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

The options and restricted stock units each begin vesting with 25% on the first anniversary of the grant date.

Rhea-AI Summary

Fate Therapeutics (FATE) granted equity inducement awards to two newly hired non-executive employees on October 1, 2026.

One employee received options to purchase 62,900 common shares at $2.30 per share, matching the Nasdaq closing price on the grant date. Two employees, including the option recipient, received restricted stock units (RSUs) representing 72,700 common shares. The Compensation Committee approved the awards under the Amended and Restated Inducement Equity Plan in accordance with Nasdaq Listing Rule 5635(c)(4). Both award types vest over four years, subject to continued employment through each vesting date.

Positive

• None.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.62,900 stock options at a $2.30 exercise price create potential shareholder dilution as they vest and are exercised.
• Minor point. Forward-looking: it has not happened yet and may not happen.RSUs representing 72,700 common shares create potential shareholder dilution as the awards vest.

Key Figures

Options awarded: 62,900 shares Option exercise price: $2.30 per share RSUs awarded: 72,700 shares +2 more

Options awarded

62,900 shares

Granted to one newly hired non-executive employee

Option exercise price

$2.30 per share

Options granted October 1, 2026

RSUs awarded

72,700 shares

Granted to two newly hired non-executive employees

Option vesting period

4 years

Subject to continued employment through each vesting date

RSU vesting period

4 years

Subject to continued employment through each vesting date

Key Terms

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

4 terms

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 72,700 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.

induced pluripotent stem cell (ipsc) medical

"pipeline of induced pluripotent stem cell (iPSC)-derived cellular immunotherapies"

Induced pluripotent stem cells (iPSCs) are adult cells that scientists have reprogrammed to behave like embryonic stem cells, able to develop into many different cell types. Think of them as retrained workers who can be reassigned to multiple jobs; for investors they matter because iPSCs enable development of new therapies, personalized drug testing, and scaled cell products, which can drive long-term value but also face lengthy development timelines and regulatory scrutiny.

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.

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SAN DIEGO, Oct. 02, 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 to patients with cancer and autoimmune diseases, today announced that on October 1, 2026, the Company granted (i) non-qualified stock options to one newly-hired non-executive employee to purchase a total of 62,900 shares of the Company’s common stock at an exercise price per share of $2.30, which was the closing price per share of the Company’s common stock as reported by NASDAQ on October 1, 2026, and (ii) restricted stock units (RSUs) representing 72,700 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 equity inducement awards did Fate Therapeutics grant on October 1, 2026?

Fate Therapeutics granted options for 62,900 common shares at $2.30 per share to one newly hired non-executive employee and RSUs representing 72,700 common shares to two newly hired non-executive employees. The option recipient also received RSUs.

How do Fate Therapeutics' October 1, 2026 employee inducement awards vest?

The options vest 25% on the first grant-date anniversary, with the remaining 75% vesting in approximately equal monthly installments over the following thirty-six months. The RSUs vest 25% on each grant-date anniversary over four years. Both schedules require continued employment through each vesting date.