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

The awards carry four-year vesting schedules, with continued employment required at each vesting date.

Rhea-AI Summary

Fate Therapeutics (NASDAQ: FATE) granted stock options and restricted stock units to newly hired non-executive employees on November 2, 2026. One employee received options to purchase 300,000 shares at $2.01 per share, matching the closing share price that day. Two employees, including the option recipient, received restricted stock units representing 87,000 shares.

Both awards vest over four years, subject to continued employment. Options vest 25% after one year, then in approximately equal monthly installments over thirty-six months. Restricted stock units vest 25% annually. The Compensation Committee approved the grants under the Amended and Restated Inducement Equity Plan in accordance with Nasdaq Listing Rule 5635(c)(4).

Positive

• None.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.300,000 stock options at a $2.01 exercise price create potential dilution as they vest and are exercised.
• Minor point. Forward-looking: it has not happened yet and may not happen.87,000 restricted stock units represent additional potential dilution, subject to four-year vesting and continued employment.

Key Figures

Options granted: 300,000 shares Option exercise price: $2.01 per share Restricted stock units: 87,000 shares +2 more

Options granted

300,000 shares

Awarded to one newly hired non-executive employee

Option exercise price

$2.01 per share

Equal to the November 2, 2026 closing price

Restricted stock units

87,000 shares

Awards to two newly hired non-executive employees

Option vesting period

4 years

25% after one year; remaining 75% in approximately equal monthly installments over 36 months

RSU vesting period

4 years

25% vests on each anniversary of the grant date

Key Terms

induced pluripotent stem cell, non-qualified stock options, restricted stock units, nasdaq listing rule 5635(c)(4)

4 terms

induced pluripotent stem cell medical

"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.

non-qualified stock options financial

"granted (i) non-qualified stock options to one newly-hired non-executive employee"

Non-qualified stock options are a type of employee benefit that gives individuals the right to buy company shares at a set price, usually lower than the market value, within a certain period. Unlike other options that may have special tax advantages, these options are taxed as income when exercised, which can affect how much money the employee or investor ultimately gains. They are important because they can influence company compensation strategies and impact the financial outcomes for employees and investors.

restricted stock units financial

"restricted stock units (RSUs) representing 87,000 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.

nasdaq listing rule 5635(c)(4) regulatory

"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, Nov. 03, 2026 (GLOBE NEWSWIRE) -- Fate Therapeutics, Inc. (NASDAQ: FATE), a clinical-stage biopharmaceutical company dedicated to bringing a transformative and broadly accessible pipeline of induced pluripotent stem cell (iPSC)-derived cellular immunotherapies to patients with cancer and autoimmune diseases, today announced that on November 2, 2026, the Company granted (i) non-qualified stock options to one newly-hired non-executive employee to purchase a total of 300,000 shares of the Company’s common stock at an exercise price per share of $2.01, which was the closing price per share of the Company’s common stock as reported by NASDAQ on November 2, 2026, and (ii) restricted stock units (RSUs) representing 87,000 shares of its common stock to two newly-hired non-executive employees, including the newly-hired employee receiving the non-qualified stock options referenced above. 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 options will vest over four years, with 25% of the shares underlying the option vesting on the one-year anniversary of the grant date and the remaining 75% vesting in approximately equal monthly installments over the following thirty-six months, subject to the employee being continuously employed by the Company through each vesting date. 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 first-in-class pipeline of induced pluripotent stem cell (iPSC)-derived cellular immunotherapies to patients with cancer and autoimmune diseases. 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 employee inducement awards did Fate Therapeutics grant on November 2, 2026?

Fate Therapeutics granted 300,000 stock options to one newly hired non-executive employee and 87,000 restricted stock units to two newly hired non-executive employees. The option recipient also received restricted stock units. The options have a $2.01 exercise price, equal to the closing share price on the grant date.

How do Fate Therapeutics' November 2026 employee inducement awards vest?

Both award types vest over four years, subject to continued employment through each vesting date. Options vest 25% on the first grant anniversary and the remaining 75% in approximately equal monthly installments over the following thirty-six months. Restricted stock units vest 25% on each grant anniversary.