Fate Therapeutics Reports New Employee Inducement Award Under Nasdaq Listing Rule 5635(c)(4)

Fate Therapeutics (NASDAQ: FATE) granted 30,200 restricted stock units (RSUs) on May 1, 2026 to one newly hired non-executive employee as an inducement under its Amended and Restated Inducement Equity Plan in accordance with Nasdaq Listing Rule 5635(c)(4).

Rhea-AI Summary

Fate Therapeutics (NASDAQ: FATE) granted 30,200 restricted stock units (RSUs) on May 1, 2026 to one newly hired non-executive employee as an inducement under its Amended and Restated Inducement Equity Plan in accordance with Nasdaq Listing Rule 5635(c)(4).

The grant was approved by the Compensation Committee. The RSUs vest over four years, with 25% vesting on each anniversary of the grant date, subject to continuous employment through each vesting date.

Positive

• Inducement grant of 30,200 RSUs approved by Compensation Committee
• RSUs structured with a 4-year vesting schedule (25% annually)

Negative

• Potential shareholder dilution from 30,200 shares if RSUs vest

Argus May 4 session

+17.65% close to close Open Argus

Details

News Market Reaction – FATE

On May 4, the first trading day after this news, FATE closed 17.65% above the previous close.

Data tracked by StockTitan Argus for the May 4 session.

Key Figures

Inducement RSUs granted: 30,200 shares RSU vesting period: 4 years Equity plan increase: 7,000,000 shares +5 more

Inducement RSUs granted

30,200 shares

New hire award on May 1, 2026

RSU vesting period

4 years

25% vests on each grant anniversary

Equity plan increase

7,000,000 shares

Proposed addition to 2022 Stock Option and Incentive Plan

Total equity plan reserve

31,500,000 shares

Proposed revised plan share limit

Plan size vs. outstanding

6.0%

Equity plan reserve as % of shares outstanding Mar 31, 2026

Cash, equivalents & investments

$205.1 million

Balance as of Dec 31, 2025

Common shares outstanding

115.4 million

As of Dec 31, 2025

Net loss 2025

$136.3 million

Full-year 2025 net loss

Historical Context

5 past events · Latest: Apr 30

5 events

1. Apr 30

   Clinical data update

   24h Move

   +0.8%

   FT819 SLE clinical data presentation at CCR–East 2026 meeting.

2. Apr 16

   Preclinical data update

   24h Move

   +6.2%

   FT839 next‑generation CAR T preclinical data preview for AACR meeting.

3. Apr 09

   Investor conferences

   24h Move

   +7.6%

   Announcement of participation in five healthcare investor conferences in Q2 2026.

4. Apr 02

   Inducement RSU grant

   24h Move

   -2.5%

   Grant of 7,260 RSUs to a new non‑executive employee under inducement plan.

5. Mar 04

   Inducement RSU grants

   24h Move

   -4.8%

   Grants of RSUs for 50,700 shares to three new non‑executive employees.

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

Key Terms

induced pluripotent stem cell, cellular immunotherapies, restricted stock units, rsus, +1 more

5 terms

induced pluripotent stem cell medical

"a first-in-class pipeline of induced pluripotent stem cell (iPSC)-derived cellular"

Cells taken from an adult (such as skin or blood) that scientists ‘reprogram’ so they behave like versatile early-stage cells capable of becoming many different cell types in the body. For investors, these cells matter because they enable development of personalized therapies, safer and faster drug testing, and potential regenerative treatments—like resetting a gadget to factory mode so it can run many different apps—creating new commercial opportunities and affecting biotech valuation and risk.

cellular immunotherapies medical

"iPSC)-derived cellular immunotherapies to patients with cancer and autoimmune diseases"

Cellular immunotherapies are medical treatments that use living immune cells, taken from a patient or donor and then trained, modified, or expanded in a lab so they better recognize and attack disease, such as cancer or infection. For investors, these therapies matter because they can offer dramatic, durable patient responses and premium pricing but also carry high development, manufacturing and regulatory risks—think of them as highly trained sniffer dogs that can be powerful but expensive and complex to deploy.

restricted stock units financial

"the Company granted restricted stock units (RSUs) representing 30,200 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.

rsus financial

"The RSUs will vest over four years, with 25% of the shares underlying each RSU award"

RSUs, or restricted stock units, are a form of company shares given to employees as part of their compensation. They are typically awarded with certain restrictions, such as a waiting period before they can be fully owned or sold, similar to earning a gift that becomes fully yours over time. For investors, RSUs can impact a company's stock offerings and reflect how much the company relies on stock-based incentives to attract and retain talent.

nasdaq listing rule 5635(c)(4) regulatory

"with the Company 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. How Rhea-AI works. Not financial advice.

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SAN DIEGO, May 01, 2026 (GLOBE NEWSWIRE) -- Fate Therapeutics, Inc. (NASDAQ: FATE), a clinical-stage biopharmaceutical company dedicated to bringing a first-in-class pipeline of induced pluripotent stem cell (iPSC)-derived cellular immunotherapies to patients with cancer and autoimmune diseases, today announced that on May 1, 2026, the Company granted restricted stock units (RSUs) representing 30,200 shares of its common stock to one newly-hired non-executive employee. The grant was approved by the Compensation Committee of the Company’s Board of Directors and granted under the Company’s Amended and Restated Inducement Equity Plan as an inducement material to the new employee entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4). The RSUs will vest over four years, with 25% of the shares underlying each RSU award vesting on each anniversary of the grant date, subject to the employee being continuously employed by the Company through each vesting date.

About Fate Therapeutics, Inc.
Fate Therapeutics is a clinical-stage biopharmaceutical company dedicated to bringing a pipeline of induced pluripotent stem cell (iPSC)-derived cellular immunotherapies to patients. Using its proprietary iPSC product platform, the Company has established a leadership position in creating multiplexed-engineered master iPSC lines and in the manufacture and clinical development of off-the-shelf, iPSC-derived cell products. The Company’s pipeline includes iPSC-derived T-cell and natural killer (NK) cell product candidates, which are selectively designed, incorporate novel synthetic controls of cell function, and are intended to deliver multiple therapeutic mechanisms to patients. Fate Therapeutics is headquartered in San Diego, CA. For more information, please visit www.fatetherapeutics.com.

Contact:
Ryan Douglas
Fate Therapeutics, Inc.
IR@fatetherapeutics.com

FAQ

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

What did Fate Therapeutics (FATE) announce on May 1, 2026 about RSU grants?

The company granted 30,200 RSUs to one newly hired non-executive employee as an inducement. According to the company, the grant was approved by the Compensation Committee under its Inducement Equity Plan.

How do the 30,200 RSUs granted by FATE vest and when do shares become owned?

RSUs vest over four years with 25% vesting each anniversary of the grant date. According to the company, vesting is subject to the employee remaining continuously employed through each vesting date.

Why did Fate Therapeutics use an inducement award under Nasdaq listing rule 5635(c)(4)?

The inducement award allowed issuance of equity to a new hire outside existing plans as a hiring incentive. According to the company, this was done in accordance with Nasdaq Listing Rule 5635(c)(4).

Who approved the RSU grant at Fate Therapeutics (FATE)?

The Compensation Committee of the board approved the RSU grant to the newly hired non-executive employee. According to the company, the approval was part of the inducement under its equity plan.

Does the 30,200 RSU grant to a new employee affect FATE shareholders immediately?

The grant creates potential future shares but does not immediately change outstanding shares until vesting and settlement. According to the company, shares underlying the RSUs vest over four years, subject to continuous employment.