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

Rhea-AI Summary

Xilio Therapeutics (Nasdaq: XLO) granted a non-qualified stock option to a newly hired employee effective May 1, 2026, under its 2022 Inducement Stock Incentive Plan.

The option covers 1,982 shares at an exercise price of $8.32 per share (closing price May 1, 2026), has a ten-year term, and vests 25% after one year then monthly over 36 months, subject to continued service and plan terms.

News Market Reaction – XLO

-0.90%

-0.90% Session close to close

In the May 8 session, XLO declined 0.90%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details a routine inducement grant of 1,982 non-qualified stock options at an exer...

Analysis

This announcement details a routine inducement grant of 1,982 non-qualified stock options at an exercise price of $8.32, with a standard 10-year term and staggered vesting. It follows earlier equity grants and board-related compensation actions disclosed in recent filings. Investors tracking Xilio may focus more on pipeline milestones, collaboration revenues, and cash runway disclosures, using these governance and compensation updates as background on how the company attracts and retains key talent.

Key Figures

Inducement options granted: 1,982 shares Exercise price: $8.32 per share Option term: 10 years +2 more

5 metrics

Inducement options granted 1,982 shares Non-qualified stock options to one new employee effective May 1, 2026

Exercise price $8.32 per share Equal to closing price of common stock on May 1, 2026

Option term 10 years Ten-year term for the inducement stock options

Initial vesting tranche 25% Vests on first anniversary of employment commencement

Remaining vesting 75% over 36 months Vests in 36 equal monthly installments thereafter

Historical Context

5 past events · Latest: Apr 17 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 17	Preclinical data update	Positive	-1.4%	New preclinical data for XTX601 CLDN18.2 program presented at AACR.
Apr 16	Board change	Positive	-0.6%	Appointment of experienced director Cheryl R. Blanchard to board.
Apr 03	Inducement option grant	Neutral	-0.6%	Inducement stock options to two new employees under 2022 plan.
Mar 23	Earnings and pipeline	Positive	+0.0%	Pipeline updates and Q4/2025 results with cash runway through 2027.
Mar 17	Conference presentation	Positive	+2.3%	Announcement of upcoming CLDN18.2 preclinical poster at AACR.

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

Pattern Detected

Recent news, including prior inducement grants and scientific updates, often saw flat to slightly negative next-day reactions, suggesting limited trading impact from routine corporate or pipeline communications.

Recent Company History

Over the last few months, Xilio reported a 1-for-14 reverse split, pipeline progress, 2025 results, and multiple CLDN18.2 data updates. Routine items like inducement option grants and board changes (e.g., events on Apr 3 and Apr 16, 2026) saw modest or negative price reactions within ±2.3%. Today’s small inducement grant under Nasdaq rules fits that pattern of administrative equity actions amid a broader focus on masked immuno-oncology development and financial runway through 2027.

Key Terms

non-qualified stock options, exercise price, Nasdaq Listing Rule 5635(c)(4)

3 terms

non-qualified stock options financial

"the company granted a non-qualified stock options to purchase 1,982 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.

exercise price financial

"The stock options have an exercise price of $8.32 per share"

The exercise price is the fixed amount at which you can buy or sell an asset, like a stock, when using an options contract. It matters because it helps determine whether exercising the option will be profitable or not, depending on the current market price. Think of it as the set price you agree on today to buy or sell later.

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.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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WALTHAM, Mass., May 07, 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 May 1, 2026, the company granted a non-qualified stock options to purchase 1,982 shares of its common stock to one new employee under Xilio Therapeutics’ 2022 Inducement Stock Incentive Plan.

The stock options have an exercise price of $8.32 per share, which is equal to the closing price of the company’s common stock on May 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 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 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

What did Xilio Therapeutics (XLO) announce about inducement stock options on May 7, 2026?

They granted a non-qualified option for 1,982 shares to a new employee. According to Xilio Therapeutics, the option has a $8.32 exercise price, a ten-year term, and a standard vesting schedule tied to continued service.

What is the exercise price and term for the Xilio (XLO) inducement option granted May 1, 2026?

The exercise price is $8.32 per share and the option term is ten years. According to Xilio Therapeutics, the price equals the May 1, 2026 closing price and the option follows the company’s plan terms.

How does the vesting schedule work for the XLO inducement stock option granted May 1, 2026?

Vesting is 25% after one year, then the remaining 75% vests in 36 equal monthly installments. According to Xilio Therapeutics, vesting is subject to continued service with the company or its subsidiaries.

Does the Xilio inducement grant on May 1, 2026 create immediate dilution for XLO shareholders?

The grant covers 1,982 shares, which creates potential future dilution if exercised. According to Xilio Therapeutics, the options are subject to plan terms and will only dilute if exercised under the company’s equity plan.