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

Rhea-AI Summary

Kala Pharmaceuticals (NASDAQ:KALA) announced on August 18, 2021, the granting of non-statutory stock options to eight new employees as inducement awards outside its 2017 Equity Incentive Plan, in compliance with NASDAQ Listing Rule 5635(c)(4). A total of 78,000 stock options were granted at an exercise price of $3.03 per share, the closing price on the grant date. The options have a ten-year term, vesting over four years, with 25% vesting on the first anniversary and the remainder vesting monthly thereafter, contingent upon continued employment.

WATERTOWN, Mass., Aug. 18, 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 78,000 shares of Kala Pharmaceuticals common stock to eight new employees. The stock options were granted on August 13, 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 $3.03 per share, the closing price of Kala Pharmaceuticals’ common stock on August 13, 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 stock option grant date for Kala Pharmaceuticals?

The stock options were granted on August 13, 2021.

How many shares were granted to new employees by Kala Pharmaceuticals?

Kala Pharmaceuticals granted stock options to purchase up to an aggregate of 78,000 shares.

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

The exercise price for the stock options is $3.03 per share.

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

The options vest over four years: 25% on the first anniversary and the rest in equal monthly installments over the following three years.

Which rule allows Kala Pharmaceuticals to grant stock options as inducement awards?

The grants were made in accordance with NASDAQ Listing Rule 5635(c)(4).