Milestone Pharmaceuticals Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Milestone Pharmaceuticals (Nasdaq: MIST) granted a total of 123,000 stock options under its 2021 Inducement Plan as material inducements for three new hires.

Rhea-AI Summary

Milestone Pharmaceuticals (Nasdaq: MIST) granted a total of 123,000 stock options under its 2021 Inducement Plan as material inducements for three new hires. The options were granted with an April 1, 2026 grant date and an exercise price of $1.31, equal to the closing share price on that date. The options vest over four years (25% after one year, then monthly over 36 months) and are subject to continuous service and the Plan's terms pursuant to Nasdaq Listing Rule 5635(c)(4).

Argus Apr 2 session

+5.34% close to close Open Argus

Details

News Market Reaction – MIST

On Apr 2, the day this news came out, MIST closed 5.34% above the previous close.

Data tracked by StockTitan Argus for the Apr 2 session.

Key Figures

Inducement options granted: 123,000 options Exercise price: $1.31 per share New hires: 3 employees +3 more

Inducement options granted

123,000 options

Granted under 2021 Inducement Plan to three new employees

Exercise price

$1.31 per share

Equal to closing price on April 1, 2026 grant date

New hires

3 employees

Options granted as material inducement to hiring

Vesting duration

4 years

Options vest over four years subject to continuous service

Initial vesting tranche

25%

Vests on the one-year anniversary of vesting commencement date

Remaining installments

36 monthly installments

Balance vests in 36 successive equal monthly installments

Historical Context

5 past events · Latest: Mar 31

5 events

1. Mar 31

   Formulary access win

   24h Move

   +17.8%

   CARDAMYST added to Express Scripts commercial national formularies, broadening access.

2. Mar 20

   Earnings and launch

   24h Move

   -20.0%

   Reported CARDAMYST approval, U.S. launch and liquidity runway alongside 2025 results.

3. Mar 16

   Clinical data update

   24h Move

   -0.9%

   ACC.26 data showing minimal blood pressure effects and low hypotension/syncope rates.

4. Mar 12

   Earnings call notice

   24h Move

   +2.3%

   Announcement of date and access details for Q4 and full-year 2025 results call.

5. Feb 26

   Conference participation

   24h Move

   -0.6%

   Planned presentation at TD Cowen health care conference with webcast access.

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

Key Terms

nasdaq listing rule 5635(c)(4), equity awards, stock options, inducement plan

4 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.

equity awards financial

"the Company granted equity awards, in the form of a total of 123,000 options"

Equity awards are payments to employees or directors made in the form of company stock or rights to buy stock later, serving as a way to share ownership rather than cash. For investors, they matter because they align staff incentives with company performance, can increase the number of shares outstanding over time (which can reduce each share’s claim on profits), and create compensation costs that affect reported earnings.

stock options financial

"123,000 options (the “Options”) to purchase the Company’s common shares"

Stock options are agreements that give a person the right to buy or sell a company's stock at a specific price within a certain time frame. They are often used as a reward or incentive, similar to a coupon that can be used later if the stock price rises, allowing the holder to make a profit.

inducement plan financial

"pursuant to the Company’s 2021 Inducement Plan (the “Plan”)"

An inducement plan is a program a company creates to encourage employees or new hires to stay or join by offering special benefits or rewards. It’s like a company giving extra bonuses or perks to persuade someone to choose their job over others, helping the company attract and keep talented workers.

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MONTREAL and CHARLOTTE, N.C., April 02, 2026 (GLOBE NEWSWIRE) -- Milestone Pharmaceuticals Inc. (Nasdaq: MIST) (the “Company” or “Milestone”), today announced that the Company granted equity awards, in the form of a total of 123,000 options (the “Options”) to purchase the Company’s common shares, pursuant to the Company’s 2021 Inducement Plan (the “Plan”), previously approved by the Company’s Compensation Committee and the Board of Directors, as a material inducement to the hiring of three new employees. 

The Options have a grant date of April 1, 2026, and an exercise price of $1.31 per share, which is equal to the closing price of Milestone’s common shares on the grant date. The shares subject to the Options will vest over four years, with 25% of the shares vesting on the one-year anniversary of the vesting commencement date and the balance of the shares vesting in a series of 36 successive equal monthly installments thereafter.

The Option awards are subject to the award holder’s continuous service through each vesting date and to the terms and conditions of the Plan and its standard forms of grant agreements thereunder.

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

About Milestone Pharmaceuticals

Milestone Pharmaceuticals Inc. (Nasdaq: MIST) is a biopharmaceutical company developing and commercializing innovative cardiovascular medicines to benefit people living with certain heart conditions. Milestone’s lead product is CARDAMYST™ (etripamil) nasal spray, a novel calcium channel blocker, which is FDA approved for the conversion of acute symptomatic episodes of paroxysmal supraventricular tachycardia (PSVT) to sinus rhythm in adults. Etripamil is also in development for the treatment of symptomatic episodic attacks associated with AFib-RVR.

Contact:
Kevin Gardner kgardner@lifesciadvisors.com

FAQ

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

What did Milestone Pharmaceuticals (MIST) announce on April 2, 2026 about inducement grants?

Milestone announced it granted 123,000 options as inducement awards for three new employees. According to the company, the options have an April 1, 2026 grant date and an exercise price equal to the closing share price of $1.31.

How do the MIST inducement options vest and what is the vesting schedule?

The options vest over four years: 25% vests after one year, then the remainder vests monthly over 36 months. According to the company, vesting is subject to continuous service and the Plan's standard grant agreement terms.

What is the exercise price for the April 1, 2026 MIST option grants?

The exercise price is $1.31 per share, equal to the closing price on the grant date. According to the company, that price was set on the April 1, 2026 grant date for the 123,000 options issued.

Why did Milestone use its 2021 Inducement Plan for the MIST option awards?

Milestone used the 2021 Inducement Plan to grant equity to new hires as required by Nasdaq rules. According to the company, the Plan is reserved for individuals not previously employed or returning after bona fide non‑employment periods.

How many employees received inducement option awards from Milestone (MIST) in April 2026?

Three new employees received inducement option awards totaling 123,000 options. According to the company, these grants were approved by the compensation committee and board as material inducements to hire those individuals.

Do the MIST inducement option awards require continued employment to vest?

Yes. The options require the award holder's continuous service through each vesting date to realize vesting. According to the company, awards are also subject to the Plan and the standard grant agreement terms and conditions.