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

Rhea-AI Summary

TELA Bio (NASDAQ: TELA) announced inducement equity awards approved by the Compensation Committee with a Grant Date of November 10, 2025 under Nasdaq Rule 5635(c)(4).

The awards consist of 30,200 restricted stock units granted to seventeen newly hired employees and a 25,000-share stock option granted to one employee. The option exercise price equals $1.19 per share (closing price on the Grant Date), the option term is 10 years, and vesting occurs over four years (25% at the first anniversary, then monthly over 36 months). The RSUs vest in equal annual installments over four years and all awards require continued service through vesting dates.

MALVERN, Pa., Nov. 17, 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 (i) restricted stock units covering 30,200 shares of its common stock to seventeen newly-hired employees and (ii) an option to purchase 25,000 shares of its common stock to one employee, with a grant date of November 10, 2025 (the "Grant Date"). The equity awards 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 stock options have an exercise price equal to $1.19 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 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 equity awards did TELA Bio (NASDAQ: TELA) grant on November 10, 2025?

TELA Bio granted 30,200 restricted stock units to 17 new hires and a 25,000-share stock option to one employee on November 10, 2025.

What is the exercise price and term of the TELA Bio stock option granted on November 10, 2025?

The option has an exercise price of $1.19 per share and a 10-year term.

How do the TELA Bio stock option vesting terms work for the November 10, 2025 grant?

The option vests over 4 years: 25% at the first anniversary, then the remaining 75% in equal monthly installments over the next 36 months.

How do the restricted stock units granted by TELA Bio on November 10, 2025 vest?

The 30,200 RSUs vest in equal annual installments over 4 years subject to continued service.

Why were these equity awards granted under Nasdaq Rule 5635(c)(4) for TELA Bio?

The awards were granted as inducement grants under Nasdaq Rule 5635(c)(4) as a component of each individual's employment compensation to induce acceptance of employment.

Do the TELA Bio inducement awards require continued employment to vest?

Yes, both the RSUs and the stock option are subject to each individual's continued service through the applicable vesting dates.