Cue Biopharma Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Cue Biopharma (Nasdaq: CUE) announced inducement equity awards on May 3, 2026, to seven new employees including newly appointed president and CEO Shao-Lee Lin, M.D., Ph.D.

Rhea-AI Summary

Cue Biopharma (Nasdaq: CUE) announced inducement equity awards on May 3, 2026, to seven new employees including newly appointed president and CEO Shao-Lee Lin, M.D., Ph.D. Grants include a non-statutory option for 655,074 shares and 327,537 RSUs for Dr. Lin, plus aggregate option grants of 518,599 shares and 327,534 RSUs to six other new employees. Options use an exercise price of $30.42 per share (May 1, 2026 close). Dr. Lin’s option vests monthly over four years; her RSUs were fully vested on grant. Other employees’ options vest quarterly over four years; their RSUs vested on grant.

Positive

• Appointment of Shao-Lee Lin as president and CEO (leadership change)
• Dr. Lin received 327,537 restricted stock units fully vested upon grant

Negative

• Total non-statutory option grants equal 1,173,673 shares at $30.42 exercise price
• Total restricted stock units awarded equal 655,071 shares fully vested upon grant

Argus May 8 session

-2.04% close to close Open Argus

Details

News Market Reaction – CUE

On May 8, the first trading day after this news, CUE closed 2.04% below the previous close.

Data tracked by StockTitan Argus for the May 8 session.

Key Figures

Share price move: 5.15% Shelf registration size: $300,000,000 ATM capacity: $12,666,282 +5 more

Share price move

5.15%

Price change in prior 24h before inducement grant news

Shelf registration size

$300,000,000

S-3 shelf registered March 17, 2026

ATM capacity

$12,666,282

At-the-market sales agreement under S-3

New hires covered

7 employees

Inducement equity awards granted May 3, 2026

CEO stock option

655,074 shares

Non-statutory option at $30.42 exercise price

CEO RSUs

327,537 shares

Restricted stock units, fully vested upon grant

Other employees’ options

518,599 shares

Aggregate non-statutory options for six new employees

Other employees’ RSUs

327,534 shares

Aggregate RSUs for six new employees, fully vested

Historical Context

5 past events · Latest: Apr 30

5 events

1. Apr 30

   Private placement

   24h Move

   +106.4%

   Announced private placement expected to raise $30 million in gross proceeds.

2. Apr 30

   Pipeline expansion

   24h Move

   +106.4%

   Exclusive license for Ascendant-221 with milestones and global rights ex-Greater China.

3. Apr 30

   Leadership change

   24h Move

   +106.4%

   Appointment of Shao-Lee Lin as CEO and emphasis on clinical-stage transition.

4. Apr 22

   Reverse split

   24h Move

   -6.0%

   1-for-30 reverse stock split to address Nasdaq minimum bid requirement.

5. Apr 15

   Preclinical data

   24h Move

   +65.4%

   New preclinical data on lead autoimmune candidate CUE-401 at IMMUNOLOGY2026.

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

Key Terms

nasdaq listing rule 5635(c)(4), non-statutory stock option, restricted stock units, nasdaq capital market

4 terms

nasdaq listing rule 5635(c)(4) regulatory

"as an inducement material to each new employee entering into employment with the Company 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.

non-statutory stock option financial

"consisted of (i) a non-statutory stock option to purchase 655,074 shares of common stock"

A non-statutory stock option is a company-granted right that lets a person buy shares later at a set price but does not receive special tax-favored treatment under tax law. It matters to investors because when the option is used the holder usually pays ordinary income tax on the gain and the company records compensation cost and issues new shares, which can reduce existing owners’ percentage ownership—think of it like a coupon to buy stock that creates a taxable event and some dilution.

restricted stock units financial

"and (ii) restricted stock units with respect to 327,537 shares of common stock."

