Xilio Therapeutics Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Xilio Therapeutics (XLO) has granted stock options to five new employees as part of their employment inducement package. The grants, effective June 1, 2025, include options to purchase 181,300 shares of common stock at an exercise price of $1.07 per share, matching the company's closing price on May 30, 2025. The options have a ten-year term with a vesting schedule of 25% after the first year and the remaining 75% vesting monthly over three years. These grants were made under Xilio's 2022 Inducement Stock Incentive Plan and comply with Nasdaq Listing Rule 5635(c)(4).

Positive

• Company is expanding its workforce with five new hires
• Stock options align employee interests with shareholders through equity compensation

Negative

• Low stock price of $1.07 per share indicates challenging market conditions
• Potential future dilution from 181,300 shares of options

WALTHAM, Mass., June 03, 2025 (GLOBE NEWSWIRE) -- Xilio Therapeutics, Inc. (Nasdaq: XLO), a clinical-stage biotechnology company discovering and developing tumor-activated immuno-oncology therapies for people living with cancer, today announced that, effective June 1, 2025, the company granted non-qualified stock options to purchase 181,300 shares of its common stock to five new employees under Xilio Therapeutics’ 2022 Inducement Stock Incentive Plan.

The stock options have an exercise price of $1.07 per share, which is equal to the closing price of the company’s common stock on May 30, 2025. Each stock option has a ten-year term and will vest as to 25% of the shares underlying the stock option on the first anniversary following commencement of employment, and the remaining 75% of the shares underlying the stock option will vest in 36 equal monthly installments thereafter, subject to continued service with the company or any of its subsidiaries through each applicable vesting date.

The stock options are subject to the terms and conditions of Xilio Therapeutics’ 2022 Inducement Stock Incentive Plan, as well as the terms and conditions of the stock option agreement covering the grant and were made as an inducement material to the individual entering into employment with the company in accordance with Nasdaq Listing Rule 5635(c)(4).

About Xilio Therapeutics
Xilio Therapeutics is a clinical-stage biotechnology company discovering and developing tumor-activated, or masked, immuno-oncology (I-O) therapies with the goal of significantly improving outcomes for people living with cancer without the systemic side effects of current I-O treatments. The company is leveraging its proprietary platform to advance a pipeline of novel, tumor-activated I-O molecules that are designed to optimize the therapeutic index by localizing anti-tumor activity within the tumor microenvironment. Learn more by visiting www.xiliotx.com and follow us on LinkedIn (Xilio Therapeutics, Inc.).

Investor and Media Contact: 
Scott Young
Vice President, Investor Relations and Corporate Communications
investors@xiliotx.com

FAQ

What stock options did Xilio Therapeutics (XLO) grant to new employees in June 2025?

Xilio granted options to purchase 181,300 shares at $1.07 per share to five new employees, with a ten-year term and four-year vesting schedule.

What is the vesting schedule for XLO's June 2025 employee stock options?

The options vest 25% after one year, with the remaining 75% vesting in 36 equal monthly installments over the following three years.

How does Xilio's 2022 Inducement Stock Incentive Plan work?

The plan allows Xilio to grant stock options to new employees as employment inducements, complying with Nasdaq Rule 5635(c)(4).

What was Xilio Therapeutics' stock price when the options were granted?

The stock price was $1.07 per share, based on the closing price on May 30, 2025.