Edgewise Therapeutics Reports Inducement Grants as permitted by the Nasdaq Listing Rules

Rhea-AI Summary

Edgewise Therapeutics (NASDAQ:EWTX) announced inducement equity grants on November 28, 2025 related to a new non-executive hire. The company granted a stock option to purchase 26,250 shares under its 2024 Inducement Equity Incentive Plan.

The option exercise price is $26.04 per share (equal to the closing price on the grant date). Vesting is 25% after one year and then 1/48th monthly thereafter, subject to continued service. Grants were made as inducements under Nasdaq Listing Rule 5635(c)(4).

News Market Reaction

-9.06%

24 alerts

-9.06% News Effect

-3.0% Trough in 4 hr 37 min

-$250M Valuation Impact

$2.51B Market Cap

0.9x Rel. Volume

On the day this news was published, EWTX declined 9.06%, reflecting a notable negative market reaction. Argus tracked a trough of -3.0% from its starting point during tracking. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $250M from the company's valuation, bringing the market cap to $2.51B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Inducement option size: 26,250 shares Exercise price: $26.04 per share Cliff vesting portion: 25% +1 more

4 metrics

Inducement option size 26,250 shares Stock option grant to new non-executive employee

Exercise price $26.04 per share Equal to closing price on November 28, 2025 grant date

Cliff vesting portion 25% Vests on one-year anniversary of employee start date

Ongoing vesting rate 1/48th monthly Monthly vesting after initial one-year cliff, subject to service

Market Reality Check

Price: $28.61 Vol: Volume 1,266,867 is rough...

normal vol

$28.61 Last Close

Volume Volume 1,266,867 is roughly in line with the 20-day average of 1,245,974 (relative volume 1.02). normal

Technical Price at $23.43 is trading above the 200-day MA of $16.79, indicating a prior uptrend into this filing.

Peers on Argus

Peers in Biotechnology showed mixed moves, with names like VERA (+3.96%) and AUP...

Peers in Biotechnology showed mixed moves, with names like VERA (+3.96%) and AUPH (+2.78%) up, while VRDN (-0.43%) and ARDX (-0.17%) were slightly down, suggesting stock-specific rather than broad sector-driven factors.

Historical Context

5 past events · Latest: Dec 02 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 02	Inducement grant	Neutral	-9.1%	Reported inducement stock option grant for a new non-executive hire.
Nov 20	Board appointment	Neutral	-0.4%	Added commercial biotech executive Christopher Martin to the board.
Nov 12	Inducement grant	Neutral	-1.4%	Granted stock options and RSUs to new CFO under inducement plan.
Nov 10	CFO transition	Neutral	+6.5%	Announced appointment of new CFO and retirement of prior CFO.
Nov 07	Investor conferences	Neutral	+0.4%	Outlined participation in several upcoming healthcare investor conferences.

Pattern Detected

Recent disclosures center on management changes, investor outreach, and inducement or equity awards, with single-day price reactions spanning from about -9.06% to +6.53% after these events.

Recent Company History

Over the last month, Edgewise reported multiple governance and financing-related developments. These include investor conference participation (Nov 7, 2025), CFO transition and appointment (Nov 10, 2025), inducement equity awards for the new CFO (Nov 12, 2025), and a board appointment with commercial expertise (Nov 20, 2025). Another inducement grant on Dec 2, 2025 drew a -9.06% next-day move. Today’s inducement grant fits this ongoing cadence of compensation and leadership updates rather than a new clinical or financial inflection point.

Market Pulse Summary

The stock moved -9.1% in the session following this news. A negative reaction despite this routine i...

Analysis

The stock moved -9.1% in the session following this news. A negative reaction despite this routine inducement grant would resemble the -9.06% move after the prior inducement awards reported on Dec 2, 2025. Recent news flow has focused on leadership changes, conferences, and equity compensation, which have produced both gains and losses, including a +6.53% reaction to the CFO transition. Such mixed history suggests that sharp declines around these filings could reflect shifting market sentiment rather than a single fundamental trigger.

