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

Rhea-AI Summary

Kala Pharmaceuticals, Inc. (NASDAQ: KALA) announced the grant of non-statutory stock options to two new employees as inducement awards outside the Company’s 2017 Equity Incentive Plan. A total of 8,000 stock options were granted on January 15, 2021, at an exercise price of $7.49 per share. The options have a ten-year term and vest over four years, with 25% vesting at the first anniversary of employment. This move complies with NASDAQ Listing Rule 5635(c)(4) and aims to incentivize new hires as they join Kala Pharmaceuticals.

Positive

• Granting of stock options is a strategic move to attract and retain talent.
• Options vesting structure encourages employee retention over four years.

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 8,000 shares of Kala Pharmaceuticals common stock to two new employees. The stock options were granted on January 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 $7.49 per share, the closing price of Kala Pharmaceuticals’ common stock on January 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210120005014/en/

FAQ

What stock options did Kala Pharmaceuticals grant?

Kala Pharmaceuticals granted non-statutory stock options to purchase up to 8,000 shares to two new employees.

When were the stock options granted by Kala Pharmaceuticals?

The stock options were granted on January 15, 2021.

What is the exercise price of the stock options for Kala Pharmaceuticals?

The exercise price for the stock options is $7.49 per share.

What is the vesting schedule for the stock options at Kala Pharmaceuticals?

The stock options vest over four years, with 25% vesting on the first anniversary of employment and the remainder vesting monthly over the following three years.

What is the purpose of granting stock options at Kala Pharmaceuticals?

The stock options are intended as inducements for new employees to join Kala Pharmaceuticals in accordance with NASDAQ regulations.