Nuwellis, Inc. Reports An Inducement Grant Under NASDAQ Listing Rule 5635(c)(4)

Rhea-AI Summary

Nuwellis, Inc. (NASDAQ: NUWE) announced the approval of an equity award under its 2021 Inducement Plan for a new employee, effective September 13, 2021. The award includes an option to purchase 5,965 shares at an exercise price of $4.02, reflecting the stock's closing price on the grant date. The option vests over four years, with 25% vesting after the first year. Nuwellis specializes in medical devices, focusing on the Aquadex SmartFlow® system for treating fluid overload in patients. This award complies with NASDAQ Listing Rule 5635(c)(4), necessitating public notice of non-stockholder approved equity awards.

Positive

• Approval of equity award may attract talent and enhance company performance.
• Equity award aligns employee interest with shareholder value.

Negative

• None.

EDEN PRAIRIE, Minn., Sept. 14, 2021 (GLOBE NEWSWIRE) -- Nuwellis, Inc. (NASDAQ: NUWE), today announced that, effective September 13, 2021, the independent directors approved an equity award under Nuwellis’ 2021 Inducement Plan, as a material inducement to an individual entering into employment with the company. The equity award was approved in accordance with NASDAQ Listing Rule 5635(c)(4), which also requires a public announcement of equity awards that are not made under a stockholder approved equity plan.

In connection with entering into employment with Nuwellis, Inc., the individual, who was not previously an employee or director of Nuwellis, received an option to purchase an aggregate of 5,965 shares of the company’s common stock. The option award has an exercise price of $4.02 per share, the closing price of Nuwellis’ common stock on September 13, 2021, the date of the grant. The option has a ten-year term and vests over a period of four years, with 25% vesting one year after the date of grant and the remaining 75% vesting in 36 approximately equal monthly increments, provided the new hire’s employment is continuing on each such date, and subject to acceleration or forfeiture upon the occurrence of certain events as set forth in the new hire’s option agreement.

About Nuwellis
Nuwellis, Inc. (Nasdaq: NUWE) is a medical device company dedicated to changing the lives of patients suffering from fluid overload through science, collaboration, and innovation. The company is focused on developing, manufacturing, and commercializing the Aquadex SmartFlow® system for ultrafiltration therapy. Nuwellis is headquartered in Minneapolis, Minn., with a wholly-owned subsidiary in Ireland.

About the Aquadex SmartFlow System
The Aquadex SmartFlow system delivers clinically proven therapy using a simple, flexible and smart method of removing excess fluid from patients suffering from hypervolemia (fluid overload). The Aquadex SmartFlow system is indicated for temporary (up to 8 hours) or extended (longer than 8 hours in patients who require hospitalization) use in adult and pediatric patients weighing 20 kg or more whose fluid overload is unresponsive to medical management, including diuretics. All treatments must be administered by a health care provider, within an outpatient or inpatient clinical setting, under physician prescription, both having received training in extracorporeal therapies.

FAQ

What equity award was granted by Nuwellis on September 13, 2021?

Nuwellis approved an equity award for a new employee, consisting of an option to purchase 5,965 shares at an exercise price of $4.02.

What is the vesting schedule for the new equity award at Nuwellis?

The equity award vests over four years, with 25% vesting after one year and the remaining 75% in approximately equal monthly increments.

What is the significance of the NASDAQ Listing Rule 5635(c)(4) in Nuwellis' equity award announcement?

This rule requires public announcements for equity awards not made under stockholder approved plans, ensuring transparency.

How does Nuwellis aim to help patients with its Aquadex SmartFlow system?

The Aquadex SmartFlow system is designed to remove excess fluid from patients suffering from hypervolemia, offering clinically proven therapy.