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

Rhea-AI Summary

TELA Bio (NASDAQ: TELA) announced inducement restricted stock unit grants to three newly hired employees totaling 3,600 shares, with a grant date of December 9, 2025. The Compensation Committee approved the awards under the Nasdaq Rule 5635(c)(4) inducement exception as part of each hire's employment compensation.

The restricted stock units vest in equal annual installments over four years, subject to each employee's continued service through applicable vesting dates.

Key Figures

RSU shares granted 3,600 shares Inducement RSUs to three new employees, Grant Date Dec 9, 2025

Employees receiving grants 3 employees New hires receiving RSU inducement awards

Vesting period 4 years RSUs vest in equal annual installments over four years

Market Reality Check

$1.15 Last Close

Volume Volume 106,690 is about 70% below the 20-day average of 360,670, indicating muted trading ahead of this routine HR-related news. low

Technical Shares at $1.13 are trading below the 200-day MA of $1.54 and sit 63.54% under the 52-week high.

Peers on Argus

Peers show mixed moves: ELUT and LUNG are up (0.37%, 1.62%), while APYX, ICCM, and XTNT are down (-0.99% to -3.89%). With TELA down 3.42% and no momentum scanner signals, today’s setup appears company-specific rather than a broad Medical Devices sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 19	Conference participation	Neutral	-8.5%	Announcement of presentation at Piper Sandler healthcare investor conference.
Nov 17	Inducement equity awards	Neutral	+14.1%	Inducement RSUs and stock option grants for new employees under Nasdaq rules.
Nov 13	Equity offering	Negative	-2.6%	Pricing of $13.0M registered direct offering of common stock and pre-funded warrants.
Nov 13	Earnings and financing	Positive	-2.6%	Q3 2025 growth, narrowed losses, and new $70M credit facility announcement.
Nov 04	Earnings date notice	Neutral	-5.8%	Scheduling notice for upcoming Q3 2025 earnings release and conference call.

Pattern Detected

Recent TELA headlines have mostly been neutral or financing-related, yet price reactions skew negative, with one positive move on prior inducement grants and a divergence where fundamentally positive Q3 results coincided with a price decline.

Recent Company History

Over the last few months, TELA reported Q3 2025 revenue of $20.7M with a 67.5% gross margin and narrowed losses, alongside revised 2025 revenue guidance to at least +16% versus 2024. The company also refinanced and upsized a credit facility up to $70M and completed a $13.0M registered direct offering with common stock and pre-funded warrants. Other updates involved conference participation and prior inducement equity awards under Nasdaq Rule 5635(c)(4). Today’s small RSU inducement grants fit this pattern of ongoing capital structure and HR-related news.

Market Pulse Summary

This announcement details a modest inducement grant of 3,600 restricted stock units to three new employees under Nasdaq Rule 5635(c)(4), vesting over four years. It follows a series of recent financing, earnings, and governance updates. Investors may focus on how ongoing equity awards and earlier capital raises interact with the company’s Q3 2025 growth, narrowed losses, and new credit facility when assessing overall dilution and incentives.

Key Terms

restricted stock units financial

"approved inducement grants of restricted stock units covering 3,600 shares"

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

Nasdaq Rule 5635(c)(4) regulatory

"granted pursuant to the Nasdaq Rule 5635(c)(4) inducement grant exception"

NASDAQ Rule 5635(c)(4) is a listing standard that requires a company to obtain shareholder approval before issuing a substantial number of new shares or convertible securities in certain financing or insider-related transactions that would materially dilute existing holders. It matters to investors because the vote gives shareholders a check on deals that could significantly change ownership stakes or voting power—like a homeowners’ association approving a major renovation that affects the whole neighborhood’s value.

AI-generated analysis. Not financial advice.

MALVERN, Pa., Dec. 12, 2025 (GLOBE NEWSWIRE) -- TELA Bio, Inc. ("TELA Bio") (NASDAQ: TELA), a commercial-stage medical technology company focused on providing innovative soft-tissue reconstruction solutions, today announced that the Compensation Committee of the Board of Directors of TELA Bio approved inducement grants of restricted stock units covering 3,600 shares of its common stock to three newly-hired employees, with a grant date of December 9, 2025 (the "Grant Date"). The restricted stock units were granted pursuant to the Nasdaq Rule 5635(c)(4) inducement grant exception as a component of each individual's employment compensation and were granted as an inducement material to his or her acceptance of employment with TELA Bio.

The restricted stock units will vest in equal annual installments over four years, subject to each individual'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 did TELA (NASDAQ: TELA) announce on December 12, 2025 about inducement grants?

TELA announced restricted stock unit inducement grants covering 3,600 shares to three newly hired employees, granted under Nasdaq Rule 5635(c)(4) with a Grant Date of December 9, 2025.

How do the restricted stock units granted by TELA vest and over what period?

The restricted stock units vest in equal annual installments over four years, contingent on each individual's continued service to TELA.

Why were the restricted stock units granted under Nasdaq Rule 5635(c)(4) for TELA hires?

They were granted under the Nasdaq Rule 5635(c)(4) inducement exception as a component of each individual's employment compensation and as an inducement for accepting employment.

How many employees received inducement RSU grants from TELA and how many shares in total?

Three newly hired employees received inducement restricted stock unit grants totaling 3,600 shares.

What is the effective grant date for TELA's inducement restricted stock units?

The grant date for the inducement restricted stock units is December 9, 2025.

Do TELA's inducement RSUs require continued employment to vest?

Yes, vesting is subject to each individual's continued service with TELA through the applicable vesting dates.