Aardvark Therapeutics Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Aardvark Therapeutics (Nasdaq: AARD) announced inducement equity awards for six newly hired employees under its 2025 Inducement Equity Incentive Plan on February 9 and February 11, 2026.

Five employees received options for an aggregate 147,213 shares on February 9 at an exercise price of $13.48; one employee received 5,125 shares on February 11 at $12.67. Options vest over four years (25% after one year, then monthly 1/48th), with exercise prices equal to the closing share price on each grant date, and were granted as inducements under Nasdaq Listing Rule 5635(c)(4).

Key Figures

New employees (Feb 9): 5 employees New employee (Feb 11): 1 employee Inducement options (Feb 9): 147,213 shares +5 more

8 metrics

New employees (Feb 9) 5 employees Inducement stock option awards on February 9, 2026

New employee (Feb 11) 1 employee Inducement stock option award on February 11, 2026

Inducement options (Feb 9) 147,213 shares Aggregate stock options granted to five new employees

Inducement options (Feb 11) 5,125 shares Stock option granted to one new employee

Exercise price (Feb 9) $13.48 Option strike equal to closing price on February 9, 2026

Exercise price (Feb 11) $12.67 Option strike equal to closing price on February 11, 2026

Vesting term 4 years Inducement options vest over four years, time-based

Cliff vesting portion 25% Vests on one-year employment anniversary before monthly vesting

Market Reality Check

Price: $12.10 Vol: Volume 62,776 is light at...

low vol

$12.10 Last Close

Volume Volume 62,776 is light at 0.39x the 20-day average of 160,300 shares. low

Technical Shares at $12.27 are trading slightly above the $12.05 200-day moving average and well below the $19.58 52-week high.

Peers on Argus

AARD fell 3.08% while peers were mixed: CABA gained 9.62%, KYTX slipped 2.52%, a...

1 Up 1 Down

AARD fell 3.08% while peers were mixed: CABA gained 9.62%, KYTX slipped 2.52%, and others were modestly down. Momentum data showed KYTX up and ACTU down, supporting a stock-specific narrative rather than a coordinated biotech move.

Historical Context

5 past events · Latest: Feb 10 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 10	Clinical protocol update	Positive	-6.5%	Amended Phase 3 HERO protocol lowering minimum age to 7 in U.S.
Dec 10	Clinical trial progress	Positive	+2.1%	First HERO Phase 3 patient dosed in Australia and global enrollment updates.
Nov 25	Investor conferences	Neutral	+3.2%	Participation in two December healthcare investor conferences with webcasts.
Nov 13	Earnings and pipeline	Positive	+1.2%	Q3 2025 results, strong cash position, and ARD-101/ARD-201 pipeline updates.
Nov 11	Inducement option grant	Neutral	-3.0%	Single-employee inducement stock option grant under 2025 plan.

Pattern Detected

Clinical and corporate updates have produced mixed reactions, with some positive pipeline news sold off while earnings and conference updates saw modest gains.

Recent Company History

Over the past few months, Aardvark reported multiple milestones. A Nov 13, 2025 earnings update highlighted $126.4M in cash and progress in the HERO and POWER programs, with a small positive stock reaction. Clinical-trial updates on HERO, including protocol amendments and geographic expansion, drew both positive (+2.12%) and negative (-6.45%) moves. Prior inducement grants under Nasdaq Listing Rule 5635(c)(4) on Nov 10, 2025 coincided with a -2.98% reaction, suggesting equity awards have not historically been a strong positive catalyst.

Market Pulse Summary

This announcement details standard inducement stock option grants under Nasdaq Listing Rule 5635(c)(...

Analysis

This announcement details standard inducement stock option grants under Nasdaq Listing Rule 5635(c)(4), including 147,213 and 5,125 share awards at exercise prices of $13.48 and $12.67. It follows recent clinical and regulatory events around the Phase 3 HERO trial and leadership changes disclosed in recent filings. Investors may track how ongoing option grants interact with the company’s cash position, clinical timelines such as the targeted Q3 2026 readout, and execution on its broader metabolic disease pipeline.

Key Terms

nasdaq listing rule 5635(c)(4), stock options, inducement awards, equity incentive plan, +2 more

6 terms

nasdaq listing rule 5635(c)(4) regulatory

"inducement grants under Nasdaq Listing Rule 5635(c)(4)"

NASDAQ Listing Rule 5635(c)(4) is a rule that requires a company to get approval from its shareholders before selling a large amount of its shares, usually over 20%. This helps protect investors by making sure the company doesn't flood the market with new shares without their say, which could lower the stock's value.

stock options financial

"were granted inducement awards consisting of stock options to purchase"

Stock options are agreements that give a person the right to buy or sell a company's stock at a specific price within a certain time frame. They are often used as a reward or incentive, similar to a coupon that can be used later if the stock price rises, allowing the holder to make a profit.

inducement awards financial

"five new employees were granted inducement awards consisting of stock options"

