Fennec Pharmaceuticals Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Fennec Pharmaceuticals (NASDAQ:FENC) announced inducement grants under Nasdaq Listing Rule 5635(c)(4). On March 31, 2026 the company granted incentive stock options to 24 new non-executive employees covering 377,500 shares under its 2026 Equity Inducement Plan.

All ISOs carry an exercise price of $5.77 (closing price on March 30, 2026), a 10-year term, and vest one-third after one year then monthly over the next 24 months, subject to continued employment.

Key Figures

Inducement stock options: 377,500 shares Employees granted: 24 employees Exercise price: $5.77 per share +3 more

6 metrics

Inducement stock options 377,500 shares Aggregate ISOs granted to new non‑executive employees

Employees granted 24 employees New non‑executive hires receiving inducement grants

Exercise price $5.77 per share Equal to Nasdaq closing price on March 30, 2026

Option term 10 years Term from March 31, 2026 grant date

Initial vesting cliff One‑third at 1 year First tranche vests on one‑year anniversary of grant

Subsequent vesting period 24 months Remaining two‑thirds vest monthly over following 24 months

Market Reality Check

Price: $5.77 Vol: Volume 205,062 vs 20-day ...

normal vol

$5.77 Last Close

Volume Volume 205,062 vs 20-day average 235,498 (relative volume 0.87) ahead of the inducement grant news. normal

Technical Shares at $5.77 are trading below the 200-day MA of $8.21, about 42% under the 52-week high of $9.92.

Peers on Argus

FENC was down 2.37% while several close peers (e.g., VNDA, CADL, NMRA) also show...

2 Up

FENC was down 2.37% while several close peers (e.g., VNDA, CADL, NMRA) also showed single‑day declines, but momentum‑flagged names like IMMP and DBVT were up about 4%, pointing to stock‑specific factors rather than a clean sector move.

Historical Context

5 past events · Latest: Mar 24 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 24	Earnings and update	Positive	-19.2%	Reported strong 2025 PEDMARK sales growth but wider net loss and no debt.
Mar 18	Earnings date set	Neutral	-3.7%	Announced timing and call details for upcoming 2025 results release.
Mar 16	Litigation settlement	Positive	+5.0%	Settled Cipla patent case; generic entry delayed until September 1, 2033.
Mar 04	Clinical collaboration	Positive	+2.5%	New real‑world study collaboration evaluating PEDMARK in broader patient groups.
Feb 20	Real‑world data	Positive	-0.5%	Presented adult head & neck cancer data supporting feasibility and tolerability.

Pattern Detected

Recent history shows mixed to negative price reactions, including selloffs after seemingly positive fundamentals and clinical updates, suggesting a tendency toward skeptical or profit‑taking responses around news.

Recent Company History

Over the past six weeks, Fennec has reported multiple milestones: an earnings update with strong PEDMARK sales growth but a wider loss on March 24, a settlement on March 16 limiting generic entry until 2033, and new clinical collaborations plus real‑world data supporting PEDMARK use in adults. Price reactions have been mixed, with sharp downside after earnings (about -19%) but modest gains on de‑risking and data‑driven announcements. Today’s inducement grants slot into this sequence as a routine compensation‑related event rather than a strategic pivot.

Market Pulse Summary

This announcement details standard inducement stock option grants for 24 new non‑executive employees...

Analysis

This announcement details standard inducement stock option grants for 24 new non‑executive employees, covering 377,500 shares at an exercise price of $5.77 and a 10‑year term with staged vesting over three years. Set against recent earnings, litigation settlement, and clinical updates, it signals ongoing team expansion to support PEDMARK’s commercialization. Investors may watch future filings for how overall equity compensation trends alongside revenue growth and operating expense levels.

Key Terms

nasdaq listing rule 5635(c)(4), incentive stock option

2 terms

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.

incentive stock option financial

"approved the grant of incentive stock option awards (“ISOs”) to purchase"

An incentive stock option is a type of employee benefit that gives a worker the right to buy company shares at a fixed price, with special tax advantages if the employee holds the shares for a required period. Think of it as a coupon to buy future shares at today’s price that can result in lower tax on the gain. Investors care because ISOs can dilute share count, align staff incentives with the stock price, and affect company compensation costs and the timing of potential share sales.

AI-generated analysis. Not financial advice.

RESEARCH TRIANGLE PARK, N.C., March 31, 2026 (GLOBE NEWSWIRE) -- Fennec Pharmaceuticals Inc. (NASDAQ:FENC) (TSX:FRX) (“Fennec” or the “Company”), a specialty pharmaceutical company, today announced that on March 17, 2026, the Compensation Committee of the Company’s Board of Directors approved the grant of incentive stock option awards (“ISOs”) to purchase an aggregate of 377,500 of the Company’s common shares to 24 new non-executive employees of the Company with a grant date of March 31, 2026 under the Company’s 2026 Equity Inducement Plan (the “Inducement Plan”). The ISOs were granted as inducements material to the employees entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).

The Inducement Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of the Company, or following a bona fide period of non-employment, as an inducement material to such individuals’ entering into employment with the Company, pursuant to Nasdaq Listing Rule 5635(c)(4).