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

nasdaq capital market regulatory

"which was the closing price of a share of the Company’s common stock on the Nasdaq Capital Market on May 1, 2026"

The Nasdaq Capital Market is a platform where smaller, emerging companies can list their shares for trading by investors. It provides these companies with access to funding and visibility, helping them grow, much like a local marketplace where new vendors can introduce their products to potential customers. For investors, it offers opportunities to discover early-stage companies with growth potential.

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

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BOSTON, May 07, 2026 (GLOBE NEWSWIRE) -- Cue Biopharma, Inc. (Nasdaq: CUE), today announced that, on May 3, 2026, the Company granted inducement equity awards to seven new employees, including its newly appointed president and chief executive officer, Shao-Lee Lin, M.D., Ph.D. The equity awards were made pursuant to the Company’s 2026 Inducement Stock Incentive Plan and were unanimously approved by the independent directors of the Company as an inducement material to each new employee entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).

The inducement grants made to Dr. Lin consisted of (i) a non-statutory stock option to purchase 655,074 shares of common stock, at an exercise price of $30.42 per share, which was the closing price of a share of the Company’s common stock on the Nasdaq Capital Market on May 1, 2026, and (ii) restricted stock units with respect to 327,537 shares of common stock. Dr. Lin’s option will vest in equal, monthly installments over four years from her start date, subject to continued employment with the Company through each applicable vesting date. Dr. Lin’s restricted stock unit award was fully vested upon grant.

The inducement grants made to the six other new employees consisted of (i) non-statutory stock options to purchase an aggregate of 518,599 shares of common stock, at an exercise price of $30.42 per share, which was the closing price of a share of the Company’s common stock on the Nasdaq Capital Market on May 1, 2026, and (ii) restricted stock unit awards with respect to an aggregate of 327,534 shares of common stock. The option grants will vest in equal, quarterly installments over four years from each employee’s start date, subject to each employee’s continued employment with the Company through each applicable vesting date. The restricted stock unit awards were fully vested upon grant.

About Cue Biopharma
Cue Biopharma (Nasdaq: CUE) is a clinical stage therapeutics company focused on advancing a portfolio of potentially transformative therapies aimed at enabling functional cures across immunological disorders. Its lead asset is a novel anti-IgE antibody with a dual-mechanism of action, currently in Phase 2 development for allergic diseases. In addition, Cue developed the Immuno-STAT^® platform which selectively targets disease-specific T cells in vivo without broad immune modulation. Its lead autoimmune candidate, CUE-401, is advancing towards Phase 1 and was designed to regulate inflammation and drive Treg-mediated tolerance. Cue is led by an experienced management team with deep expertise in identifying, acquiring, and advancing promising drug candidates.

Investor and Media Contact
ir@cuebio.com
Cue Biopharma, Inc.

FAQ

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

What inducement awards did Cue Biopharma (CUE) grant to new CEO Shao-Lee Lin on May 3, 2026?

Dr. Lin received a non-statutory option for 655,074 shares and 327,537 RSUs. According to the company, the option exercise price was $30.42 and the RSUs were fully vested at grant.

How do Shao-Lee Lin’s option vesting terms work for Cue Biopharma (CUE)?

Dr. Lin’s option vests in equal monthly installments over four years from her start date. According to the company, vesting is subject to continued employment through each applicable vesting date.

What equity awards did the six other new Cue Biopharma (CUE) employees receive on May 3, 2026?

The six other employees received aggregate options for 518,599 shares and 327,534 RSUs. According to the company, those options vest quarterly over four years and the RSUs were fully vested upon grant.

What exercise price did Cue Biopharma (CUE) use for the May 3, 2026 inducement option grants?

The exercise price for all option grants was $30.42 per share. According to the company, $30.42 was the Nasdaq closing price on May 1, 2026.

What is the aggregate number of equity awards Cue Biopharma (CUE) granted to the seven new employees?

The grants total 1,173,673 option shares and 655,071 RSUs. According to the company, these figures cover the CEO plus six other new employees granted on May 3, 2026.