceuticals last?

The stock options have a ten-year term.

How do the stock options vest for KALA employees?

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