Korro Bio Reports Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Korro Bio (Nasdaq: KRRO) granted a non-statutory stock option as an inducement award to one newly hired employee under its 2026 Inducement Plan, in line with Nasdaq Listing Rule 5635(c)(4).

Rhea-AI Summary

Korro Bio (Nasdaq: KRRO) granted a non-statutory stock option as an inducement award to one newly hired employee under its 2026 Inducement Plan, in line with Nasdaq Listing Rule 5635(c)(4).

The option covers 3,000 shares at an exercise price of $11.20 per share, has a ten-year term, and vests over four years based on continued service.

Argus May 18 session

-2.06% close to close Open Argus

Details

News Market Reaction – KRRO

In the May 18 session, KRRO declined 2.06%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details a routine inducement grant of a non-statutory stock option for 3,000 share...

Analysis

This announcement details a routine inducement grant of a non-statutory stock option for 3,000 shares at an exercise price of $11.20, vesting over four years under Nasdaq Listing Rule 5635(c)(4). It follows recent disclosures of $157.1 million in cash and securities, ongoing pipeline advancement, and a resale registration covering 7,650,764 shares. Investors may focus on how such equity awards fit within overall dilution from private placements and registered resales.

Key Figures

Inducement option size: 3,000 shares Exercise price: $11.20 per share Option term: 10 years +5 more

Inducement option size

3,000 shares

Non-statutory stock option grant to one new employee

Exercise price

$11.20 per share

Option exercise price, equal to Nasdaq closing price on May 13, 2026

Option term

10 years

Term of inducement non-statutory stock option

Shares in resale registration

7,650,764 shares

Common stock registered for resale under prospectus supplement

Quarterly net loss

$19.6 million

Net loss for quarter ended March 31, 2026

Cash and securities

$157.1 million

Cash, cash equivalents and marketable securities as of March 31, 2026

Shares outstanding

14,422,571 shares

Common shares outstanding as of March 11, 2026

Beneficial ownership stake

10.7%

Lynx1 Capital Management LP and Weston Nichols reported stake

Historical Context

5 past events · Latest: 2026-05-07

5 events

1. 2026-05-07

   earnings

   24h Move

   -3.4%

   Reported Q1 2026 results, cash position and pipeline update including KRRO-121.

2. 2026-05-05

   conferences

   24h Move

   +6.0%

   Announced participation in May 2026 investor conferences with executive presenters.

3. 2026-04-16

   conferences

   24h Move

   -1.5%

   Detailed upcoming scientific conference presentations on OPERA RNA-editing platform data.

4. 2026-04-10

   news

   24h Move

   +8.0%

   Reported an inducement stock option grant to a new hire under Nasdaq Rule 5635(c)(4).

5. 2026-03-12

   earnings

   24h Move

   +11.3%

   Released FY 2025 results, KRRO-121 nomination, AATD progress and $85M placement.

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

Key Terms

oligonucleotide, non-statutory stock option, exercise price, vesting, +1 more

5 terms

oligonucleotide medical

"leveraging a novel Oligonucleotide Promoted Editing of RNA (OPERA®) platform"

A short chain of DNA or RNA molecules used to target, detect, or change specific genetic messages inside cells; think of it as a tiny, programmable instruction or zip code that can find and bind one exact genetic sentence. Investors care because oligonucleotides are the active ingredient in a growing class of precision therapies and diagnostics, so their success, manufacturing cost, and regulatory approval can directly affect a company's value and future revenue.

non-statutory stock option financial

"announced the grant of a non-statutory stock option to one newly hired employee"

A non-statutory stock option is a company-granted right that lets a person buy shares later at a set price but does not receive special tax-favored treatment under tax law. It matters to investors because when the option is used the holder usually pays ordinary income tax on the gain and the company records compensation cost and issues new shares, which can reduce existing owners’ percentage ownership—think of it like a coupon to buy stock that creates a taxable event and some dilution.

exercise price financial

"to purchase 3,000 shares ... at an exercise price of $11.20 per share"

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.

vesting financial

"The option has a ten-year term and vests over four years, with 25% of the shares vesting"

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.

nasdaq listing rule 5635(c)(4) regulatory

"was made as an inducement ... 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.

