Fate Therapeutics Implements Inducement Award Program to Attract Top Talent and Secures Funding for Innovative Cellular Immunotherapies

Published / Modified Apr 02 2024
CSIMarket Team / CSIMarket.com

Fate Therapeutics Reports New Employee Inducement Award Under Nasdaq Listing Rule 5635(c)(4)

Fate Therapeutics, a clinical-stage biopharmaceutical company specializing in induced pluripotent stem cell (iPSC)-derived cellular immunotherapies for cancer and autoimmune disorders, recently announced the granting of restricted stock units (RSUs) to a newly-hired non-executive employee.
This move was approved by the Compensation Committee of the Company's Board of Directors and granted under the Amended and Restated Inducement Equity Plan.
The RSUs represent 6,400 shares of Fate Therapeutics' common stock and will vest over a period of four years.
The vesting will occur on each anniversary of the grant date, with 25% of the shares underlying each RSU award becoming vested.
However, the employee must remain continuously employed by the company to receive the shares.

In addition to this new employee inducement award, Fate Therapeutics recently made headlines for other significant developments.
First, the company announced the pricing of an underwritten offering of 14,545,454 shares of its common stock at $5.50 per share.
This offering involved participation from both new and existing institutional investors, including Adage Capital Partners LP., Boxer Capital, Deep Track Capital, OrbiMed, Suvretta Capital, and a life-sciences focused investor.
This move aimed to secure funding to support the development of the company's pipeline of iPSC-derived cellular immunotherapies.

Furthermore, Fate Therapeutics granted a non-qualified stock option to another newly-hired employee, allowing them to purchase 40,000 shares of the company's common stock at an exercise price of $7.74 per share.
This option was also granted under the Amended and Restated Inducement Equity Plan and will vest over a four-year period.
Twenty-five percent of the option will vest on the one-year anniversary of the grant date, with the remaining 75% vesting in equal monthly installments over the following thirty-six months.
Similar to the RSUs, the employee must remain continuously employed by the company to fully benefit from this stock option.

These recent developments highlight Fate Therapeutics' efforts to attract and retain talented individuals to drive the advancement of their innovative cellular immunotherapies.
The inducement awards not only serve as a strong incentive for new employees but also demonstrate the company's commitment to aligning employee interests with long-term success.
By leveraging the Nasdaq Listing Rule 5635(c)(4), which allows inducement awards to be granted outside of shareholder-approved plans, Fate Therapeutics can effectively attract and motivate new talent.

As of the writing of this article, Fate Therapeutics' stock price stands at $7.08.
While there has been a 25.18% improvement in the stock price compared to the previous year, the recent inducement award and funding from institutional investors through the underwritten offering signify the confidence in the company's potential for future growth.

Overall, Fate Therapeutics' recent announcement of a new employee inducement award, along with their successful underwritten offering and stock option grants, showcase their commitment to both attracting talented individuals and securing funding to advance their pipeline of iPSC-derived cellular immunotherapies.


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