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

Rhea-AI Summary

Edgewise Therapeutics (Nasdaq: EWTX) announced inducement stock option grants on December 31, 2025 to four new non-executive employees totaling 119,250 shares under its 2024 Inducement Equity Incentive Plan. Each option has an exercise price of $24.82, equal to the closing price on the grant date.

Vesting: 25% of each award vests on the one-year employment anniversary, then 1/48th of the shares vest monthly thereafter, subject to continued service. Grants were issued as inducements in accordance with Nasdaq Listing Rule 5635(c)(4).

News Market Reaction – EWTX

-0.76%

1 alert

-0.76% News Effect

On the day this news was published, EWTX declined 0.76%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Inducement options: 119,250 shares New employees: 4 employees Exercise price: $24.82 per share +2 more

5 metrics

Inducement options 119,250 shares Stock options granted to 4 new non-executive employees

New employees 4 employees Recipients of inducement stock option grants

Exercise price $24.82 per share Option strike equal to closing price on Dec 31, 2025

Initial vesting 25% after 1 year Cliff vesting on one-year employment anniversary

Ongoing vesting 1/48th monthly Remaining options vest monthly after first year

Market Reality Check

Price: $30.09 Vol: Volume 1,000,427 vs 20-da...

low vol

$30.09 Last Close

Volume Volume 1,000,427 vs 20-day average 1,988,533 (relative volume 0.5x). low

Technical Price 23.75 is above 200-day MA at 16.6, while still 22.08% below the 52-week high.

Peers on Argus

Peers show mixed moves: VERA -4.19%, VRDN -0.39%, AUPH -3.34%, PHVS -5.29%, whil...

Peers show mixed moves: VERA -4.19%, VRDN -0.39%, AUPH -3.34%, PHVS -5.29%, while ARDX +5.31%, indicating no clear sector-wide direction tied to this administrative equity news.

Historical Context

5 past events · Latest: Dec 24 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 24	Clinical trial update	Positive	+25.5%	Completion and favorable safety data from Phase 2 EDG-7500 CIRRUS-HCM study.
Dec 02	Inducement grant	Neutral	-9.1%	Inducement stock option grant for a new non-executive hire under 2024 plan.
Nov 20	Board appointment	Positive	-0.4%	Appointment of Christopher Martin to board, adding commercial launch expertise.
Nov 12	Inducement grant	Neutral	-1.4%	CFO-related inducement stock option and RSU awards under 2024 plan.
Nov 10	CFO transition	Positive	+6.5%	Appointment of new CFO and retirement of prior CFO with transition support.

Pattern Detected

EWTX showed a strong positive move on favorable clinical data (+25.5%) but only modest to negative reactions around management changes and prior inducement grants, suggesting operational or governance updates tend to have limited impact versus clinical catalysts.

Recent Company History

Over the last few months, Edgewise reported multiple governance and compensation updates alongside a key clinical milestone. A Dec 24, 2025 Phase 2 EDG-7500 update coincided with a +25.5% move, highlighting the market focus on cardiomyopathy data. In contrast, board and CFO appointments and several inducement equity grants in Nov–Dec 2025 saw relatively modest price changes, including a -9.06% reaction to a prior inducement grant, underscoring that administrative equity awards have been secondary to trial progress.

Market Pulse Summary

This announcement details routine inducement equity awards for 4 new non-executive employees, coveri...

Analysis

This announcement details routine inducement equity awards for 4 new non-executive employees, covering 119,250 stock options at an exercise price of $24.82 per share with standard vesting terms. Similar grants in late 2025 coincided with modest or mixed price moves, especially compared with the strong reaction to clinical data. Investors may track how cumulative equity-based compensation interacts with the existing share count and continue to focus on upcoming trial milestones as the primary value drivers.

Key Terms

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

4 terms

inducement stock options financial

"Edgewise granted inducement stock options to purchase a total of 119,250 shares"

Inducement stock options are grants of the company’s stock rights given to recruit or retain a specific executive or employee, often as a signing bonus instead of cash. Investors care because these awards can increase the total shares outstanding and dilute existing ownership, alter future reported expenses, and signal how the company is paying for talent; think of them as a hiring incentive paid in future company pieces rather than immediate money.

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

"Each inducement stock option has an exercise price of $24.82 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

"were granted as inducements ... 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., Jan. 5, 2026 /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 December 31, 2025, Edgewise granted inducement stock options to purchase a total of 119,250 shares of Edgewise's common stock to 4 new non-executive employees in connection with the commencement of their employment, pursuant to Edgewise's 2024 Inducement Equity Incentive Plan (the "Inducement Plan").

Each inducement stock option has an exercise price of $24.82 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.

Each 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, 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 and X.

View original content to download multimedia:https://www.prnewswire.com/news-releases/edgewise-therapeutics-reports-inducement-grants-as-permitted-by-the-nasdaq-listing-rules-302651849.html

SOURCE Edgewise Therapeutics

FAQ

What did Edgewise (EWTX) grant on December 31, 2025?

Edgewise granted inducement stock options to purchase 119,250 shares to four new non-executive employees.

What is the exercise price of the EWTX inducement options granted Dec 31, 2025?

Each option has an exercise price of $24.82, equal to the closing price on the grant date.

How do the EWTX inducement options vest for the new employees?

Vesting is 25% at one year from start date, then 1/48th monthly thereafter, subject to continued service.

Under which plan were Edgewise inducement options granted?

The awards were granted under the 2024 Inducement Equity Incentive Plan.

Why were the EWTX options granted as inducements?

The grants were issued as inducements to enter employment in accordance with Nasdaq Listing Rule 5635(c)(4).

How many employees received inducement awards from Edgewise on Dec 31, 2025?

A total of four new non-executive employees received inducement option awards.