Avalo Therapeutics Announces Inducement Grants to New Employees Under Nasdaq Listing Rule 5635(c)(4)

The employee options carry a $15.47 exercise price and vest over time, subject to continued service.

Rhea-AI Summary

Avalo Therapeutics (AVTX) granted inducement stock options covering 101,600 common shares to three new employees on September 25, 2026.

The options have an exercise price of $15.47 per share, equal to the stock’s closing price on the grant date. The Compensation Committee approved the awards under Nasdaq Listing Rule 5635(c)(4). For each employee, 25% of the underlying shares vest on the first anniversary of their employment start date; the balance vests monthly over the following 36 months. Vesting requires continued service through the applicable dates. The awards are subject to Avalo’s 2025 Inducement Award Plan and award agreements.

Positive

• None.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.Options covering 101,600 common shares at a $15.47 exercise price create potential dilution upon exercise.

News Explained

The 101,600 options granted to new employees are rights to purchase shares, not an immediate issuance of those shares; if exercised and shares are issued, the additional shares would reduce existing holders’ percentage ownership.

Key Figures

Options granted: 101,600 shares Exercise price: $15.47 per share Initial vesting: 25% +1 more

Options granted

101,600 shares

Aggregate inducement awards

Exercise price

$15.47 per share

Equal to the common-stock closing price on the grant date

Initial vesting

25%

Underlying shares vest on the employee's one-year employment anniversary

Remaining vesting period

36 months

Remaining underlying shares vest monthly, subject to continued service

Historical Context

1 past event · Latest: Sep 04

1 event

1. Sep 04

   Inducement grants

   24h Move

   +2.5%

   Prior grant covered six new employees and 78,000 options with the same 25%/36-month vesting structure.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

nonstatutory stock options, nasdaq listing rule 5635(c)(4), monoclonal antibody

3 terms

nonstatutory stock options financial

"grants of nonstatutory stock options to purchase an aggregate of 101,600 shares"

A nonstatutory stock option is a company-issued right that lets an employee or contractor buy shares later at a set price, but it does not qualify for special tax breaks. Think of it like a voucher to buy stock at today’s price; when used, the difference between market price and voucher price is taxed as ordinary income to the holder. Investors care because these options create potential share dilution, affect reported compensation costs, and influence employee incentives and cash flow when taxes and withholdings are settled.

nasdaq listing rule 5635(c)(4) regulatory

"in accordance with 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.

monoclonal antibody medical

"lead anti-IL-1β monoclonal antibody (mAb) drug candidate"

A monoclonal antibody is a laboratory-made protein designed to recognize and attach to a specific target in the body, such as a disease-causing substance or cell. It functions like a highly precise lock-and-key tool, helping to treat or detect illnesses. For investors, companies developing monoclonal antibodies can represent promising opportunities in the healthcare sector, especially as these treatments often address unmet medical needs.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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WAYNE, Pa., Sept. 29, 2026 (GLOBE NEWSWIRE) -- Avalo Therapeutics, Inc. (Nasdaq: AVTX), a clinical stage biotechnology company dedicated to developing therapeutics targeting the IL-1β pathway for immune-mediated inflammatory diseases, today announced the grant of inducement equity awards to three new employees. The Compensation Committee of the Board of Directors of Avalo approved the grants of nonstatutory stock options to purchase an aggregate of 101,600 shares of common stock (the “Options”) as inducements material to the employees entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).

The Options were granted on September 25, 2026 and have an exercise price of $15.47 per share, which is equal to the closing price of Avalo’s common stock on the grant date. The Options will vest as to 25% of the underlying shares of common stock on the one-year anniversary of the applicable employee’s start date of employment, and the balance of the underlying shares of common stock vesting monthly thereafter over 36 months, subject to the applicable employee’s continued service relationship with Avalo through the applicable vesting dates. The Options are subject to the terms and conditions of Avalo’s 2025 Inducement Award Plan and award agreements thereunder.

About Avalo Therapeutics

Avalo Therapeutics is a clinical stage biotechnology company dedicated to developing therapeutics targeting the IL-1β pathway for immune-mediated inflammatory diseases. Avalo is advancing its lead anti-IL-1β monoclonal antibody (mAb) drug candidate, abdakibart, into a phase 3 registrational program in hidradenitis suppurativa (HS), a chronic inflammatory skin condition that affects an estimated 1-4% of the population globally. Avalo is pursuing additional development opportunities in IL-1β driven indications. Avalo is also developing AVTX-010, a long-acting next-generation anti-IL-1β mAb. For more information about Avalo, please visit www.avalotx.com.

Forward-Looking Statements

This press release may include forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond Avalo’s control), which could cause actual results to differ from the forward-looking statements. Such statements may include, without limitation, statements with respect to Avalo’s plans, objectives, projections, expectations and intentions and other statements identified by words such as “projects,” “may,” “might,” “will,” “could,” “would,” “should,” “continue,” “seeks,” “aims,” “predicts,” “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “potential,” or similar expressions (including their use in the negative), or by discussions of future matters such as: drug development costs, timing of trials and trial results and other risks, including reliance on investigators and enrollment of patients in clinical trials; reliance on key personnel; regulatory risks; general economic and market risks and uncertainties, including those caused by the war in Ukraine and the Middle East; and those other risks detailed in Avalo’s filings with the Securities and Exchange Commission, available at www.sec.gov. Actual results may differ from those set forth in the forward-looking statements. Except as required by applicable law, Avalo expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Avalo’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

For media and investor inquiries

Jonathan Neely
VP, Head of Investor Relations
jneely@avalotx.com 

or

Meru Advisors
Lauren Glaser
lglaser@meruadvisors.com 

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How many inducement stock options did Avalo Therapeutics grant to new employees?

Avalo granted options to purchase 101,600 common shares to three new employees on September 25, 2026. The exercise price is $15.47 per share, equal to the stock’s closing price on the grant date.

When do Avalo Therapeutics’ new employee inducement options vest?

25% of the underlying shares vest on the first anniversary of each employee’s employment start date, with the balance vesting monthly over the following 36 months. Vesting is subject to the employee’s continued service through the applicable vesting dates.