Fate Therapeutics (NASDAQ: FATE) announced inducement equity awards granted on January 1, 2026 to newly hired non-executive employees under its Amended and Restated Inducement Equity Plan pursuant to Nasdaq Listing Rule 5635(c)(4).
The company granted a non-qualified stock option for 48,000 shares at an exercise price of $0.98 (NASDAQ close on December 31, 2025) to one new hire and 79,400 restricted stock units (RSUs) to four new hires (one individual received both the option and RSUs). Options vest over four years (25% after one year, then monthly over 36 months). RSUs vest over four years with 25% vesting on each anniversary, subject to continued employment.
Loading...
Loading translation...
Positive
None.
Negative
None.
News Market Reaction
+2.39%
1 alert
+2.39%News Effect
On the day this news was published, FATE gained 2.39%, reflecting a moderate positive market reaction.
Peers showed mixed moves: CRBP -4.02%, EQ -2.55%, FBRX -13.26%, KALA +10.63%, TARA +0.37%. With no momentum scanner flags, FATE’s modest +0.39% move looks stock-specific rather than a coordinated sector trend.
Common CatalystSelect peers had news-driven catalysts (e.g., designations for TARA, conference participation for CRBP), but no common event directly links to FATE’s HR-related inducement awards.
Appointment of new CFO with significant option and RSU package to bolster leadership team.
Pattern Detected
Recent news, including positive clinical and corporate updates, often saw negative near-term price reactions, except for the CFO appointment, which drew a positive move.
Recent Company History
Over recent months, Fate Therapeutics reported several key developments. A Q3 2025 update highlighted FT819 clinical progress and cash of $225.7M, yet the stock fell after that earnings release. Positive Phase 1 FT819 data and ex-US expansion authorizations also preceded a small decline. Corporate items like inducement awards under Nasdaq Rule 5635(c)(4) and leadership changes, including appointing a new CFO with sizeable equity grants, show ongoing organizational reshaping. Today’s additional inducement awards fit this pattern of incremental HR and incentive actions.
Market Pulse Summary
This announcement details additional stock options and RSUs granted to new employees under the Amend...
Analysis
This announcement details additional stock options and RSUs granted to new employees under the Amended and Restated Inducement Equity Plan in line with Nasdaq Rule 5635(c)(4). It continues Fate’s use of equity incentives for both executives and staff, following earlier inducement and leadership-related grants. With shares trading well below the 1.99 52‑week high and under the 200-day MA of 1.13, investors may monitor the cumulative impact of such awards on the share count alongside future clinical and financial milestones.
"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 immunotherapiesmedical
"iPSC)-derived cellular immunotherapies to patients with cancer and autoimmune"
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.
non-qualified stock optionsfinancial
"granted (i) non-qualified stock options to one newly-hired non-executive"
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 unitsfinancial
"and (ii) restricted stock units (RSUs) representing 79,400 shares of its"
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.
exercise pricefinancial
"to purchase a total of 48,000 shares ... at an exercise price per share of $0.98"
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
"in accordance with Nasdaq Listing Rule 5635(c)(4). The options will vest"
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.
vestingfinancial
"The options will vest over four years, with 25% of the shares underlying"
Vesting is the process by which you earn full ownership of something, like company stock or a retirement benefit, over time. It’s like earning the right to keep a gift piece by piece the longer you stay with a company, making sure employees stay committed before they receive all the benefits.
inducement equity planfinancial
"under the Company’s Amended and Restated Inducement Equity Plan as an inducement"
An inducement equity plan is a program that offers employees or executives new stock options or shares as a way to encourage them to join or stay with a company. It acts like a reward or incentive to motivate performance and loyalty, aligning their interests with the company's success. For investors, such plans can influence a company's share structure and future earnings, making them an important factor to consider.
AI-generated analysis. Not financial advice.
SAN DIEGO, Jan. 05, 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 January 1, 2026, the Company granted (i) non-qualified stock options to one newly-hired non-executive employee to purchase a total of 48,000 shares of the Company’s common stock at an exercise price per share of $0.98, which was the closing price per share of the Company’s common stock as reported by NASDAQ on December 31, 2025, and (ii) restricted stock units (RSUs) representing 79,400 shares of its common stock to four 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 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.
What equity awards did Fate Therapeutics (FATE) grant on January 1, 2026?
Fate granted a non-qualified option for 48,000 shares at $0.98 and 79,400 RSUs to four newly hired non-executive employees.
What is the exercise price and reference date for the FATE option granted January 1, 2026?
The option exercise price is $0.98, equal to the NASDAQ closing price on December 31, 2025.
How do the FATE options vest that were granted to the new hire?
Options vest over four years: 25% on the one-year anniversary, then the remaining 75% in approximately equal monthly installments over 36 months, subject to continued employment.
What are the vesting terms for the RSUs Fate granted on January 1, 2026?
The RSUs vest over four years with 25% of each award vesting on each anniversary of the grant date, subject to continued employment.
Under which plan and rule were the Fate inducement awards granted?
The awards were granted under the company's Amended and Restated Inducement Equity Plan as inducements in accordance with Nasdaq Listing Rule 5635(c)(4).
