Elutia Announces Grants of Inducement Awards under Nasdaq Listing Rule 5635(c)(4)

Elutia (Nasdaq: ELUT) announced inducement equity awards granted March 10, 2026 to three new employees under its 2026 Inducement Award Plan.

Rhea-AI Summary

Elutia (Nasdaq: ELUT) announced inducement equity awards granted March 10, 2026 to three new employees under its 2026 Inducement Award Plan.

An aggregate of 460,000 non-qualified stock options were granted with a $1.09 exercise price (closing price on March 10, 2026). Options vest 25% after one year, then monthly over three years, subject to continued employment and plan terms.

Argus Mar 13 session

-6.09% close to close 0.6x rel. volume Open Argus

Details

News Market Reaction – ELUT

On Mar 13, the day this news came out, ELUT closed 6.09% below the previous close.

Data tracked by StockTitan Argus for the Mar 13 session.

Key Figures

Inducement options granted: 460,000 options New employees: 3 employees Initial vesting tranche: 25% +3 more

Inducement options granted

460,000 options

Aggregate non-qualified stock options granted to three new employees

New employees

3 employees

Recipients of inducement awards under the 2026 Inducement Award Plan

Initial vesting tranche

25%

Options vest 25% on first anniversary of vesting commencement date

Remaining vesting period

3 years

Balance vests in equal monthly installments over next three years

Exercise price

$1.09 per share

Exercise price equals Elutia closing price on March 10, 2026 grant date

Grant date

March 10, 2026

Date equity inducement awards were approved and granted

Historical Context

5 past events · Latest: Mar 11

5 events

1. Mar 11

   Earnings & pipeline

   24h Move

   +5.5%

   Q4/FY 2025 results, balance sheet transformation, NXT-41 regulatory submission.

2. Mar 04

   Nasdaq compliance

   24h Move

   -2.5%

   Regained compliance with Nasdaq minimum bid price and market value rules.

3. Mar 02

   Executive hire

   24h Move

   -0.9%

   Appointed CCO to lead NXT-41x commercial launch preparation for breast surgery.

4. Feb 25

   Earnings date set

   24h Move

   +5.5%

   Announced timing and webcast details for Q4 2025 earnings release.

5. Feb 18

   Workplace award

   24h Move

   +4.3%

   Received 2026 Great Place to Work Certification highlighting culture and tenure.

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, nasdaq listing rule 5635(c)(4), vesting commencement date, exercise price

4 terms

non-qualified stock options financial

"received an aggregate of 460,000 non-qualified stock options (the “Options”)."

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

"were granted 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.

vesting commencement date technical

"vest 25% on the first anniversary of the vesting commencement date, with the balance"

The vesting commencement date is the starting point when an employee begins earning ownership rights to their promised benefits, such as stock options or retirement contributions. Think of it like the day a savings account is opened—only after this date do the benefits start to grow and become fully available over time. It matters to investors because it marks when the clock begins ticking toward full ownership, affecting the timing and value of these benefits.

exercise price financial

"The Options have an exercise price of $1.09 per share, the closing price of Elutia’s"

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.

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GAITHERSBURG, Md., March 13, 2026 (GLOBE NEWSWIRE) -- Elutia Inc. (Nasdaq: ELUT) ("Elutia" or the "Company"), a pioneer in drug-eluting biomatrix technologies, today announced that it granted equity awards on March 10, 2026 to three new employees as inducement awards under the Elutia Inc. 2026 Inducement Award Plan (the “Plan”). The awards were approved by the independent Compensation Committee of the Board of Directors, and were granted in accordance with Nasdaq Listing Rule 5635(c)(4).

Under the Plan, the three new employees received an aggregate of 460,000 non-qualified stock options (the “Options”). The Options vest 25% on the first anniversary of the vesting commencement date, with the balance vesting in equal monthly installments over the following three years. Vesting is subject to each recipient’s continued employment through the applicable vesting date. The Options have an exercise price of $1.09 per share, the closing price of Elutia’s common stock on the Nasdaq Capital Market on March 10, 2026, the grant date. The Options are subject to the terms and conditions of the Plan and the applicable stock option agreement.

About Elutia

Elutia develops and commercializes drug-eluting biomatrix products to improve compatibility between medical devices and the patients who need them. With a growing population in need of implantable technologies, Elutia’s mission is humanizing medicine so patients can thrive without compromise. For more information, visit www.Elutia.com.

Investors:
Elutia Investor Relations
ir@elutia.com

FAQ

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

What inducement awards did Elutia (ELUT) grant on March 10, 2026?

Elutia granted an aggregate of 460,000 non-qualified stock options to three new employees. According to Elutia, the grants were made under the 2026 Inducement Award Plan and approved by the independent Compensation Committee.

What is the vesting schedule for the ELUT inducement options granted March 10, 2026?

The options vest 25% on the first anniversary, then monthly over three years thereafter. According to Elutia, vesting is conditioned on each recipient's continued employment through each vesting date.

What exercise price was set for ELUT options granted March 10, 2026?

The exercise price is $1.09 per share, equal to the closing Nasdaq price on March 10, 2026. According to Elutia, that closing price determined the grant-date exercise price for the options.

Why were the ELUT awards granted under Nasdaq Listing Rule 5635(c)(4)?

The grants were executed as inducement awards in reliance on Nasdaq Listing Rule 5635(c)(4). According to Elutia, the independent Compensation Committee approved the awards consistent with that Nasdaq rule.

How might the 460,000 ELUT option grants affect existing shareholders?

The grants create potential future dilution if exercised, increasing share count upon exercise. According to Elutia, theOptions are subject to exercise and plan terms; the company did not disclose expected dilution percentage.