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

Fate Therapeutics (NASDAQ: FATE) granted restricted stock units representing 50,700 shares to three newly hired non-executive employees on March 2, 2026 as inducement awards under Nasdaq Listing Rule 5635(c)(4).

Rhea-AI Summary

Fate Therapeutics (NASDAQ: FATE) granted restricted stock units representing 50,700 shares to three newly hired non-executive employees on March 2, 2026 as inducement awards under Nasdaq Listing Rule 5635(c)(4).

The awards vest over four years with 25% vesting on each anniversary, subject to continued employment.

Argus Mar 5 session

-4.83% close to close Open Argus

Details

News Market Reaction – FATE

On Mar 5, the first trading day after this news, FATE closed 4.83% below the previous close.

Data tracked by StockTitan Argus for the Mar 5 session.

Key Figures

Inducement RSUs granted: 50,700 shares Number of new employees: 3 employees RSU vesting period: 4 years +2 more

Inducement RSUs granted

50,700 shares

Restricted stock units to three newly hired non-executive employees on Mar 2, 2026

Number of new employees

3 employees

Recipients of inducement RSU grants under the Inducement Equity Plan

RSU vesting period

4 years

RSUs vest over four years subject to continued employment

Annual vesting tranche

25% per year

25% of RSU shares vest on each anniversary of the grant date

Grant date

March 2, 2026

Date the RSUs representing 50,700 shares were granted

Historical Context

5 past events · Latest: Feb 26

5 events

1. Feb 26

   Earnings update

   24h Move

   +5.4%

   Reported 2025 results with $205.1M cash, runway to 2027, and FT819/FT836 progress.

2. Feb 03

   Inducement awards

   24h Move

   -0.9%

   Granted stock options and 90,000 RSUs to a new hire under inducement plan.

3. Jan 05

   Inducement awards

   24h Move

   +0.0%

   Announced options for 48,000 shares and 79,400 RSUs to new employees.

4. Dec 08

   Clinical data update

   24h Move

   -0.9%

   Presented encouraging Phase 1 FT819 data in SLE/SSc and preclinical FT836/FT839 progress.

5. Nov 25

   Conference participation

   24h Move

   -1.9%

   Planned presentations at the Piper Sandler 37th Annual Healthcare Conference.

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, ipsc, 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 immunotherapies"

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.

ipsc medical

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

Induced pluripotent stem cells (iPSCs) are ordinary adult cells that scientists have reprogrammed back into a versatile, embryonic-like state so they can become many different cell types. Think of them as factory-reset cells that can be turned into heart, nerve, or blood cells for testing drugs, modeling diseases, or developing cell therapies. For investors, iPSCs signal potential high-reward opportunities in new treatments and research tools but also carry technical, manufacturing and regulatory risks that affect commercial prospects.

restricted stock units financial

"the Company granted restricted stock units (RSUs) representing 50,700 shares of its common stock"

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 vesting"

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, March 04, 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 March 2, 2026, the Company granted restricted stock units (RSUs) representing 50,700 shares of its common stock to three newly-hired non-executive employees. The grants were 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 employees 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 employees 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 March 2, 2026 about employee RSUs?

The company granted 50,700 RSUs to three new non-executive hires as inducement awards. According to Fate Therapeutics, the grants were approved by the Compensation Committee and issued under its Amended and Restated Inducement Equity Plan.

How do the March 2, 2026 RSU grants for FATE vest and what are the terms?

The RSUs vest over four years with 25% vesting each anniversary of the grant. According to Fate Therapeutics, vesting is contingent on continuous employment through each anniversary date under the inducement awards.

Why did Fate Therapeutics use Nasdaq Listing Rule 5635(c)(4) for the March 2026 awards?

The company used the rule to classify the grants as inducement material to new hires, permitting awards outside shareholder-approved plans. According to Fate Therapeutics, the awards comply with Nasdaq Listing Rule 5635(c)(4) procedures.

Will the March 2, 2026 RSU grants to three employees meaningfully dilute FATE shareholders?

The press release discloses 50,700 shares granted but does not state total outstanding shares or dilution impact. According to Fate Therapeutics, the awards were approved as standard inducements; dilution magnitude is not provided.