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

Fate Therapeutics (NASDAQ:FATE) reported that on August 1, 2026, it granted equity inducement awards to newly hired non-executive employees under its Amended and Restated Inducement Equity Plan pursuant to Nasdaq Listing Rule 5635(c)(4).

Rhea-AI Summary

Fate Therapeutics (NASDAQ:FATE) reported that on August 1, 2026, it granted equity inducement awards to newly hired non-executive employees under its Amended and Restated Inducement Equity Plan pursuant to Nasdaq Listing Rule 5635(c)(4).

The awards include non-qualified stock options to purchase 37,300 shares of common stock at an exercise price of $2.45 per share, equal to the July 31, 2026 NASDAQ closing price, to one new employee. In addition, the company granted 45,300 RSUs covering common stock to two new non-executive employees. The options vest over four years, with 25% vesting after one year and the remaining 75% vesting in approximately equal monthly installments over the next 36 months, subject to continued employment. The RSUs vest over four years in 25% annual installments on each anniversary of the grant date, also subject to continued employment.

News Explained

The August 1 awards are already granted, but their employment-based vesting leaves the ownership effect conditional: they cover 37,300 option shares and 45,300 RSU shares, which could dilute existing holders if the awards ultimately result in issued shares.

Argus Aug 4 session 23 alerts

+2.80% close to close 2.7x rel. volume Open Argus

Details

News Market Reaction – FATE

+5.3% Peak in 27 hr 59 min

$312.96M Market Cap

In the Aug 4 session, FATE gained 2.80%, reflecting a moderate positive market reaction. Argus tracked a peak move of +5.3% during that session. Our momentum scanner triggered 23 alerts that day, indicating elevated trading interest and price volatility. Trading volume was elevated at 2.7x the daily average, suggesting notable buying interest.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The prior FDA-clearance event, news_id 1079941, carried a 6.14% 24-hour reaction, providing a compan...

Analysis

The prior FDA-clearance event, news_id 1079941, carried a 6.14% 24-hour reaction, providing a company-specific news benchmark. For these inducement awards, future filings and the existing Net Selling insider context are relevant risk indicators.

Key Figures

Option shares: 37,300 shares Option exercise price: $2.45 per share RSU shares: 45,300 shares +5 more

Option shares

37,300 shares

Granted to one newly-hired non-executive employee

Option exercise price

$2.45 per share

Closing price reported by NASDAQ on July 31, 2026

RSU shares

45,300 shares

Representing awards to two newly-hired non-executive employees

Grant date

August 1, 2026

Date of the inducement awards

Option vesting period

4 years

25% after one year and remaining shares thereafter

First option vesting tranche

25%

Vests on the one-year anniversary of the grant date

Remaining option vesting

75%

Vests in approximately equal monthly installments

Remaining option vesting installments

36 months

Following the one-year anniversary vesting

Historical Context

5 past events · Latest: Jul 09

5 events

1. Jul 09

   FDA clearance

   24h Move

   +6.1%

   FDA cleared the FT839 investigational new drug application for a Phase 1/2 basket trial.

2. Jul 06

   Clinical data

   24h Move

   +2.4%

   Preliminary FT819 systemic sclerosis data showed clinical improvements without several reported safety events.

3. Jul 01

   Investor conferences

   24h Move

   -3.3%

   Management announced participation in several third-quarter healthcare and therapeutics investor conferences.

4. Jun 15

   Board appointment

   24h Move

   -2.4%

   Laura Hamill joined the board as Fate advanced its iPSC-derived cell therapy pipeline.

5. Jun 04

   Clinical data

   24h Move

   -0.5%

   Fate presented FT819 and FT839 data at the European Congress of Rheumatology.

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

Key Terms

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

3 terms

non-qualified stock options financial

"the Company 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

"and (ii) restricted stock units (RSUs) representing 45,300 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.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

SAN DIEGO, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Fate Therapeutics, Inc. (NASDAQ: FATE), a clinical-stage biopharmaceutical company dedicated to bringing a transformative pipeline of induced pluripotent stem cell (iPSC)-derived cellular immunotherapies broadly to patients with cancer and autoimmune diseases, today announced that on August 1, 2026, the Company granted (i) non-qualified stock options to one newly-hired non-executive employee to purchase a total of 37,300 shares of the Company’s common stock at an exercise price per share of $2.45, which was the closing price per share of the Company’s common stock as reported by NASDAQ on July 31, 2026, and (ii) restricted stock units (RSUs) representing 45,300 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 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 equity inducement awards did Fate Therapeutics (FATE) grant on August 1, 2026?

Fate Therapeutics granted stock options for 37,300 shares and RSUs for 45,300 shares to new non-executive employees. According to Fate Therapeutics, these awards were made under its Inducement Equity Plan as a material inducement to employment, subject to standard multi-year vesting.

What is the exercise price of the new Fate Therapeutics (FATE) stock options granted to employees?

The new non-qualified stock options have an exercise price of $2.45 per share. According to Fate Therapeutics, this price equals the closing price of its common stock on NASDAQ on July 31, 2026, the trading day before the August 1, 2026 grant date.

How do the Fate Therapeutics (FATE) employee stock options granted in August 2026 vest?

The options vest over four years, with 25% vesting on the first anniversary of the grant date. According to Fate Therapeutics, the remaining 75% vests in approximately equal monthly installments over the next 36 months, contingent on continued employment through each vesting date.

What is the vesting schedule for the Fate Therapeutics (FATE) RSU awards granted in August 2026?

The RSUs vest over four years, with 25% vesting on each anniversary of the grant date. According to Fate Therapeutics, vesting of each RSU installment requires the employees to remain continuously employed through the applicable vesting date under the award terms.

Why did Fate Therapeutics (FATE) use Nasdaq Listing Rule 5635(c)(4) for these inducement awards?

Fate Therapeutics granted these awards as inducement grants under Nasdaq Listing Rule 5635(c)(4) to attract new employees. According to Fate Therapeutics, they were approved by the Board’s Compensation Committee under the company’s Amended and Restated Inducement Equity Plan.