Xenon Pharmaceuticals Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Xenon Pharmaceuticals (Nasdaq: XENE) granted equity inducement awards to five new non-officer employees under Nasdaq Listing Rule 5635(c)(4), effective August 27, 2026.

Rhea-AI Summary

Xenon Pharmaceuticals (Nasdaq: XENE) granted equity inducement awards to five new non-officer employees under Nasdaq Listing Rule 5635(c)(4), effective August 27, 2026. The awards consist of an aggregate of 13,450 share options and 7,850 restricted share units (RSUs), approved by the board’s Compensation Committee.

The options have a $61.93 exercise price, equal to the August 27, 2026 closing price, a 10-year term, and vest over four years (25% at one year, then monthly thereafter). RSUs vest 25% annually over four years. All grants are made under the Amended and Restated 2025 Inducement Equity Incentive Plan.

News Explained

The grants are effective equity awards rather than a cash payment: Xenon has committed options and RSUs tied to common shares, with vesting staged over four years and subject to continued service, so any ownership impact is conditional rather than immediate.

News Market Reaction – XENE

+0.38%

+0.38% Session close to close

In the Aug 31 session, XENE gained 0.38%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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VANCOUVER, BC and BOSTON, MA, Aug. 28, 2026 (GLOBE NEWSWIRE) -- Xenon Pharmaceuticals Inc. (Nasdaq: XENE), a neuroscience-focused biopharmaceutical company dedicated to drug discovery, clinical development, and commercialization of life-changing therapeutics for patients in need, today announced equity inducement grants to five new non-officer employees consisting of an aggregate of 13,450 share options and 7,850 restricted share units (RSUs). All of the foregoing share options and RSUs were approved by the Compensation Committee of the Company’s Board of Directors with an effective date of August 27, 2026 and were granted as inducements material to the employees entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).

The share options have an exercise price of $61.93 per common share, which is equal to the closing price per share of Xenon’s common shares on the grant date of August 27, 2026. The share option grants vest over four years, with 25% vesting on the one-year anniversary of the respective employee’s start date and 1/36th of the remaining options vesting monthly thereafter on the last day of each month, subject to such option recipient’s continued service relationship with the Company. Each option has a 10-year term and is subject to the terms and conditions of the share option agreement and the terms of the Company’s Amended and Restated 2025 Inducement Equity Incentive Plan. The RSUs will vest as to 25% of the underlying shares on each of the first four anniversaries of the grant date of August 27, 2026, subject to such employee’s continued service relationship with the Company. Each RSU grant is subject to the terms and conditions of the restricted share unit award agreement and the terms of the Company’s Amended and Restated 2025 Inducement Equity Incentive Plan.

About Xenon Pharmaceuticals Inc.
Xenon Pharmaceuticals (Nasdaq: XENE) is a neuroscience-focused biopharmaceutical company dedicated to drug discovery, clinical development, and commercialization of life-changing therapeutics for patients in need. Xenon’s lead molecule, azetukalner, is a novel, potent K_V7 potassium channel opener in late-stage clinical development for the treatment of epilepsy, major depressive disorder and bipolar depression. Xenon is also advancing an early-stage portfolio of multiple promising potassium and sodium channel modulators, including K_V7 and Na_V1.7 programs in Phase 1 development for the potential treatment of pain. Xenon has offices in Vancouver, British Columbia, and Boston, Massachusetts. For more information, visit www.xenon-pharma.com and follow us on LinkedIn and X.

Xenon and the Xenon logo are registered trademarks or trademarks of Xenon Pharmaceuticals Inc. in the US, Canada, and elsewhere. All other trademarks belong to their respective owner.

Contacts:
For Investors:
Tucker Kelly
Chief Financial Officer
investors@xenon-pharma.com

For Media:
Colleen Alabiso
Senior Vice President, Corporate Affairs
media@xenon-pharma.com

FAQ

What inducement equity awards did Xenon Pharmaceuticals (XENE) grant on August 27, 2026?

Xenon Pharmaceuticals granted 13,450 share options and 7,850 RSUs to five new non-officer employees. According to Xenon Pharmaceuticals, these awards were approved as inducement grants under Nasdaq Listing Rule 5635(c)(4) and are issued pursuant to its Amended and Restated 2025 Inducement Equity Incentive Plan.

What is the exercise price and term of the new Xenon Pharmaceuticals (XENE) stock options?

The new Xenon Pharmaceuticals stock options have an exercise price of $61.93 per common share and a 10-year term. According to Xenon Pharmaceuticals, $61.93 equals the closing share price on August 27, 2026, the grant date for these inducement awards to new employees.

How do Xenon Pharmaceuticals (XENE) inducement stock options vest for new employees?

Xenon Pharmaceuticals’ inducement stock options vest over four years, with 25% vesting on the one-year anniversary of each employee’s start date. According to Xenon Pharmaceuticals, the remaining 75% vests in 36 equal monthly installments, subject to continued service with the company throughout the vesting period.

What is the vesting schedule for Xenon Pharmaceuticals (XENE) restricted share units granted in August 2026?

The RSUs granted by Xenon Pharmaceuticals vest in four equal annual installments of 25% each. According to Xenon Pharmaceuticals, vesting occurs on each of the first four anniversaries of the August 27, 2026 grant date, contingent on the employee’s continued service with the company.

Under which plan were the August 2026 Xenon Pharmaceuticals (XENE) inducement equity awards granted?

The August 2026 inducement equity awards were granted under Xenon Pharmaceuticals’ Amended and Restated 2025 Inducement Equity Incentive Plan. According to Xenon Pharmaceuticals, both the stock option and RSU awards are subject to this plan and their respective grant agreements’ terms and conditions.

Why did Xenon Pharmaceuticals (XENE) use Nasdaq Listing Rule 5635(c)(4) for these equity grants?

Xenon Pharmaceuticals used Nasdaq Listing Rule 5635(c)(4) to classify these awards as inducements material to employment. According to Xenon Pharmaceuticals, the option and RSU grants were offered to attract new non-officer employees and were approved by the board’s Compensation Committee accordingly.