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

Equillium (Nasdaq: EQ) announced inducement grants on May 1, 2026 under its 2024 Inducement Plan.

Rhea-AI Summary

Equillium (Nasdaq: EQ) announced inducement grants on May 1, 2026 under its 2024 Inducement Plan. The Compensation Committee awarded nonstatutory stock options to purchase an aggregate of 800,000 common shares to two new employees.

Each option’s exercise price equals $2.08 (Equillium’s closing price on May 1, 2026). Options vest over four years: 25% after one year, then monthly over 36 months, subject to continued service and plan/agreement terms, and were approved as an inducement under Nasdaq Listing Rule 5635(c)(4).

Argus May 4 session

+0.96% close to close Open Argus

Details

News Market Reaction – EQ

On May 4, the first trading day after this news, EQ closed 0.96% above the previous close.

Data tracked by StockTitan Argus for the May 4 session.

Key Figures

Inducement options: 800,000 shares Exercise price: $2.08 per share Vesting period: 4 years +5 more

Inducement options

800,000 shares

Aggregate nonstatutory stock options granted to two new employees

Exercise price

$2.08 per share

Equals Equillium’s closing stock price on May 1, 2026

Vesting period

4 years

Inducement stock options vest over four years

Initial cliff vesting

25% after 1 year

First 25% of shares vest on one-year anniversary

Subsequent vesting

36 monthly installments

Remaining 75% vests monthly over 36 months

New employees

2 employees

Recipients of the inducement stock option awards

Registered resale shares

18,878,101 shares

Shares registered for resale under Form S-3

Pre-funded warrant shares

17,698,593 shares

Shares underlying pre-funded warrant registered on S-3

Historical Context

5 past events · Latest: Apr 20

5 events

1. Apr 20

   Conference participation

   24h Move

   +7.0%

   Oppenheimer 2026 Innovation on the Island investor event participation announcement.

2. Apr 08

   Scientific posters

   24h Move

   -6.3%

   IMMUNOLOGY2026 poster presentations highlighting preclinical EQ504 immune tolerance data.

3. Apr 02

   Inducement grant

   24h Move

   +2.0%

   Inducement stock option grant for 32,000 shares to a new employee.

4. Mar 25

   Earnings update

   24h Move

   +0.0%

   Fourth quarter and full-year 2025 results and corporate/clinical highlights.

5. Mar 18

   Conference participation

   24h Move

   -0.9%

   Participation in the 38th Annual Roth Conference with investor meetings.

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

Key Terms

nonstatutory stock options, nasdaq listing rule 5635(c)(4), exercise price

3 terms

nonstatutory stock options financial

"granted inducement awards consisting of nonstatutory stock options to purchase"

A nonstatutory stock option is a company-issued right that lets an employee or contractor buy shares later at a set price, but it does not qualify for special tax breaks. Think of it like a voucher to buy stock at today’s price; when used, the difference between market price and voucher price is taxed as ordinary income to the holder. Investors care because these options create potential share dilution, affect reported compensation costs, and influence employee incentives and cash flow when taxes and withholdings are settled.

nasdaq listing rule 5635(c)(4) regulatory

"in accordance with Nasdaq Listing Rule 5635(c)(4). Each stock option has"

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

"Each stock option has an exercise price per share equal to $2.08"

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.

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

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LA JOLLA, Calif., May 01, 2026 (GLOBE NEWSWIRE) -- Equillium, Inc. (Nasdaq: EQ), a biotechnology innovator developing novel therapies to treat severe autoimmune and inflammatory disorders, today announced that on May 1, 2026, the Compensation Committee of Equillium’s Board of Directors granted inducement awards consisting of nonstatutory stock options to purchase an aggregate of 800,000 shares of common stock to two new employees under Equillium’s 2024 Inducement Plan. The Compensation Committee approved the stock option grants as an inducement material to such employees’ employment in accordance with Nasdaq Listing Rule 5635(c)(4).

Each stock option has an exercise price per share equal to $2.08, Equillium’s closing stock price on May 1, 2026, and will vest over four years, with 25% of the underlying shares vesting on the one-year anniversary of the applicable vesting commencement date and the balance of the underlying shares vesting monthly thereafter over 36 months, subject to the new employee’s continued service relationship with Equillium through the applicable vesting dates. The stock option is subject to the terms and conditions of Equillium’s 2024 Inducement Plan and the terms and conditions of an applicable stock option agreement covering the grant.

About Equillium
Equillium is a biotechnology innovator developing novel therapies to treat severe autoimmune and inflammatory disorders. The company’s lead therapeutic candidate is EQ504, a potent and selective aryl hydrocarbon receptor (AhR) modulator designed with a multi-modal, non-immunosuppressive mechanism of action to be complementary to other inflammation and immunology agents. EQ504 is an investigational therapeutic program with potential for targeted, local delivery via enteric coating for the treatment of ulcerative colitis and other gastrointestinal diseases or inhaled formulations for the treatment of inflammatory lung diseases.

For more information, visit www.equilliumbio.com.

Forward Looking Statements
Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate", "believe", “could”, “continue”, "expect", "estimate", “may”, "plan", "outlook", “future” and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Because such statements are subject to risks and uncertainties, many of which are outside of Equillium’s control, actual results may differ materially from those expressed or implied by such forward-looking statements. Risks that contribute to the uncertain nature of the forward-looking statements include: Equillium’s ability to execute its plans and strategies; risks related to performing clinical studies; and whether the results from clinical studies will validate and support the safety and efficacy of Equillium’s product candidates. These and other risks and uncertainties are described more fully under the caption "Risk Factors" and elsewhere in Equillium's filings and reports, which may be accessed for free by visiting the Securities and Exchange Commission’s website at www.sec.gov and on Equillium’s website under the heading “Investors.” Investors should take such risks into account and should not rely on forward-looking statements when making investment decisions. All forward-looking statements contained in this press release speak only as of the date on which they were made. Equillium undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

Investor Contact 
PJ Kelleher
LifeSci Advisors, LLC
+1-617-430-7579
pkelleher@lifesciadvisors.com

FAQ

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

What did Equillium (EQ) announce on May 1, 2026 about stock option inducements?

Equillium granted nonstatutory stock options totaling 800,000 shares to two new employees. According to the company, grants were approved under Nasdaq Listing Rule 5635(c)(4) and are governed by the 2024 Inducement Plan and individual option agreements.

What is the exercise price and how was it determined for Equillium's May 1, 2026 EQ options?

The exercise price is $2.08 per share, equal to Equillium’s closing stock price on May 1, 2026. According to the company, that closing price sets the per‑share exercise price for the inducement stock options.

How do the Equillium (EQ) inducement stock options vest for the new employees?

Options vest over a four‑year schedule: 25% after one year, then monthly vesting over 36 months. According to the company, vesting is subject to the employee’s continued service through each applicable vesting date.

Are Equillium's May 1, 2026 option grants subject to any plan or agreement terms?

Yes. The grants are subject to the 2024 Inducement Plan and the applicable stock option agreement. According to the company, the awards follow the plan’s terms and additional provisions in each option agreement.

Why did Equillium approve these inducement grants under Nasdaq Listing Rule 5635(c)(4)?

The Compensation Committee approved the grants as inducements material to employment, consistent with Nasdaq Listing Rule 5635(c)(4). According to the company, this permits hiring awards outside the existing equity plan when required for new hires.