Cabaletta Bio Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

The employee awards vest over four years and carry exercise prices matching the closing share prices on three specified dates.

Rhea-AI Summary

Cabaletta Bio (Nasdaq: CABA) granted inducement stock options to four newly hired non-executive employees as an incentive to begin employment. The awards cover 200,000 shares at $2.46, 100,000 shares at $2.00 and 85,000 shares at $2.00. Each exercise price matches the Nasdaq closing share price on September 21, September 28 and October 2, 2026, respectively.

Each option has a 10-year term and vests over four years: 25% on the first grant anniversary, followed by 12 equal quarterly installments. The awards were approved under Nasdaq Listing Rule 5635(c)(4) and are subject to the 2025 Inducement Plan and their option agreements.

Positive

• None.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.Options covering 200,000 shares at $2.46 per share create potential dilution upon exercise.
• Minor point. Forward-looking: it has not happened yet and may not happen.Options covering 100,000 shares at $2.00 per share create potential dilution upon exercise.
• Minor point. Forward-looking: it has not happened yet and may not happen.Options covering 85,000 shares at $2.00 per share create potential dilution upon exercise.

Key Figures

Stock options: 200,000 options at $2.46 per share Stock options: 100,000 options at $2.00 per share Stock options: 85,000 options at $2.00 per share +5 more

Stock options

200,000 options at $2.46 per share

Inducement award; exercise price matched the September 21, 2026 closing price

Stock options

100,000 options at $2.00 per share

Inducement award; exercise price matched the September 28, 2026 closing price

Stock options

85,000 options at $2.00 per share

Inducement award; exercise price matched the October 2, 2026 closing price

Recipients

4 employees

Newly hired non-executive employees

Option term

10 years

Each option

Vesting period

4 years

Each option

Initial vesting

25%

On the one-year anniversary of the grant date

Remaining vesting installments

12 equal quarterly installments

Over the three years after the one-year anniversary

Key Terms

non-qualified stock options, nasdaq listing rule 5635(c)(4)

2 terms

non-qualified stock options financial

"non-qualified stock options to purchase an aggregate of 200,000 shares"

Non-qualified stock options are a type of employee benefit that gives individuals the right to buy company shares at a set price, usually lower than the market value, within a certain period. Unlike other options that may have special tax advantages, these options are taxed as income when exercised, which can affect how much money the employee or investor ultimately gains. They are important because they can influence company compensation strategies and impact the financial outcomes for employees and investors.

nasdaq listing rule 5635(c)(4) regulatory

"approved 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.

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PHILADELPHIA, Oct. 05, 2026 (GLOBE NEWSWIRE) -- Cabaletta Bio, Inc. (Nasdaq: CABA), a late-stage clinical biotechnology company focused on developing and launching curative targeted cell therapies designed specifically for patients with autoimmune diseases, today announced the grant of inducement equity awards to four newly hired non-executive employees as a material inducement to commencing their employment with the Company. The equity awards were approved in accordance with Nasdaq Listing Rule 5635(c)(4).

The inducement awards are as follows: (i) non-qualified stock options to purchase an aggregate of 200,000 shares of the Company’s common stock with an exercise price of $2.46 per share, which is equal to the closing price of the Company’s common stock as reported by Nasdaq on September 21, 2026, (ii) non-qualified stock options to purchase an aggregate of 100,000 shares of the Company’s common stock with an exercise price of $2.00 per share, which is equal to the closing price of the Company’s common stock as reported by Nasdaq on September 28, 2026, and (iii) non-qualified stock options to purchase an aggregate of 85,000 shares of the Company’s common stock with an exercise price of $2.00 per share, which is equal to the closing price of the Company’s common stock as reported by Nasdaq on October 2, 2026. Each option has a 10-year term and will vest over four years, with 25% of the underlying shares vesting on the one-year anniversary of the date of grant, and the remainder vesting in 12 equal quarterly installments for the three years thereafter. The stock options are subject to the terms and conditions of the Company’s 2025 Inducement Plan and the terms and conditions of the stock option agreements covering the grants.

About Cabaletta Bio
Cabaletta Bio (Nasdaq: CABA) is a late-stage clinical biotechnology company focused on developing and launching curative targeted cell therapies designed specifically for patients with autoimmune diseases. Cabaletta’s lead product candidate, rese-cel, is an investigational 4-1BB-containing fully human CD19-CAR T cell therapy being advanced across the RESET™ (REstoring SElf-Tolerance) clinical development program spanning multiple therapeutic areas, including rheumatology, neurology, and dermatology. Cabaletta Bio’s headquarters and labs are located in Philadelphia, PA. For more information, visit www.cabalettabio.com and connect with us on LinkedIn.

Contacts
Investors: investors@cabalettabio.com
Media: media@cabalettabio.com

FAQ

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

What stock option inducement awards did Cabaletta Bio (CABA) grant?

Cabaletta Bio granted four newly hired non-executive employees options covering 200,000 shares at $2.46 per share, 100,000 shares at $2.00 per share and 85,000 shares at $2.00 per share. The awards were an inducement to begin employment.

How do Cabaletta Bio's employee inducement options vest?

The options vest over four years, with 25% of the underlying shares vesting on the first anniversary of the grant date and the remainder in 12 equal quarterly installments over the following three years. Each option has a 10-year term.