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

(Neutral)

(Very Positive)

Rhea-AI Summary

Milestone Pharmaceuticals (Nasdaq:MIST) granted a total of 288,000 stock options under its 2021 Inducement Plan as a material inducement for hiring six new employees, in line with Nasdaq Listing Rule 5635(c)(4).

The options, dated July 1, 2026, have a $1.32 exercise price and four-year vesting.

Market Context

The company’s grant of 288,000 inducement options at the prevailing $1.32 share price highlights ong...

Analysis

The company’s grant of 288,000 inducement options at the prevailing $1.32 share price highlights ongoing hiring while an effective S-3 shelf and elevated short positioning remain key context; future equity usage and insider activity merit close monitoring.

Key Figures

Option grant size: 288,000 options Exercise price: $1.32 per share New hires: 6 employees +4 more

7 metrics

Option grant size 288,000 options Total options granted under 2021 Inducement Plan

Exercise price $1.32 per share Equal to closing price on July 1, 2026 grant date

New hires 6 employees Equity inducement grants tied to new employee hires

Vesting period 4 years Options vest over four-year period

Cliff vesting 25% Vests on one-year anniversary of vesting commencement date

Monthly installments 36 installments Remaining shares vest in 36 equal monthly installments

Grant date July 1, 2026 Date on which options were granted

Historical Context

5 past events · Latest: Jun 23 (Neutral)

5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 23	leadership change	Neutral	-0.8%	Board leadership transition with election of new chairman at peer company.
May 14	conference appearance	Neutral	-5.2%	Announcement of management presentation at a BioConnect investor conference.
May 13	earnings report	Neutral	-9.5%	First quarter 2026 financial results and commercial/clinical development update.
May 06	earnings date notice	Neutral	+4.8%	Scheduling of first quarter 2026 results release and conference call.
Apr 10	clinical program update	Neutral	+0.5%	Launch of RESET-PSVT registry to gather real-world data on CARDAMYST.

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), inducement plan

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.

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.

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

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07/02/2026 - 09:30 PM

MONTREAL and CHARLOTTE, N.C., July 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 288,000 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 six new employees.

The Options have a grant date of July 1, 2026, and an exercise price of $1.32 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 an emerging commercial-stage biopharmaceutical company advancing 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 control of symptomatic episodic attacks associated with AFib-RVR.

Contact:
Kevin Gardner kgardner@lifesciadvisors.com

FAQ

What equity awards did Milestone Pharmaceuticals (MIST) grant on July 1, 2026?

Milestone Pharmaceuticals granted 288,000 stock options on July 1, 2026 as inducement awards. According to Milestone, these options were issued under its 2021 Inducement Plan to six new employees, in compliance with Nasdaq Listing Rule 5635(c)(4).

What is the exercise price of the new Milestone Pharmaceuticals (MIST) inducement stock options?

The inducement stock options have an exercise price of $1.32 per share. According to Milestone, this price equals the closing price of its common shares on the July 1, 2026 grant date, aligning the awards with then-current market value.

How do Milestone Pharmaceuticals (MIST) inducement options vest for the new employees?

Milestone’s inducement options vest over four years with a time-based schedule. According to Milestone, 25% vests on the one-year anniversary, and the remaining shares vest in 36 equal monthly installments, subject to continuous service and plan terms.

Why did Milestone Pharmaceuticals (MIST) use Nasdaq Listing Rule 5635(c)(4) for these option grants?

Milestone used Nasdaq Listing Rule 5635(c)(4) to grant options as a material hiring inducement. According to Milestone, its 2021 Inducement Plan is used exclusively for awards to individuals not previously employed, or after a bona fide non-employment period.

Who is eligible to receive awards under the Milestone Pharmaceuticals (MIST) 2021 Inducement Plan?

Eligibility is limited to new hires or rehires after a bona fide non-employment period. According to Milestone, the plan is used only for equity awards that serve as a material inducement to enter employment, consistent with Nasdaq Listing Rule 5635(c)(4).