Dyne Therapeutics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Dyne Therapeutics (Nasdaq:DYN) granted inducement equity awards to 17 new employees under Nasdaq Listing Rule 5635(c)(4).

Rhea-AI Summary

Dyne Therapeutics (Nasdaq:DYN) granted inducement equity awards to 17 new employees under Nasdaq Listing Rule 5635(c)(4).

Awards include non-statutory stock options for up to 296,500 shares and 94,100 restricted stock units, all vesting over four years under Dyne’s 2024 Inducement Stock Incentive Plan.

Positive

• Inducement awards support hiring of 17 new employees
• Equity-based compensation aligns new hires with shareholder interests over four years

Negative

• New options for 296,500 shares add potential future dilution
• 94,100 new restricted stock units increase outstanding equity over time

Argus May 21 session

-1.08% close to close 1.2x rel. volume Open Argus

Details

News Market Reaction – DYN

On May 21, the first trading day after this news, DYN closed 1.08% below the previous close.

Data tracked by StockTitan Argus for the May 21 session.

Key Figures

Inducement option shares: 296,500 shares Inducement RSU shares: 94,100 shares New employees: 17 employees +3 more

Inducement option shares

296,500 shares

Non-statutory stock options granted to new hires

Inducement RSU shares

94,100 shares

Restricted stock units granted to new hires

New employees

17 employees

Recipients of inducement equity awards

Option term

10 years

Non-statutory stock option duration

Vesting period

4 years

Option and RSU vesting schedules

Initial vesting

25%

Options vest on first anniversary of start date

Historical Context

5 past events · Latest: May 20

5 events

1. May 20

   Phase 3 trial start

   24h Move

   +6.3%

   Initiation of FORZETTO Phase 3 DMD trial with FDA-aligned design.

2. May 13

   Investor conferences

   24h Move

   +0.4%

   Participation in multiple upcoming healthcare investor conferences.

3. May 11

   Earnings and pipeline

   24h Move

   +4.8%

   Q1 2026 results and cash runway into Q1 2028 with DMD/DM1 progress.

4. Apr 27

   Preclinical data

   24h Move

   +0.7%

   ASGCT data showing FORCE platform CNS MAPT RNA knockdown in animals.

5. Apr 23

   Inducement grants

   24h Move

   -3.4%

   Equity inducement awards to 18 new employees under 2024 plan.

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 options, restricted stock units, inducement stock incentive plan

4 terms

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.

non-statutory stock options financial

"consisted of non-statutory stock options to purchase up to an aggregate of 296,500 shares"

Non-statutory stock options are a type of reward that companies give to employees, allowing them to buy company shares at a set price within a certain period. Unlike formal or government-approved plans, these options are more flexible but may have different tax implications. For investors, they can influence a company's stock price and financial health, making them an important factor to consider.

restricted stock units financial

"and restricted stock units with respect to an aggregate of 94,100 shares"

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.

inducement stock incentive plan financial

"subject to the terms and conditions of ... Dyne’s 2024 Inducement Stock Incentive Plan."

An inducement stock incentive plan is a program that gives newly hired employees or executives shares or stock-based awards as a reward for joining a company and to encourage them to stay and perform. For investors, it matters because these grants can dilute existing shareholders, increase reported compensation costs, and signal how a company is investing in talent—similar to a signing bonus mixed with a stake in the business.

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

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WALTHAM, Mass., May 20, 2026 (GLOBE NEWSWIRE) -- Dyne Therapeutics, Inc. (Nasdaq: DYN), a clinical-stage company focused on delivering functional improvement for people living with genetically driven neuromuscular diseases, today announced that it has granted inducement equity awards to 17 newly hired employees. The awards were made as an inducement material to the newly hired employees’ acceptance of employment with Dyne in accordance with Nasdaq Listing Rule 5635(c)(4).

The inducement equity awards consisted of non-statutory stock options to purchase up to an aggregate of 296,500 shares of Dyne’s common stock at a per share exercise price equal to the closing price of Dyne’s common stock on The Nasdaq Global Select Market on May 20, 2026, and restricted stock units with respect to an aggregate of 94,100 shares of Dyne’s common stock. The stock options have a ten-year term and are scheduled to vest over four years, with 25% of the original number of shares vesting on the first anniversary of the applicable employee’s start date and the remainder vesting in 12 equal quarterly installments thereafter, subject to such employee’s continued service to Dyne through the applicable vesting dates. The restricted stock units are scheduled to vest over four years from the applicable employee’s start date in four equal annual installments, subject to such employee’s continued service to Dyne through the applicable vesting dates.

The inducement equity awards are subject to the terms and conditions of award agreements covering the grants and Dyne’s 2024 Inducement Stock Incentive Plan.

About Dyne Therapeutics

Dyne Therapeutics is focused on delivering functional improvement for people living with genetically driven neuromuscular diseases. We are developing therapeutics that target muscle and the central nervous system (CNS) to address the root cause of disease. The company is advancing clinical programs for Duchenne muscular dystrophy (DMD) and myotonic dystrophy type 1 (DM1) as well as preclinical programs for facioscapulohumeral muscular dystrophy (FSHD), Pompe disease and multiple DMD mutations. At Dyne, we are on a mission to deliver functional improvement for individuals, families and communities. Learn more at https://www.dyne-tx.com/, and follow us on X, LinkedIn and Facebook.

Contacts:
Investors
Mia Tobias
ir@dyne-tx.com
781-317-0353

Media
Stacy Nartker
snartker@dyne-tx.com
781-317-1938

FAQ

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

What inducement equity grants did Dyne Therapeutics (DYN) announce on May 20, 2026?

Dyne Therapeutics announced inducement equity awards of stock options and restricted stock units to 17 new employees. According to Dyne, these include options for up to 296,500 shares and 94,100 restricted stock units under its 2024 Inducement Stock Incentive Plan.

How many Dyne Therapeutics (DYN) shares are covered by the new inducement stock options?

The inducement awards include non-statutory stock options to purchase up to 296,500 shares of Dyne common stock. According to Dyne, the exercise price equals the May 20, 2026 Nasdaq Global Select Market closing price for DYN.

How do Dyne Therapeutics (DYN) inducement RSUs vest for new employees?

The inducement restricted stock units vest over four years in four equal annual installments. According to Dyne, vesting starts from each employee’s hire date and requires continued service through the applicable vesting dates.

What is the vesting schedule for Dyne Therapeutics (DYN) inducement stock options?

Dyne’s inducement stock options have a ten-year term and vest over four years. According to Dyne, 25% vests on the first service anniversary, with the remaining 75% vesting in 12 equal quarterly installments thereafter.

Under which plan were Dyne Therapeutics (DYN) inducement equity awards granted?

The inducement equity awards were granted under Dyne’s 2024 Inducement Stock Incentive Plan. According to Dyne, the grants are also governed by specific award agreements detailing terms, conditions, and vesting requirements for the options and restricted stock units.

Why did Dyne Therapeutics (DYN) use Nasdaq Listing Rule 5635(c)(4) for these grants?

Dyne used Nasdaq Listing Rule 5635(c)(4) to grant inducement awards material to employment acceptance. According to Dyne, these equity grants were specifically provided to 17 newly hired employees as a condition of joining the company.