Helius Medical Technologies, Inc. Reports Inducement Grants Under Nasdaq Listing Rule 5635(C)(4)

Rhea-AI Summary

Helius Medical Technologies (Nasdaq: HSDT), a neurotech company focused on neurological wellness, has announced the approval of equity awards under its 2021 Inducement Plan. These awards, approved by independent directors on August 14, 2024, serve as material inducements for three new employees joining the company.

The equity awards, granted in accordance with Nasdaq Listing Rule 5635(c)(4), consist of options to purchase a total of 23,500 shares of the Company's Class A common stock. The options have an exercise price of $0.6802 per share, matching the closing price of Helius' common stock on the grant date. These options have a ten-year term and vest over four years, with 25% vesting annually, subject to continued employment and potential acceleration or forfeiture under certain conditions.

Positive

• Helius is attracting new talent with equity incentives, potentially strengthening its workforce
• The company is following Nasdaq listing rules, demonstrating regulatory compliance

Negative

• The equity awards may lead to potential dilution for existing shareholders

NEWTOWN, Pa., Aug. 16, 2024 (GLOBE NEWSWIRE) -- Helius Medical Technologies, Inc. (Nasdaq: HSDT) (“Helius” or the “Company”), a neurotech company focused on neurological wellness, today announced that, effective August 14, 2024, its independent directors approved equity awards under Helius’ 2021 Inducement Plan, as a material inducement to three individuals entering into employment with the Company. The equity awards were approved in accordance with Nasdaq Listing Rule 5635(c)(4), which also requires a public announcement of equity awards that are not made under a stockholder approved equity plan.

In connection with entering into employment with Helius, the three individuals, who were not previous employees or directors of Helius, received options to purchase an aggregate of 23,500 shares of the Company’s Class A common stock. The option awards have an exercise price of $0.6802 per share, the closing price of Helius’ common stock on August 14, 2024, the date of the grant. The options have a ten-year term and vest over a period of four years, with 25% vesting on each of the first, second, third and fourth anniversary of each individual’s hire date, provided the new hire’s employment is continuing on each such date, and subject to acceleration or forfeiture upon the occurrence of certain events as set forth in the new hire’s option agreement.

About Helius Medical Technologies, Inc.

Helius Medical Technologies is a leading neurotech company in the medical device field focused on neurologic deficits using an orally applied technology platform that amplifies the brain’s ability to engage physiologic compensatory mechanisms and promote neuroplasticity, improving the lives of people dealing with neurologic diseases. The Company’s first commercial product is the Portable Neuromodulation Stimulator. For more information about the PoNS® or Helius Medical Technologies, visit www.heliusmedical.com.

About the PoNS Device and PoNS Therapy

The Portable Neuromodulation Stimulator (PoNS) is an innovative, non-implantable, orally applied therapy that delivers neurostimulation through a mouthpiece connected to a controller and it’s used, primarily at home, with physical rehabilitation exercise, to improve balance and gait. The PoNS device, which delivers mild electrical impulses to the tongue, is indicated for use in the United States as a short-term treatment of gait deficit due to mild-to-moderate symptoms from multiple sclerosis (“MS”) and is to be used as an adjunct to a supervised therapeutic exercise program in patients 22 years of age and over by prescription only.

PoNS has shown effectiveness in treating gait or balance and a significant reduction in the risk of falling in stroke patients in Canada, where it received authorization for sale in three indications: (i) for use as a short-term treatment (14 weeks) of gait deficit due to mild and moderate symptoms from stroke and is to be used in conjunction with physical therapy; (ii) for use as a short-term treatment (14 weeks) of chronic balance deficit due to mild-to-moderate traumatic brain injury (“mmTBI”) and is to be used in conjunction with physical therapy; and (iii) for use as a short-term treatment (14 weeks) of gait deficit due to mild and moderate symptoms from MS and is to be used in conjunction with physical therapy. PoNS is also authorized for sale in Australia for short term use by healthcare professionals as an adjunct to a therapeutic exercise program to improve balance and gait. For more information visit www.ponstherapy.com.

Investor Relations Contact:

Lisa M. Wilson, In-Site Communications, Inc.
T: 212-452-2793
E: lwilson@insitecony.com

FAQ

How many shares of Helius Medical Technologies (HSDT) were granted as options to new employees?

Helius Medical Technologies (HSDT) granted options to purchase an aggregate of 23,500 shares of the Company's Class A common stock to three new employees.

What is the exercise price of the options granted by Helius Medical Technologies (HSDT) on August 14, 2024?

The options granted by Helius Medical Technologies (HSDT) on August 14, 2024, have an exercise price of $0.6802 per share, which was the closing price of Helius' common stock on that date.

What is the vesting schedule for the options granted by Helius Medical Technologies (HSDT)?

The options granted by Helius Medical Technologies (HSDT) vest over a period of four years, with 25% vesting on each of the first, second, third, and fourth anniversary of each individual's hire date, subject to continued employment.

Under which plan did Helius Medical Technologies (HSDT) grant these equity awards?

Helius Medical Technologies (HSDT) granted these equity awards under its 2021 Inducement Plan.