C4 Therapeutics Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

C4 Therapeutics (Nasdaq: CCCC) reported that the independent directors on its Organization, Leadership and Compensation Committee approved an inducement grant of non-qualified stock options to purchase 162,880 shares of common stock for one new employee, effective August 10, 2026.

According to C4 Therapeutics, the grant was made as a material inducement to employment under Nasdaq Listing Rule 5635(c)(4). The exercise price equals the closing price of C4T’s common stock on the grant date. The options vest over four years: 25% after one year, then the remainder in 36 equal monthly installments, contingent on continued employment.

Positive

• Inducement option grant of 162,880 shares to attract key hire
• Exercise price set at fair market value on August 10, 2026
• Four-year vesting schedule supports longer-term employee retention

Negative

• Potential shareholder dilution from 162,880 additional option shares
• Vesting contingent on continued employment may lead to unvested turnover risk

Argus Aug 11 session 21 alerts

+6.91% close to close 1.2x rel. volume Open Argus

Details

News Market Reaction – CCCC

+5.8% Peak in 3 hr 20 min

$455.71M Mkt Cap at Peak Alert

On Aug 11, the first trading day after this news, CCCC closed 6.91% above the previous close. Argus tracked a peak move of +5.8% during that session. Our momentum scanner recorded 21 alerts for this stock that day.

Data tracked by StockTitan Argus for the Aug 11 session.

Key Figures

Shares under option: 162,880 shares Grant date: August 10, 2026 Vesting period: four years +2 more

Shares under option

162,880 shares

Inducement Grant to one new employee

Grant date

August 10, 2026

Inducement Grant

Vesting period

four years

Option vesting schedule

Initial vesting

25% of shares

First-year anniversary of employee start date

Subsequent vesting

thirty-six equal monthly installments

Remainder of the option shares

Historical Context

5 past events · Latest: Jun 11

5 events

1. Jun 11

   Phase 1 clinical data

   24h Move

   +0.0%

   Reported 53% overall response rate and 7.9-month median response duration

2. May 20

   Conference participation

   24h Move

   +5.5%

   Announced participation in three upcoming healthcare and oncology conferences

3. May 18

   Inducement grant

   24h Move

   -3.4%

   Granted options covering 85,480 shares to one new employee

4. May 12

   First-quarter earnings

   24h Move

   +0.0%

   Reported quarterly financial results and a new Roche collaboration

5. Apr 09

   Roche partnership

   24h Move

   -2.4%

   Expanded Roche collaboration with $20 million upfront payment

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

Key Terms

non-qualified stock options, inducement grant, Nasdaq Listing Rule 5635(c)(4), exercise price, +1 more

5 terms

non-qualified stock options financial

"approved the grant of non-qualified stock options to purchase 162,880 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.

inducement grant financial

"the “Inducement Grant”"

An inducement grant is a stock-based reward given to a new hire—often options or restricted shares—used as a recruiting “signing bonus” to encourage someone to join a company and stay long enough to add value. Investors care because these grants can dilute existing shareholdings, change executive incentives and increase reported compensation costs, so they signal both management priorities and potential impacts on shareholder value.

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.

exercise price financial

"has an exercise price per share that 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.

vest financial

"The Inducement Grant will vest over a four-year period"

A vest is the process by which an employee earns the right to receive certain benefits or ownership interests, such as stock or retirement funds, over time. It’s similar to earning a reward gradually, ensuring that the benefit becomes fully yours only after a set period or meeting specific conditions. This makes it important for investors because it determines when they can actually claim or use those benefits.

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

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WATERTOWN, Mass., Aug. 10, 2026 (GLOBE NEWSWIRE) -- C4 Therapeutics, Inc. (C4T) (Nasdaq: CCCC), a clinical-stage biopharmaceutical company dedicated to advancing targeted protein degradation science, today announced that the independent directors serving on the Organization, Leadership and Compensation Committee of the Company’s Board of Directors approved the grant of non-qualified stock options to purchase 162,880 shares of the Company’s common stock to one new employee (the “Inducement Grant”), with the grant made on August 10, 2026 (the “Grant Date”). The Inducement Grant was granted as a material inducement to this individual entering employment with C4T in accordance with Nasdaq Listing Rule 5635(c)(4).

The Inducement Grant has an exercise price per share that is equal to the closing price of C4T’s common stock on the Grant Date. The Inducement Grant will vest over a four-year period, with 25% of the shares vesting on the first-year anniversary of the employee’s start date, with the remainder of the shares vesting in thirty-six equal monthly installments thereafter, subject to the employee’s continued employment with C4T through each vesting date.

About C4 Therapeutics
C4 Therapeutics (C4T) (Nasdaq: CCCC) is a clinical-stage biopharmaceutical company dedicated to delivering on the promise of targeted protein degradation science to create a new generation of medicines that transforms patients’ lives. C4T is progressing targeted oncology programs through clinical studies and leveraging its TORPEDO^® platform to efficiently design and optimize small-molecule medicines to address difficult-to-treat diseases. C4T’s degrader medicines are designed to harness the body’s natural protein recycling system to rapidly degrade disease-causing proteins, offering the potential to overcome drug resistance, drug undruggable targets and improve patient outcomes. For more information, please visit www.c4therapeutics.com.

Contacts:
Investors:
Courtney Solberg
Associate Director, Investor Relations
CSolberg@c4therapeutics.com 

Media:
Loraine Spreen
Senior Director, Corporate Communications & Patient Advocacy
LSpreen@c4therapeutics.com 

FAQ

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

What did C4 Therapeutics (CCCC) announce on August 10, 2026 regarding stock options?

C4 Therapeutics announced an inducement grant of non-qualified stock options for 162,880 shares to a new employee. According to C4 Therapeutics, the grant was approved by independent directors and made effective on August 10, 2026 as a material inducement to employment.

How many shares are included in the C4 Therapeutics (CCCC) inducement grant and who receives them?

The inducement grant covers options to purchase 162,880 shares of C4 Therapeutics common stock, awarded to a single new employee. According to C4 Therapeutics, the grant is intended as a material inducement for this individual to join and remain with the company.

What is the exercise price of the C4 Therapeutics (CCCC) inducement stock options granted on August 10, 2026?

The exercise price equals the closing price of C4 Therapeutics common stock on the August 10, 2026 grant date. According to C4 Therapeutics, this pricing aligns the option’s strike price with fair market value at the time of grant under typical equity compensation practice.

How do the C4 Therapeutics (CCCC) inducement stock options vest over time?

The options vest over a four-year period, with 25% vesting on the first anniversary of the employee’s start date. According to C4 Therapeutics, the remaining shares vest in 36 equal monthly installments, subject to the employee’s continued employment through each vesting date.

Why did C4 Therapeutics (CCCC) use Nasdaq Listing Rule 5635(c)(4) for this inducement grant?

C4 Therapeutics granted the options as a material inducement to the new employee’s hiring under Nasdaq Listing Rule 5635(c)(4). According to C4 Therapeutics, this rule allows equity awards outside shareholder-approved plans when used specifically to attract new employees.

What potential impact could the C4 Therapeutics (CCCC) inducement grant have on existing shareholders?

If fully exercised, the options could increase the number of C4 Therapeutics shares outstanding by 162,880, creating potential dilution. According to C4 Therapeutics, the grant is designed to attract and retain talent, seeking to align the employee’s interests with shareholders over time.