TELA Bio Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)
Rhea-AI Summary
TELA Bio (NASDAQ: TELA) approved inducement equity grants for its newly hired CEO, Heather Getz, and 11 new employees under Nasdaq Listing Rule 5635(c)(4). Ms. Getz received stock options to purchase an aggregate 2,370,000 shares and restricted stock units (RSUs) covering 500,000 shares, granted on August 3, 2026.
The options include 1,365,000 “Standard Options” with a $0.74 exercise price and 1,005,000 “Premium-Options” at $0.90, each with a ten-year term and four-year vesting. The Compensation Committee also granted RSUs covering 95,500 shares to 11 new hires on August 4, 2026, with all RSUs vesting annually over four years, subject to continued service.
Positive
- CEO equity incentives covering 2,870,000 shares align compensation with share performance over four years
- Premium-priced options for 1,005,000 shares set an exercise price of $0.90, above the $0.74 market close
- New hire RSUs covering 95,500 shares support attraction and retention of 11 employees
Negative
- Equity awards cover 2,965,500 shares, creating potential dilution for existing TELA Bio shareholders
News Explained
The approved inducement awards are compensation grants rather than an immediate issuance of the underlying shares: the RSUs vest over four years and the options carry exercise prices, so existing holders face potential dilution only if shares are later issued under the awards.
AI-generated analysis. How Rhea-AI works. Not financial advice.
MALVERN, Pa., Aug. 05, 2026 (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 Board of Directors of TELA Bio approved inducement grants of stock options to purchase an aggregate of 2,370,000 shares of its common stock and restricted stock units covering 500,000 shares of its common stock to the Company’s newly-hired Chief Executive Officer, Heather Getz, with a grant date of August 3, 2026 (the "Getz Grant Date"). The stock options consist of (i) stock options to purchase 1,365,000 shares of common stock (the “Standard Options”) and (ii) premium-priced stock options to purchase 1,005,000 shares of common stock (the “Premium-Options”). Additionally, the Compensation Committee of the Board of Directors of TELA Bio approved inducement grants of restricted stock units covering 95,500 shares of its common stock to 11 newly-hired employees, with a grant date of August 4, 2026. The stock options and the restricted stock units discussed above were granted pursuant to the Nasdaq Rule 5635(c)(4) inducement grant exception as a component of Ms. Getz’s and each individual's employment compensation and were granted as an inducement material to his or her acceptance of employment with TELA Bio.
The Standard Options have an exercise price equal to
The restricted stock units will vest in equal annual installments over four years, subject to Ms. Getz’s and 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
