TELA Bio Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

TELA Bio, Inc. (NASDAQ: TELA) announced on February 25, 2022, the approval of stock options for 17 newly hired employees, totaling 63,800 shares. The options have an exercise price of $11.75 per share, reflecting the closing price on the grant date. These options are part of the employment agreement and will vest over four years, with 25% vesting after the first year and the rest monthly. TELA focuses on innovative soft-tissue reconstruction solutions that enhance clinical outcomes while preserving patients' anatomy.

Positive

• Inducement grants of 63,800 stock options to new employees signal growth and expansion.
• Stock options are set at a competitive exercise price of $11.75, aligning employee interests with shareholder value.
• Vesting schedule encourages employee retention and long-term commitment.

Negative

• None.

MALVERN, Pa., Feb. 25, 2022 (GLOBE NEWSWIRE) -- TELA Bio, Inc. ("TELA") (NASDAQ: TELA), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's own anatomy, today announced that the Compensation Committee of the Board of Directors of TELA approved inducement grants of stock options to purchase an aggregate of 63,800 shares of its common stock to 17 newly-hired employees, with a grant date of February 23, 2022 (the "Grant Date"). The stock options were granted pursuant to the Nasdaq Rule 5635(c)(4) inducement grant exception as a component of each individual's employment compensation and were granted as an inducement material to his or her acceptance of employment with TELA.

The stock options have an exercise price equal to $11.75 per share, the closing price of TELA's common stock as reported on the Nasdaq Global Market on the Grant Date. The stock options have a ten-year term and vest over four years, with 25% of the shares underlying the stock option vesting on the first anniversary of the Grant Date and the remaining 75% of the shares vesting in equal monthly installments over 36 months thereafter, subject to each individual's continued service with TELA through the applicable vesting dates.

About TELA Bio, Inc.

TELA Bio, Inc. (NASDAQ: TELA) is a commercial-stage medical technology company focused on providing innovative technologies that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's own anatomy. The Company is committed to providing surgeons with advanced, economically effective soft-tissue reconstruction solutions that leverage the patient's natural healing response while minimizing long-term exposure to permanent synthetic materials. For more information, visit www.telabio.com.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations are forward-looking statements and reflect the current beliefs of TELA's management. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors that could cause actual results and events to differ materially and adversely from those indicated by such forward-looking statements. These risks and uncertainties are described more fully in the "Risk Factors" section and elsewhere in our filings with the Securities and Exchange Commission and available at www.sec.gov, including in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Any forward-looking statements that we make in this announcement speak only as of the date of this press release, and TELA assumes no obligation to update forward-looking statements whether as a result of new information, future events or otherwise after the date of this press release, except as required under applicable law.

Investor Contact
Greg Chodaczek
332-895-3230
ir@telabio.com   

FAQ

What stock options did TELA Bio grant to employees?

TELA Bio granted stock options to purchase 63,800 shares to 17 newly hired employees, with an exercise price of $11.75.

When were the stock options granted by TELA Bio?

The stock options were granted on February 23, 2022.

How long is the vesting period for TELA Bio's stock options?

The stock options vest over four years, with 25% vesting on the first anniversary and the remainder monthly.

What is the purpose of the stock options granted by TELA?

The stock options were granted as part of employment compensation to incentivize new hires to join TELA.

Under what rule did TELA grant the stock options?

The stock options were granted under the Nasdaq Rule 5635(c)(4) inducement grant exception.