AEye Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

AEye, Inc. (NASDAQ: LIDR) announced an inducement equity award for new CEO Matthew Fisch. The grant includes 5,000,000 service-based and 2,000,000 performance-based restricted stock units (RSUs). The service-based RSUs will vest in increments, starting March 15, 2023. The performance-based RSUs are tied to the stock price reaching $1.20 for ten consecutive trading days before March 1, 2024. If the stock does not meet this condition, those RSUs will be forfeited. AEye specializes in software-defined lidar solutions aimed at enhancing vehicle autonomy and safety in various applications.

Positive

• Inducement equity award aligns CEO's interests with shareholder performance.
• Significant number of RSUs could motivate the CEO to enhance stock value.

Negative

• Performance-based RSUs are contingent on stock price increases, presenting a risk of forfeiture.

DUBLIN, Calif.--(BUSINESS WIRE)-- AEye, Inc. (NASDAQ: LIDR), a global leader in adaptive, high-performance lidar solutions, today announced the grant of an inducement equity award to its newly appointed Chief Executive Officer, Matthew Fisch. The description of the grant was included in Mr. Fisch’s offer letter, described in the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on February 1, 2023, and approved by the Company’s board of directors as a material inducement to Mr. Fisch entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).

Mr. Fisch received, as an inducement grant for his employment, an incentive award of 5,000,000 service-based restricted stock units and 2,000,000 performance-based restricted stock units (collectively, the “RSUs”). The service-based RSUs will vest as follows: 500,000 on March 15, 2023, 1,125,000 on February 15, 2024 and then in equal installments over the next twelve (12) calendar quarters on the 15th day of the second month of each calendar quarter. The performance-based RSUs will vest quarterly over six (6) calendar quarters on the 15th day of the second month of each calendar quarter after the closing price of the Company’s common stock, as reported by NASDAQ (or other recognized national exchange on which the Company’s common stock is then traded), meets or exceeds $1.20 per share (adjusted for any stock splits or other corporate actions) for any ten (10) consecutive trading days prior to March 1, 2024. If such condition is not satisfied, the performance-based RSUs will be forfeited.

About AEye

AEye’s unique software-defined lidar solution enables advanced driver-assistance, vehicle autonomy, smart infrastructure, logistics, and off-highway applications that save lives and propel the future of transportation and mobility. AEye’s 4Sight™ Intelligent Sensing Platform, with its adaptive sensor-based operating system, focuses on what matters most: delivering faster, more accurate, and reliable information. AEye’s 4Sight™ products, built on this platform, are ideal for dynamic applications which require precise measurement imaging to ensure safety and performance. AEye has a global presence through its offices in Germany, Japan, Korea, and the United States.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230213005140/en/

Clyde Montevirgen

AEye, Inc.

cmontevirgen@aeye.ai

925-400-4366

Source: AEye, Inc.

FAQ

What was announced about AEye, Inc. on February 13, 2023?

AEye, Inc. announced an inducement equity award to its new CEO Matthew Fisch, including service-based and performance-based RSUs.

What are the vesting conditions for Matthew Fisch's RSUs?

Service-based RSUs will vest quarterly starting March 15, 2023. Performance-based RSUs vest only if the stock price exceeds $1.20 for ten consecutive trading days prior to March 1, 2024.

How many RSUs did CEO Matthew Fisch receive?

Matthew Fisch received a total of 7,000,000 RSUs: 5,000,000 service-based and 2,000,000 performance-based.

What is the stock symbol for AEye, Inc.?

The stock symbol for AEye, Inc. is LIDR.