All ISOs have an exercise price of $5.77 per share, which is equal to the closing price of the Company’s common shares on The Nasdaq Capital Market on March 30, 2026, and a term of ten years from the date of grant. One-third of the shares underlying each ISO vest on the one-year anniversary of the grant date and continue to vest monthly thereafter over 24 months, subject to each employee’s continued employment with Company as of each such vesting date. The stock options are subject to the terms and conditions of the Inducement Plan and the terms and conditions of an ISO agreement covering the grant.

About Fennec Pharmaceuticals

Fennec Pharmaceuticals Inc. is a specialty pharmaceutical company committed to the fight against ototoxicity in cancer patients who receive cisplatin-based chemotherapy. Fennec is focused on the commercialization of PEDMARK^® to reduce the risk of platinum-induced ototoxicity in cancer patients. PEDMARK^® received FDA approval in September 2022 and European Commission approval in June 2023 and United Kingdom (U.K.) approval in October 2023 under the brand name PEDMARQSI^®.

In March 2024, Fennec entered into an exclusive licensing agreement under which Norgine Pharmaceuticals Ltd., a leading European specialist pharmaceutical company, will commercialize PEDMARQSI^® in Europe, U.K., Australia and New Zealand. PEDMARQSI^® is now commercially available in the U.K. and Germany.

PEDMARK^® has received Orphan Drug Exclusivity in the U.S. and PEDMARQSI^® has received Pediatric Use Marketing Authorization in Europe which includes eight years plus two years of data and market protection.

For more information, please visit www.fennecpharma.com and follow on LinkedIn.

Forward Looking Statements

Except for historical information described in this press release, all other statements are forward-looking. Words such as “believe,” “anticipate,” “plan,” “expect,” “estimate,” “intend,” “may,” “will,” or the negative of those terms, and similar expressions, are intended to identify forward-looking statements. These forward-looking statements include statements about the Company’s business strategy, timeline and other goals, plans and prospects, including the Company’s commercialization plans respecting PEDMARK^®/PEDMARQSI^®, the market opportunity for and market impact of PEDMARK^®/ PEDMARQSI^®, its potential impact on patients and anticipated benefits associated with its use, future commercial and regulatory milestone and royalty payments from Norgine, and potential access to further funding after the date of this release. Forward-looking statements are subject to certain risks and uncertainties inherent in the Company’s business that could cause actual results to vary, including the risks and uncertainties that regulatory and guideline developments may change, scientific data and/or manufacturing capabilities may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals, clinical results may not be replicated in actual patient settings, unforeseen global instability, including political instability, or instability from an outbreak of pandemic or contagious disease, such as the novel coronavirus (COVID-19), or surrounding the duration and severity of an outbreak, protection offered by the Company’s patents and patent applications may be challenged, invalidated or circumvented by its competitors, the available market for the Company’s products will not be as large as expected, the Company’s products will not be able to penetrate one or more targeted markets, revenues will not be sufficient to fund further development and clinical studies, the Company’s ability to obtain necessary capital when needed on acceptable terms or at all, the Company may not meet its future capital requirements in different countries and municipalities, and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission including its Annual Report on Form 10-K for the year ended December 31, 2025. Fennec disclaims any obligation to update these forward-looking statements except as required by law.

For a more detailed discussion of related risk factors, please refer to the Company’s public filings available at www.sec.gov and www.sedar.com.

PEDMARK^®, PEDMARQSI^® and Fennec^® are registered trademarks of Fennec Pharmaceuticals Inc.

©2025 Fennec Pharmaceuticals Inc. All rights reserved

For further information, please contact:

Investors:
Robert Andrade
Chief Financial Officer
Fennec Pharmaceuticals Inc.
+1 919-246-5299

Corporate and Media:
Lindsay Rocco
Elixir Health Public Relations
+1 862-596-1304
lrocco@elixirhealthpr.com

FAQ

What did Fennec Pharmaceuticals (FENC) grant on March 31, 2026?

Fennec granted incentive stock options covering 377,500 shares to 24 new non-executive hires. According to the company, the ISOs were issued under its 2026 Equity Inducement Plan as inducements material to new employment.

What is the exercise price and term for the FENC inducement stock options?

The inducement ISOs have an exercise price of $5.77 and a 10-year term. According to the company, $5.77 equals the Nasdaq closing price on March 30, 2026, and options expire ten years after grant.

How do the FENC inducement options vest for new employees?

Each ISO vests one-third on the one-year anniversary, then vests monthly over the following 24 months. According to the company, continued employment is required for each vesting date under the ISO agreements.

Under which plan were the FENC inducement awards granted and why?

The ISOs were granted under the 2026 Equity Inducement Plan to new hires as required by Nasdaq Rule 5635(c)(4). According to the company, the plan is used exclusively for inducement awards to new employees.

Who received the inducement grants from Fennec (FENC) and how many employees were involved?

Twenty-four new non-executive employees received inducement ISOs covering a total of 377,500 shares. According to the company, these awards were approved by the Compensation Committee on March 17, 2026.

Will the FENC inducement option grants immediately dilute existing shareholders?

The grants create potential dilution if options are exercised, but immediate dilution depends on future exercises and outstanding share count. According to the company, the ISOs are subject to exercise, vesting, and plan terms before any share issuance.