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

Korro Bio (Nasdaq: KRRO) reported that its Compensation Committee granted a non-statutory stock option to one newly hired employee under the company’s 2026 Inducement Plan, in line with Nasdaq Listing Rule 5635(c)(4).

Rhea-AI Summary

Korro Bio (Nasdaq: KRRO) reported that its Compensation Committee granted a non-statutory stock option to one newly hired employee under the company’s 2026 Inducement Plan, in line with Nasdaq Listing Rule 5635(c)(4).

The option covers 600 shares of common stock at an exercise price of $13.35 per share, equal to the August 12, 2026 Nasdaq closing price. It has a 10-year term and vests over four years: 25% on the first employment anniversary and 75% in 36 equal monthly installments thereafter, subject to continued service. Korro develops genetic medicines using its OPERA RNA-editing platform.

Argus Aug 17 session 1 alert

-1.05% close to close 0.8x rel. volume Open Argus

Details

News Market Reaction – KRRO

$187.73M Market Cap

On Aug 17, the first trading day after this news, KRRO closed 1.05% below the previous close.

Data tracked by StockTitan Argus for the Aug 17 session.

Market Context

A prior inducement-grant announcement preceded a -7.28% 24-hour move, supplying a directly comparabl...

Analysis

A prior inducement-grant announcement preceded a -7.28% 24-hour move, supplying a directly comparable historical reference. Korro’s active S-3 is a resale registration for 7,650,764 shares, while insider context records Net Selling; these are context factors to watch.

Key Figures

Option shares: 600 shares Exercise price: $13.35 per share Option term: Ten years +5 more

Option shares

600 shares

Inducement grant

Exercise price

$13.35 per share

Grant effective date August 12, 2026

Option term

Ten years

Employee stock option

Initial vesting

25%

Shares vesting on the first anniversary

Remaining vesting

75%

Shares vesting in monthly installments

Monthly installments

36 installments

Remaining vesting through the fourth anniversary

Listing rule

Nasdaq Listing Rule 5635(c)(4)

Inducement grant compliance

Grant date

August 12, 2026

Grant effective date

Historical Context

5 past events · Latest: Aug 06

5 events

1. Aug 06

   2Q26 earnings report

   24h Move

   +5.4%

   Reported cash growth, narrowed net loss, and advanced RNA-editing programs

2. Jul 10

   Inducement grant

   24h Move

   -7.3%

   Granted options covering 23,000 shares to seven newly hired employees

3. May 27

   Conference presentation

   24h Move

   +11.6%

   Announced a scheduled Jefferies Global Healthcare Conference presentation

4. May 19

   Development candidate selection

   24h Move

   -8.2%

   Selected KRRO-111 after reporting positive preclinical RNA-editing results

5. May 15

   Inducement grant

   24h Move

   -2.1%

   Granted a 3,000-share employee stock option under inducement plan

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

Key Terms

non-statutory stock option, nasdaq listing rule 5635(c)(4), oligonucleotide, mRNA, +1 more

5 terms

non-statutory stock option financial

"Korro granted the new employee a nonstatutory stock option to purchase 600 shares"

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.

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.

oligonucleotide medical

"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.

mRNA technical

"modify the targeted native mRNA transcript"

mRNA, short for messenger ribonucleic acid, is a biological molecule that carries instructions from a cell’s genetic blueprint to make specific proteins — like a recipe or software code that tells a kitchen or computer what to produce. Investors care because mRNA is used as a flexible drug and vaccine platform that can be developed and scaled faster than many traditional medicines; its commercial prospects, manufacturing needs, regulatory approval path, and patent position can strongly affect a company’s value.

ADAR proteins medical

"knowledge of transcription biology through ADAR proteins"

Proteins in the ADAR family are enzymes that chemically edit RNA by changing specific adenosine letters into inosine, which cells read as guanosine; this editing can alter how genes are expressed without changing the underlying DNA. Investors care because ADAR activity is central to some drug and diagnostic strategies—like RNA therapeutics, biomarkers, and gene‑editing platforms—so discoveries or regulatory changes around ADARs can affect the value and risk of related biotech programs.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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CAMBRIDGE, Mass., Aug. 14, 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 600 shares of Korro’s common stock at an exercise price of $13.35 per share, the closing price per share of Korro's common stock as reported by Nasdaq on the grant effective date, August 12, 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 August 14, 2026?

Korro Bio announced a non-statutory stock option grant for one new employee covering 600 shares of common stock. According to Korro, the option was issued under its 2026 Inducement Plan as a material inducement to the employee’s hiring, consistent with Nasdaq Listing Rule 5635(c)(4).

What are the key terms of the Korro Bio (KRRO) inducement stock option granted in August 2026?

The option allows purchase of 600 shares at an exercise price of $13.35 per share, matching the August 12, 2026 Nasdaq close. According to Korro, it has a 10-year term and vests over four years, subject to the employee’s continued service.

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

The inducement option vests over four years with a mix of annual and monthly vesting. According to Korro, 25% vests on the first employment anniversary and the remaining 75% vests in 36 equal monthly installments, contingent on continued service through each vesting date.

Why did Korro Bio use Nasdaq Listing Rule 5635(c)(4) for this KRRO stock option grant?

Korro used Nasdaq Listing Rule 5635(c)(4) to grant the option as an employment inducement award outside shareholder-approved plans. According to Korro, this grant under the 2026 Inducement Plan was a material inducement to the new employee’s acceptance of employment with the company.

Does the August 2026 Korro Bio (KRRO) inducement grant materially affect existing shareholders?

The announcement describes a single option for 600 shares, which is a small issuance relative to typical public company share counts. According to Korro, the grant is part of its 2026 Inducement Plan and is tied specifically to one new hire’s compensation.

What does Korro Bio (KRRO) do and what is its OPERA platform?

Korro Bio develops genetic medicines using its OPERA RNA-editing platform. According to Korro, OPERA uses oligonucleotides to precisely edit native mRNA, enabling transient single-base edits that can repair or create proteins, with tissue-directed delivery and potential for improved specificity and long-term tolerability.