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

The options carry a $8.91 exercise price and vest over time subject to each employee’s continued service.

Rhea-AI Summary

Xilio Therapeutics (XLO) granted employee stock options effective October 1, 2026, including an award to its newly appointed chief medical officer.

Two new employees received options to purchase 100,895 shares in aggregate; Chief Medical Officer Yariv Houvras received an option for 105,000 shares. The exercise price is $8.91 per share, matching the October 1 closing share price. Each option has a ten-year term. Vesting covers 25% on the first anniversary of the employee’s employment start, followed by 36 equal monthly installments for the remaining 75%, subject to continued service. The grants were employment inducements under the 2022 Inducement Stock Incentive Plan and Nasdaq Listing Rule 5635(c)(4).

Positive

• None.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.Options for 100,895 shares granted to two new employees create potential dilution at $8.91 per share.
• Minor point. Forward-looking: it has not happened yet and may not happen.Chief Medical Officer Yariv Houvras’s option for 105,000 shares creates potential dilution at $8.91 per share.

Key Figures

Options for two new employees: 100,895 shares Options for chief medical officer: 105,000 shares Exercise price: $8.91 per share +2 more

Options for two new employees

100,895 shares

Inducement grants

Options for chief medical officer

105,000 shares

Inducement grant

Exercise price

$8.91 per share

Equal to the October 1, 2026 closing price

Option term

10 years

Each stock option

Vesting schedule

25% on the first anniversary; remaining 75% in 36 equal monthly installments

Subject to continued service

Historical Context

1 past event · Latest: Sep 28

1 event

1. Sep 28

   Leadership change

   24h Move

   +0.0%

   Houvras was appointed chief medical officer before receiving an inducement option grant.

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

Key Terms

non-qualified stock options, nasdaq listing rule 5635(c)(4)

2 terms

non-qualified stock options financial

"granted non-qualified stock options to purchase an aggregate of 100,895 shares"

Non-qualified stock options are a type of employee benefit that gives individuals the right to buy company shares at a set price, usually lower than the market value, within a certain period. Unlike other options that may have special tax advantages, these options are taxed as income when exercised, which can affect how much money the employee or investor ultimately gains. They are important because they can influence company compensation strategies and impact the financial outcomes for employees and investors.

nasdaq listing rule 5635(c)(4) regulatory

"in accordance with Nasdaq Listing Rule 5635(c)(4)"

NASDAQ Listing Rule 5635(c)(4) is a rule that requires a company to get approval from its shareholders before selling a large amount of its shares, usually over 20%. This helps protect investors by making sure the company doesn't flood the market with new shares without their say, which could lower the stock's value.

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WALTHAM, Mass., Oct. 02, 2026 (GLOBE NEWSWIRE) -- Xilio Therapeutics, Inc. (Nasdaq: XLO), a clinical-stage biotechnology company discovering and developing masked immuno-oncology therapies for people living with cancer, today announced that, effective October 1, 2026, the company granted non-qualified stock options to purchase an aggregate of 100,895 shares of its common stock to two new employees under Xilio Therapeutics’ Third Amended and Restated 2022 Inducement Stock Incentive Plan (the 2022 Inducement Stock Incentive Plan). Additionally, the company granted a non-qualified stock option to purchase 105,000 shares of its common stock under the 2022 Inducement Stock Incentive Plan to the company’s newly appointed Chief Medical Officer, Yariv Houvras, M.D., Ph.D.

The stock options have an exercise price of $8.91 per share, which is equal to the closing price of the company’s common stock on October 1, 2026. 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 the applicable employee’s commencement of employment, and the remaining 75% of the shares underlying the stock option will vest in 36 equal monthly installments thereafter, subject to such employee’s 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 the 2022 Inducement Stock Incentive Plan, as well as the terms and conditions of the stock option agreements covering the grants and were made as an inducement material to the applicable employee 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 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 masking technology to advance a pipeline of novel, masked 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 Contact
Alex Lobo, Precision AQ
Alex.lobo@precisionaq.com

Media Contact
Josie Butler, 1AB
josie@1abmedia.com

FAQ

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

How many stock options did Xilio Therapeutics grant to its new employees and chief medical officer?

Xilio granted two new employees options to purchase 100,895 shares in aggregate and newly appointed Chief Medical Officer Yariv Houvras an option to purchase 105,000 shares. The grants were effective October 1, 2026, with an exercise price of $8.91 per share.

What is the vesting schedule for Xilio Therapeutics’ inducement stock options?

Each option vests 25% on the first anniversary of the applicable employee’s employment start, with the remaining 75% vesting in 36 equal monthly installments thereafter. Vesting requires continued service with Xilio or a subsidiary through each applicable vesting date. Each option has a ten-year term.