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

The equity awards carry two vesting schedules, with all vesting dependent on the recipients' continued service.

Rhea-AI Summary

TELA Bio (NASDAQ: TELA) approved restricted stock unit inducement grants covering 108,550 common shares for four newly hired employees.

The grants, dated November 4, 2026, form part of the employees' compensation under the Nasdaq Rule 5635(c)(4) inducement grant exception. Awards covering 58,550 shares vest in equal annual installments over four years. An award covering 50,000 shares vests fully on the first anniversary of the grant date. All vesting requires the recipient's continued service through the applicable vesting date.

Positive

• None.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.Restricted stock unit grants covering 108,550 common shares create potential dilution as awards vest.

Key Figures

RSUs granted: 108,550 shares Annual-vesting RSUs: 58,550 shares First-anniversary RSUs: 50,000 shares

RSUs granted

108,550 shares

Four newly hired employees

Annual-vesting RSUs

58,550 shares

Equal annual installments over four years, subject to continued service

First-anniversary RSUs

50,000 shares

100% vesting on the first anniversary, subject to continued service

Historical Context

1 past event · Latest: Aug 05

1 event

1. Aug 05

   Inducement grants

   24h Move

   -6.0%

   Prior grants included CEO options and RSUs plus awards to 11 new hires.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

restricted stock units, nasdaq rule 5635(c)(4)

2 terms

restricted stock units financial

"inducement grants of restricted stock units covering 108,550 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. How Rhea-AI works. Not financial advice.

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MALVERN, Pa., Nov. 06, 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 Compensation Committee of the Board of Directors of TELA Bio approved inducement grants of restricted stock units covering 108,550 shares of its common stock to four newly-hired employees, with a grant date of November 4, 2026 (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 inducement grants of restricted stock units covering 58,550 shares of common stock will vest in equal annual installments over four years, subject to each individual's continued service with TELA Bio through the applicable vesting dates. The inducement grant of restricted stock units covering 50,000 shares of common stock will vest 100% on the first anniversary of the Grant Date, subject to the individual's continued service with TELA Bio through the applicable vesting date.

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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How many shares do TELA Bio's employee inducement grants cover?

TELA Bio approved restricted stock unit grants covering 108,550 common shares for four newly hired employees, with a grant date of November 4, 2026. The awards are part of their employment compensation.

When do TELA Bio's November 2026 inducement grants vest?

Awards covering 58,550 shares vest in equal annual installments over four years, while the award covering 50,000 shares vests fully on the first anniversary of November 4, 2026. Each recipient must remain in service through the applicable vesting date.