KalVista Pharmaceuticals Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

KalVista Pharmaceuticals (NASDAQ: KALV) announced the issuance of inducement stock options to a newly-hired employee on June 3, 2024. The compensation committee of the board of directors granted options to purchase 7,000 shares of KalVista common stock. These options are part of the company's Inducement Equity Incentive Plan, granted under Nasdaq Listing Rule 5635(c)(4). The options have an exercise price of $12.11 per share, which matched the closing price on the grant date. One-fourth of the options vest after one year, with the remaining shares vesting monthly over the next three years, contingent on the employee's continued service. Each option has a 10-year term.

Positive

• Granted inducement options for 7,000 shares could attract and retain talent.
• Exercise price of $12.11 aligns with market value, potentially boosting employee morale.
• Structured vesting period encourages long-term commitment from the new employee.

Negative

• Issuing new stock options could lead to potential shareholder dilution.
• No immediate financial benefit as the options vest over an extended period.
• Reliance on future stock price performance might not guarantee employee retention.

CAMBRIDGE, Mass. & SALISBURY, England--(BUSINESS WIRE)-- KalVista Pharmaceuticals, Inc. (NASDAQ: KALV), today announced that the compensation committee of KalVista’s board of directors granted one newly-hired employee inducement options to purchase an aggregate of 7,000 shares of KalVista common stock on June 3, 2024 as inducement material to such employee entering into employment with KalVista. The options were granted in accordance with Nasdaq Listing Rule 5635(c)(4).

The options have an exercise price of $12.11 per share, which was equal to the closing price of KalVista common stock on the grant date. One-fourth of the options vest on the one-year anniversary of the vesting commencement date and the remainder vest in equal monthly installments over the next three years, in each case subject to the new employee’s continued service with the company. Each stock option has a 10-year term and is subject to the terms and conditions of KalVista’s Inducement Equity Incentive Plan and a stock option agreement covering the grant.

About KalVista Pharmaceuticals, Inc.
KalVista Pharmaceuticals, Inc. is a global pharmaceutical company focused on the development and delivery of oral medicines for diseases with significant unmet need. KalVista disclosed positive phase 3 data for the KONFIDENT trial for its oral, on-demand therapy sebetralstat in February 2024. The Company anticipates submitting a new drug application to the U.S. Food and Drug Administration (FDA) for sebetralstat in June 2024 and expects to file for approval in the UK, Europe and Japan later in 2024.

For more information about KalVista, please visit www.kalvista.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240604383516/en/

KalVista Pharmaceuticals, Inc.

Jarrod Aldom

Vice President, Corporate Communications

(201) 705-0254

jarrod.aldom@kalvista.com

Ryan Baker

Head, Investor Relations

(617) 771-5001

ryan.baker@kalvista.com

Source: KalVista Pharmaceuticals, Inc.

FAQ

What did KalVista Pharmaceuticals announce on June 3, 2024?

KalVista Pharmaceuticals announced the issuance of inducement stock options to a newly-hired employee on June 3, 2024.

How many shares were included in the inducement grant by KalVista Pharmaceuticals?

The inducement grant included options to purchase an aggregate of 7,000 shares.

What is the exercise price for the KalVista inducement stock options?

The exercise price for the stock options is $12.11 per share.

What is the vesting schedule for KalVista's inducement stock options?

One-fourth of the options vest on the one-year anniversary, and the remainder vest monthly over the next three years.

What is the term of the stock options granted by KalVista?

Each stock option has a 10-year term.