Inducement awards are special bonuses given to new employees to encourage them to join a company, often in the form of stock or money. They matter because they can motivate talented people to choose one company over another and help align their success with the company's growth. Think of it like a signing bonus to seal the deal.

equity incentive plan financial

"pursuant to the Aardvark Therapeutics, Inc. 2025 Inducement Equity Incentive Plan"

An equity incentive plan is a program that gives employees, executives or directors the right to receive company stock or options to buy stock as part of their pay. Think of it as offering slices of future company profit to motivate people to boost long‑term performance; for investors it matters because it can align employee goals with shareholder value but also increases the number of shares outstanding, which can dilute existing ownership.

exercise price financial

"The exercise price of each option is equal to the closing price"

The exercise price is the fixed amount at which you can buy or sell an asset, like a stock, when using an options contract. It matters because it helps determine whether exercising the option will be profitable or not, depending on the current market price. Think of it as the set price you agree on today to buy or sell later.

vesting financial

"Each option will vest over four years, with 25% of the total number of shares vesting"

Vesting is the process by which you earn full ownership of something, like company stock or a retirement benefit, over time. It’s like earning the right to keep a gift piece by piece the longer you stay with a company, making sure employees stay committed before they receive all the benefits.

AI-generated analysis. Not financial advice.

SAN DIEGO, Feb. 13, 2026 (GLOBE NEWSWIRE) -- Aardvark Therapeutics, Inc. (Aardvark) (Nasdaq: AARD), a clinical-stage biopharmaceutical company focused on developing novel, small-molecule therapeutics to activate innate homeostatic pathways for the treatment of metabolic diseases, today announced that (i) on February 9, 2026, five new employees were granted inducement awards consisting of stock options to purchase an aggregate of 147,213 shares of common stock and (ii) on February 11, 2026, one new employee was granted an inducement award consisting of a stock option to purchase 5,125 shares of common stock.  

Each option was granted pursuant to the Aardvark Therapeutics, Inc. 2025 Inducement Equity Incentive Plan and was granted as an inducement material to each employee’s employment with Aardvark in accordance with Nasdaq Listing Rule 5635(c)(4). 

The exercise price of each option is equal to the closing price of Aardvark’s common stock on the date of grant, or $13.48 and $12.67 on February 9, 2026 and February 11, 2026, respectively. Each option will vest over four years, with 25% of the total number of shares vesting on the one-year anniversary of the date of commencement of such employee’s employment with Aardvark and 1/48^th of the total number of shares subject to each option vesting monthly thereafter, subject to continued employment. 

About Aardvark Therapeutics, Inc. 
Aardvark is a clinical-stage biopharmaceutical company developing novel, small-molecule therapeutics designed to suppress hunger for the treatment of Prader-Willi Syndrome (PWS) and metabolic diseases. Hunger, which is the discomfort from not having eaten recently, is a distinct neural signaling pathway separate from appetite, the reward-seeking desire for food. Our programs explore therapeutic applications in hunger-associated indications and potential complementary uses with anti-appetite therapies. Our lead compound, oral ARD-101, is in Phase 3 clinical development for the treatment of hyperphagia associated with PWS, a rare disease characterized by insatiable hunger. Aardvark is also developing ARD-201, a planned fixed-dose combination of ARD-101 with a DPP-4 inhibitor, through two separate Phase 2 trials with a goal of addressing some of the limitations of currently marketed GLP-1 therapies for obesity and obesity-related conditions. For more information, visit www.aardvarktherapeutics.com.    

Investor Contact: 
Courtney Mogerley 
Argot Partners 
(212) 600-1902 
Aardvark@Argotpartners.com  

Media Contact:
Andrea Cohen
Sam Brown LLC
(917) 209-7163
Andreacohen@Sambrown.com 

FAQ

What inducement grants did Aardvark (AARD) announce on February 13, 2026?

Aardvark granted stock options totaling 152,338 shares to six new employees as inducement awards. According to Aardvark, five employees were granted 147,213 options on February 9 and one employee 5,125 options on February 11, 2026.

What were the exercise prices for the Aardvark (AARD) inducement options granted in February 2026?

The exercise prices equaled the closing stock prices on each grant date: $13.48 and $12.67. According to Aardvark, the February 9 grants used $13.48 and the February 11 grant used $12.67 per share.

How do the Aardvark (AARD) inducement options vest for new employees?

Options vest over four years with 25% after one year, then monthly 1/48th thereafter. According to Aardvark, vesting is subject to continued employment and measured from each employee's start date.

Why were the Aardvark (AARD) option grants made under Nasdaq Listing Rule 5635(c)(4)?

The awards were granted as inducement material to employment under Nasdaq Listing Rule 5635(c)(4). According to Aardvark, the grants comply with that rule permitting equity inducements for newly hired executives and employees.

Do the Aardvark (AARD) inducement grants create immediate dilution for shareholders?

The grants create potential future dilution equal to the options' 152,338 shares if exercised. According to Aardvark, exercise depends on later vesting and exercise decisions, so immediate outstanding share counts are unchanged until exercise.