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CAMBRIDGE, Mass., May 15, 2026 (GLOBE NEWSWIRE) -- Korro Bio, Inc. (Korro) (Nasdaq: KRRO), a biopharmaceutical company leveraging a novel Oligonucleotide Promoted Editing of RNA (OPERA^®) platform to develop a new class of genetic medicines for rare and highly prevalent diseases, today announced the grant of a non-statutory stock option to one newly hired employee.

Korro granted the new employee a nonstatutory stock option to purchase 3,000 shares of Korro’s common stock at an exercise price of $11.20 per share, the closing price per share of Korro's common stock as reported by Nasdaq on the grant effective date, May 13, 2026. The option has a ten-year term and vests over four years, with 25% of the shares vesting on the first anniversary of the employee’s start date and the remaining 75% vesting in 36 equal monthly installments on each monthly anniversary thereafter until the fourth anniversary of the employee’s start date, subject to the employee’s continued service with Korro through each applicable vesting date.

This grant was approved by Korro’s independent Compensation Committee pursuant to Korro’s 2026 Inducement Plan and was made as an inducement material to the employee’s acceptance of employment with Korro in accordance with Nasdaq Listing Rule 5635(c)(4).

About Korro

Korro is a biopharmaceutical company leveraging a novel Oligonucleotide Promoted Editing of RNA (OPERA^®) platform to develop a new class of genetic medicines for rare and highly prevalent diseases. OPERA provides precise, tissue-directed delivery of oligonucleotides that modify the targeted native mRNA transcript to repair or form a de-novo protein with enhanced functionality. The platform combines a suite of capabilities consisting of sophisticated knowledge of transcription biology through ADAR proteins (Adenosine Deaminases Acting on RNA), machine learning optimization of oligonucleotides, linker chemistry expertise, along with use of a highly targeted tissue-specific delivery methodology.  As such, the OPERA platform has enabled Korro to generate and advance a portfolio of differentiated programs that are designed to harness the body’s natural RNA editing process, providing precise yet transient single base edits to produce therapeutic proteins with augmented activity versus its endogenous counterpart. By editing RNA instead of DNA, Korro is expanding the reach of genetic medicines by delivering additional precision and tunability, which has the potential for increased specificity and improved long-term tolerability. Using an oligonucleotide-based approach, Korro expects to bring its medicines to patients by leveraging its proprietary OPERA platform with precedented delivery modalities, including N-acetylgalactosamine (GalNAc) conjugated for delivery for subcutaneous administration, manufacturing know-how, and established regulatory pathways of approved oligonucleotide medicines. Korro is based in Cambridge, Massachusetts. For more information, visit korrobio.com.

Korro Bio Contact Information  

Investor & Media Contact 
Malini Chatterjee, Ph.D
Blueprint Life Science Group
mchatterjee@bplifescience.com or ir@korrobio.com
917.330.4269

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What stock option grant did Korro Bio (KRRO) announce on May 15, 2026?

Korro Bio announced a non-statutory stock option grant to one new employee for 3,000 shares of common stock. According to Korro Bio, the option was issued as an inducement grant under its 2026 Inducement Plan.

What is the exercise price of the new Korro Bio (KRRO) inducement stock option?

The inducement stock option has an exercise price of $11.20 per share. According to Korro Bio, this equals the closing price of its common stock on Nasdaq on the grant effective date, May 13, 2026.

How does the Korro Bio (KRRO) inducement option vest for the new employee?

The option vests over four years, with 25% vesting on the first anniversary of the employee’s start date. According to Korro Bio, the remaining 75% vests in 36 equal monthly installments, subject to continued service.

Under which plan was the Korro Bio (KRRO) inducement stock option granted?

The stock option was granted under Korro Bio’s 2026 Inducement Plan. According to Korro Bio, it was approved by the independent Compensation Committee as an inducement material to the employee’s acceptance of employment.

How does Nasdaq Listing Rule 5635(c)(4) relate to Korro Bio’s May 2026 grant?

Korro Bio stated the option was granted in accordance with Nasdaq Listing Rule 5635(c)(4), which allows equity awards as material inducements to new employees. The grant is intended to support recruitment of the new hire.

What is the term length of the new Korro Bio (KRRO) inducement stock option?

The inducement stock option has a ten-year term from the grant effective date. According to Korro Bio, the option remains exercisable subject to the vesting schedule and the employee’s continued service with the company.