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

Rhea-AI Summary

Nuwellis, Inc. (NASDAQ: NUWE) announced on June 22, 2021, that independent directors approved four equity awards as an inducement for new hires. The awards consist of options to purchase a total of 46,737 shares at an exercise price of $3.98 per share, aligned with the market close on the grant date. The options carry a ten-year term and will vest over four years, with 25% vesting after one year. This decision adheres to NASDAQ Listing Rule 5635(c)(4), necessitating public disclosure of such equity awards.

Positive

• Approval of equity awards for new hires indicates strategic growth through talent acquisition.
• The equity plan aims to align new employees' interests with shareholders.

Negative

• Equity awards may lead to dilution of existing shareholder value.
• The necessity for public announcement under NASDAQ rules suggests ongoing scrutiny of company practices.

EDEN PRAIRIE, Minn., June 24, 2021 (GLOBE NEWSWIRE) -- Nuwellis, Inc. (NASDAQ: NUWE), today announced that, effective June 22, 2021, the independent directors approved four equity awards under Nuwellis’ 2021 Inducement Plan, as material inducement to four individuals entering into employment with the company. The equity awards were 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 individuals, who were not previously employees or directors of Nuwellis, received options to purchase an aggregate of 46,737 shares of the Company’s common stock. The option awards have an exercise price of $3.98 per share, the closing price of Nuwellis’ common stock on June 22, 2021, the date of the grant. The options have a ten-year term and vest 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 a Delaware corporation headquartered in Minneapolis, Minnesota with a wholly owned subsidiary in Ireland. The company has been listed on the Nasdaq Capital Market since February 2012.

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 awards were approved by Nuwellis on June 22, 2021?

Nuwellis approved options to purchase 46,737 shares at $3.98 per share as inducement for new hires.

What is the vesting schedule for the equity awards approved by Nuwellis?

The options vest over four years, with 25% vesting after one year and the rest in approximately equal monthly increments.

Why did Nuwellis announce equity awards for new employees?

The announcement fulfills NASDAQ Listing Rule 5635(c)(4), which requires public disclosure of equity awards not made under a stockholder-approved plan.

What is the significance of the exercise price set at $3.98 for Nuwellis' equity awards?

The exercise price of $3.98 reflects the closing price of Nuwellis' common stock on the grant date, June 22, 2021.