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

Rhea-AI Summary

Kala Pharmaceuticals, Inc. (NASDAQ:KALA) has granted non-statutory stock options to 46 new employees, totaling 233,500 shares, as inducement awards outside its 2017 Equity Incentive Plan. The options were issued on December 15, 2020, with an exercise price of $7.63, corresponding to the closing stock price on that date. Vesting occurs over four years, with 25% vesting on the first anniversary and the remainder monthly thereafter. This grant aligns with NASDAQ Listing Rule 5635(c)(4) and supports the firm's commitment to attract talent in the biopharmaceutical sector focused on ocular therapies.

Positive

• Grant of stock options may enhance employee retention and motivation.
• Approval of stock options shows commitment to expanding the workforce as the company grows.

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 233,500 shares of Kala Pharmaceuticals common stock to forty-six new employees. The stock options were granted on December 15, 2020. 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 $7.63 per share, the closing price of Kala Pharmaceuticals’ common stock on December 15, 2020. 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 Drug Delivery Technology to a corticosteroid, loteprednol etabonate (LE), designed for ocular applications, resulting in the October 2020 approval of EYSUVIS^TM (loteprednol etabonate ophthalmic suspension) 0.25% for the short-term (up to two weeks) treatment of signs and symptoms of dry eye disease and the January 2019 launch of INVELTYS^® (loteprednol etabonate ophthalmic suspension) 1% for the treatment of post-operative inflammation and pain following ocular surgery.

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FAQ

What stock options were granted by Kala Pharmaceuticals?

Kala Pharmaceuticals granted non-statutory stock options to purchase 233,500 shares to 46 new employees on December 15, 2020.

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

The exercise price for the granted stock options was $7.63 per share.

How long is the term for KALA's stock options?

The stock options have a ten-year term.

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

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

Why were the stock options granted by Kala Pharmaceuticals?

The stock options were granted as inducement awards to attract and retain new employees in accordance with NASDAQ Listing Rule 5635(c)(4).