Key Terms

inducement stock option, equity incentive plan, exercise price, Nasdaq Listing Rule 5635(c)(4)

4 terms

inducement stock option financial

"Edgewise granted an inducement stock option to purchase a total of 26,250 shares"

An inducement stock option is a grant of the right to buy company shares given to a new or existing employee as a special hiring or retention incentive, similar to offering a signing bonus but paid in future stock. Investors care because these options can motivate managers to grow the business and align their interests with shareholders, while also increasing the total number of shares over time and potentially diluting existing ownership and earnings per share.

equity incentive plan financial

"pursuant to Edgewise's 2024 Inducement Equity Incentive Plan (the "Inducement Plan")"

An equity incentive plan is a program that gives employees, executives or directors the right to receive company stock or options to buy stock as part of their pay. Think of it as offering slices of future company profit to motivate people to boost long‑term performance; for investors it matters because it can align employee goals with shareholder value but also increases the number of shares outstanding, which can dilute existing ownership.

exercise price financial

"The inducement stock option has an exercise price of $26.04 per share"

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.

Nasdaq Listing Rule 5635(c)(4) regulatory

"granted as inducements material ... 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.

AI-generated analysis. Not financial advice.

BOULDER, Colo., Dec. 2, 2025 /PRNewswire/ -- Edgewise Therapeutics, Inc. ("Edgewise" or the "Company"), (Nasdaq: EWTX), a leading muscle disease biopharmaceutical company developing novel therapeutics for muscular dystrophies and serious cardiac conditions, today announced that on November 28, 2025, Edgewise granted an inducement stock option to purchase a total of 26,250 shares of Edgewise's common stock to a new non-executive employee in connection with the commencement of their employment, pursuant to Edgewise's 2024 Inducement Equity Incentive Plan (the "Inducement Plan").    

The inducement stock option has an exercise price of $26.04 per share, which is equal to the closing price of a share of Edgewise common stock on the grant date, and shall vest as follows: 25% of the shares subject to such inducement stock option shall vest on the one year anniversary of the start date of each employee, and an additional one forty-eighth (1/48th) of the shares subject to such inducement stock option shall vest monthly thereafter, subject to the employee's continued service.

The inducement award is subject to the terms of the Inducement Plan and related forms of agreements, and were granted as inducements material to these employees to enter into employment with Edgewise in accordance with Nasdaq Listing Rule 5635(c)(4). 

About Edgewise Therapeutics

Edgewise Therapeutics is a leading muscle disease biopharmaceutical company developing novel therapeutics for muscular dystrophies and serious cardiac conditions. The Company's deep expertise in muscle physiology is driving a new generation of novel therapeutics. Sevasemten is an orally administered first-in-class fast skeletal myosin inhibitor in late-stage clinical trials in Becker and Duchenne muscular dystrophies. EDG-7500 is a novel cardiac sarcomere modulator for the treatment of hypertrophic cardiomyopathy and other diseases of diastolic dysfunction, currently in Phase 2 clinical development. EDG-15400 is a novel cardiac sarcomere modulator for the treatment of heart failure, currently in Phase 1 clinical development. The entire team at Edgewise is dedicated to our mission: changing the lives of patients and families affected by serious muscle diseases. To learn more, go to: www.edgewisetx.com or follow us on LinkedIn, X , Facebook and Instagram.

View original content to download multimedia:https://www.prnewswire.com/news-releases/edgewise-therapeutics-reports-inducement-grants-as-permitted-by-the-nasdaq-listing-rules-302629652.html

SOURCE Edgewise Therapeutics

FAQ

What did Edgewise (EWTX) grant on November 28, 2025?

Edgewise granted an inducement stock option to purchase 26,250 shares to a new non-executive employee.

What is the exercise price of the Edgewise (EWTX) inducement option?

The exercise price is $26.04 per share, equal to the closing price on the grant date.

How does the Edgewise (EWTX) inducement option vest?

It vests 25% after one year of employment and then 1/48th monthly thereafter, subject to continued service.

Under which plan was the Edgewise (EWTX) award granted?

The award was granted under the company's 2024 Inducement Equity Incentive Plan.

Why did Edgewise (EWTX) grant the inducement option?

The grant was made as an inducement to employment in accordance with Nasdaq Listing Rule 5635(c)(4).