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

Rhea-AI Summary

Milestone Pharmaceuticals (Nasdaq: MIST) granted a total of 419,000 stock options as inducement awards to two new employees under its 2021 Inducement Plan.

The options were granted on February 2, 2026 with an exercise price of $1.96 per share (equal to the closing price). The awards vest over four years: 25% at the one-year anniversary, then monthly over 36 months, and are subject to continuous service and Plan terms. The grants were made pursuant to Nasdaq Listing Rule 5635(c)(4) and the Plan is reserved for inducement hires or rehires following non-employment.

News Market Reaction

+0.51%

1 alert

+0.51% News Effect

On the day this news was published, MIST gained 0.51%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Inducement options granted: 419,000 options Exercise price: $1.96 per share Vesting period: 4 years +5 more

8 metrics

Inducement options granted 419,000 options Equity awards to two new employees under 2021 Inducement Plan

Exercise price $1.96 per share Equal to closing price on grant date February 2, 2026

Vesting period 4 years 25% after one year, remainder over 36 monthly installments

Current share price $1.96 Prior close before inducement grant news

52-week high $3.06 MIST trading 35.95% below 52-week high pre-news

52-week low $0.6254 MIST trading 213.4% above 52-week low pre-news

Market cap $162,673,447 Equity value prior to inducement grant announcement

200-day moving average $1.83 Benchmark vs. current price of $1.96 before news

Market Reality Check

Price: $1.87 Vol: Volume 1,421,089 is about...

low vol

$1.87 Last Close

Volume Volume 1,421,089 is about half the 20-day average 2,969,616, indicating subdued trading ahead of this filing-style news. low

Technical Shares trade modestly above the 200-day MA, with price at $1.96 vs. 200-day MA of $1.83.

Peers on Argus

While MIST was up 2.62%, key biotech peers were mixed to positive: ACOG +3.56%, ...

While MIST was up 2.62%, key biotech peers were mixed to positive: ACOG +3.56%, GLSI +9%, KYTX +4.91%, and CYBN +0.12%, with VTYX flat. The move appears driven more by company-specific factors than a broad sector rotation.

Historical Context

5 past events · Latest: Jan 26 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 26	U.S. launch	Positive	-2.0%	Announced U.S. commercial availability of CARDAMYST nasal spray for PSVT.
Jan 06	EMA filing	Positive	+1.5%	EMA accepted MAA for etripamil nasal spray for PSVT treatment in Europe.
Dec 17	Device partner news	Positive	-3.3%	Aptar highlighted its Bidose system as delivery device for CARDAMYST.
Dec 12	FDA approval	Positive	-18.3%	FDA approved CARDAMYST nasal spray as first self-administered PSVT treatment.
Dec 02	Inducement grants	Neutral	-1.5%	Granted 30,000 stock options to new hires under inducement plan.

Pattern Detected

Recent value-creating regulatory milestones for MIST, including FDA approval and U.S. launch of CARDAMYST, often saw muted or negative next-day price reactions, indicating a tendency for the stock to underreact or sell off on good news.

Recent Company History

Over the past few months, Milestone progressed etripamil from FDA approval to U.S. commercial availability of CARDAMYST and EMA acceptance of a MAA in Europe, targeting patient populations over 2 million. Despite these milestones, price reactions to the Dec 12, 2025 FDA approval (-18.31%) and subsequent launch news (-2.02%) were negative. A prior inducement grant on Dec 2, 2025 also saw a small decline (-1.49%), suggesting today’s similar HR action fits an established pattern of limited trading impact.

Market Pulse Summary

This announcement details 419,000 stock options granted under Milestone’s 2021 Inducement Plan at an...

Analysis

This announcement details 419,000 stock options granted under Milestone’s 2021 Inducement Plan at an exercise price of $1.96, vesting over four years, as hiring-related incentives. It follows a series of transformative milestones, including FDA approval and U.S. launch of CARDAMYST and EMA acceptance of an etripamil MAA. Investors may watch how ongoing equity grants interact with existing insider awards and the company’s commercialization progress from its current $162.7M market valuation.

Key Terms

nasdaq listing rule 5635(c)(4), inducement plan, exercise price, vesting commencement date

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.

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.

exercise price financial

"an exercise price of $1.96 per share, which is equal to the closing price"

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 commencement date financial

"on the one-year anniversary of the vesting commencement date"

The vesting commencement date is the starting point when an employee begins earning ownership rights to their promised benefits, such as stock options or retirement contributions. Think of it like the day a savings account is opened—only after this date do the benefits start to grow and become fully available over time. It matters to investors because it marks when the clock begins ticking toward full ownership, affecting the timing and value of these benefits.

AI-generated analysis. Not financial advice.

MONTREAL and CHARLOTTE, N.C., Feb. 03, 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 419,000 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 two new employees. 

The Options have a grant date of February 2, 2026, and an exercise price of $1.96 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

How many options did Milestone (MIST) grant on February 2, 2026?

Milestone granted 419,000 options on February 2, 2026 as inducement awards. According to the company, the grants were made under the 2021 Inducement Plan to hire two new employees and are subject to standard grant agreement terms.

What is the exercise price and vesting schedule for MIST inducement options?

The exercise price is $1.96 per share, equal to the closing price on the grant date. According to the company, the options vest over four years: 25% at one year, then monthly in 36 equal installments thereafter.

Why did Milestone (MIST) use the 2021 Inducement Plan for these grants?

Milestone used the 2021 Inducement Plan to grant awards as material inducements for new hires. According to the company, the Plan is reserved for individuals not previously employed or returning after a bona fide non-employment period.

Do the MIST option awards require continued employment to vest?

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