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

Rhea-AI Summary

Nuwellis, Inc. (NASDAQ: NUWE) announced on August 24, 2021, that independent directors approved equity awards for four new hires under the 2021 Inducement Plan. These awards, as per NASDAQ Listing Rule 5635(c)(4), consisted of options to purchase a total of 42,345 shares of common stock at an exercise price of $4.57 per share, equal to the closing price on the grant date. The options have a ten-year term, vesting over four years, contingent on continued employment. Nuwellis focuses on the Aquadex SmartFlow system for treating fluid overload in patients.

Positive

• Approval of equity awards for four new hires could enhance talent acquisition and operational capacity.
• The equity awards are structured to incentivize long-term employment.

Negative

• The issuance of new stock options may lead to potential dilution of existing shares.

EDEN PRAIRIE, Minn., Aug. 24, 2021 (GLOBE NEWSWIRE) -- Nuwellis, Inc. (NASDAQ: NUWE), today announced that, effective August 18, 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 42,345 shares of the company’s common stock. The option awards have an exercise price of $4.57 per share, the closing price of Nuwellis’ common stock on August 18, 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 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 awards were approved by Nuwellis on August 24, 2021?

Nuwellis approved options to purchase 42,345 shares of common stock at $4.57 per share for four new hires.

How long is the vesting period for the new equity awards at Nuwellis?

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

What is Nuwellis focused on?

Nuwellis focuses on the development of the Aquadex SmartFlow system for managing fluid overload.

What are the implications of the new equity awards for Nuwellis shareholders?

The new equity awards may lead to dilution of existing shares, affecting shareholder value.