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 four new employees as inducement awards outside its 2017 Equity Incentive Plan, following NASDAQ Listing Rule 5635(c)(4). A total of 34,500 stock options were granted on November 13, 2020, with an exercise price of $7.42 per share, matching the closing stock price on that date. The options vest over four years, with 25% vesting on the first anniversary and the remainder in monthly installments, contingent on continued employment.

Positive

• Granting 34,500 stock options as inducement awards to attract new talent.
• Stock options priced at $7.42 align with the company's closing stock value.

Negative

• None.

WATERTOWN, Mass.--(BUSINESS WIRE)--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 34,500 shares of Kala Pharmaceuticals common stock to four new employees. The stock options were granted on November 13, 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 $7.42 per share, the closing price of Kala Pharmaceuticals’ common stock on November 13, 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.