TELA Bio Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

TELA Bio announced the approval of inducement grants for Jim Hagen, the company's new Senior Vice President of Strategic Commercial Operations. The compensation package includes options to purchase 75,000 shares of common stock at $1.42 per share and restricted stock units covering 30,000 shares. The stock options have a 10-year term with a 4-year vesting schedule: 25% vesting after one year and the remaining 75% vesting monthly over 36 months. The restricted stock units will vest in equal annual installments over four years. These equity awards were granted under Nasdaq Rule 5635(c)(4) as part of Hagen's employment compensation package.

Positive

• New senior executive hire strengthening the commercial operations leadership
• Structured compensation package aligning executive interests with long-term company performance through 4-year vesting period

Negative

• None.

MALVERN, Pa., June 06, 2025 (GLOBE NEWSWIRE) -- TELA Bio, Inc. ("TELA Bio") (NASDAQ: TELA), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's own anatomy, today announced that the Compensation Committee of the Board of Directors of TELA Bio approved inducement grant of an option to purchase 75,000 shares of its common stock and restricted stock units covering 30,000 shares of its common stock to Jim Hagen, the Company’s Senior Vice President – Strategic Commercial Operations, with a grant date of June 2, 2025 (the "Grant Date"). The equity awards were granted pursuant to the Nasdaq Rule 5635(c)(4) inducement grant exception as a component of Mr. Hagen’s employment compensation and were granted as an inducement material to his acceptance of employment with TELA Bio.

The stock options have an exercise price equal to $1.42 per share, the closing price of TELA Bio's common stock as reported on the Nasdaq Global Market on the Grant Date. The stock options have a ten-year term and vest over four years, with 25% of the shares underlying the stock option vesting on the first anniversary of the Grant Date and the remaining 75% of the shares vesting in equal monthly installments over 36 months thereafter. The restricted stock units will vest in equal annual installments over four years. The equity awards are subject to Mr. Hagen’s continued service with TELA Bio through the applicable vesting dates.

About TELA Bio, Inc.

TELA Bio, Inc. (NASDAQ: TELA) is a commercial-stage medical technology company focused on providing innovative technologies that optimize clinical outcomes by prioritizing the preservation and restoration of the patient's own anatomy. The Company is committed to providing surgeons with advanced, economically effective soft-tissue reconstruction solutions that leverage the patient's natural healing response while minimizing long-term exposure to permanent synthetic materials. For more information, visit www.telabio.com.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations are forward-looking statements and reflect the current beliefs of TELA Bio's management. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors that could cause actual results and events to differ materially and adversely from those indicated by such forward-looking statements. These risks and uncertainties are described more fully in the "Risk Factors" section and elsewhere in our filings with the Securities and Exchange Commission and available at www.sec.gov, including in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Any forward-looking statements that we make in this announcement speak only as of the date of this press release, and TELA Bio assumes no obligation to update forward-looking statements whether as a result of new information, future events or otherwise after the date of this press release, except as required under applicable law.

Investor Contact
Louisa Smith
ir@telabio.com

FAQ

What inducement grants did TELA Bio (TELA) announce for Jim Hagen?

TELA Bio announced stock options for 75,000 shares at $1.42 per share and restricted stock units for 30,000 shares, both vesting over four years.

Who is Jim Hagen at TELA Bio (TELA)?

Jim Hagen is TELA Bio's new Senior Vice President of Strategic Commercial Operations.

What is the vesting schedule for TELA Bio's stock options granted to Jim Hagen?

The stock options vest 25% after the first year, with the remaining 75% vesting in equal monthly installments over 36 months.

What was the exercise price for TELA Bio's stock options granted on June 2, 2025?

The stock options have an exercise price of $1.42 per share, which was TELA Bio's closing price on the Nasdaq Global Market on June 2, 2025.