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 two new employees totaling 16,500 shares. The options, issued on February 12, 2021, have an exercise price of $8.63 per share, equal to the stock's closing price on that date. The vesting schedule allows for 25% to vest after one year, with the remainder vesting monthly over three years, contingent on continued employment. This move aligns with NASDAQ Listing Rule 5635(c)(4) to attract new talent.

Positive

• Stock options granted to new employees help attract talent.
• Vesting schedule 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 16,500 shares of Kala Pharmaceuticals common stock to two new employees. The stock options were granted on February 12, 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 $8.63 per share, the closing price of Kala Pharmaceuticals’ common stock on February 12, 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/20210217005107/en/

FAQ

What stock options were granted by Kala Pharmaceuticals (KALA)?

Kala Pharmaceuticals granted non-statutory stock options to purchase 16,500 shares to new employees.

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

The exercise price of the stock options is $8.63 per share.

When were the stock options granted to new employees at KALA?

The stock options were granted on February 12, 2021.

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

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