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

Xilio Therapeutics (Nasdaq:XLO) granted non-qualified stock options to three new employees effective July 1, 2026, under its 2022 Inducement Stock Incentive Plan.

Rhea-AI Summary

Xilio Therapeutics (Nasdaq:XLO) granted non-qualified stock options to three new employees effective July 1, 2026, under its 2022 Inducement Stock Incentive Plan.

The grants cover 107,060 shares at an exercise price of $9.22 per share, with a ten-year term and time-based vesting, as an inducement under Nasdaq Listing Rule 5635(c)(4).

Argus Jul 7 session 2 alerts

-1.38% close to close 4.5x rel. volume Open Argus

Details

News Market Reaction – XLO

-3.3% Trough Tracked

$60.16M Market Cap

In the Jul 7 session, XLO declined 1.38%, reflecting a mild negative market reaction. Argus tracked a trough of -3.3% from its starting point during tracking. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. Trading volume was very high at 4.5x the daily average, suggesting heavy selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The company issued non-qualified stock options for 107,060 shares at an exercise price matching the ...

Analysis

The company issued non-qualified stock options for 107,060 shares at an exercise price matching the market, under its inducement plan. These awards are routine hiring tools; investors may watch how frequently option and shelf capacities are tapped over time.

Key Figures

Inducement option grant size: 107,060 shares Exercise price: $9.22 per share Option term: 10 years +5 more

Inducement option grant size

107,060 shares

Non-qualified stock options granted to three new employees

Exercise price

$9.22 per share

Equal to Xilio’s July 1, 2026 closing price

Option term

10 years

Ten-year term for each stock option granted

Initial vesting tranche

25% of shares

Vests on first anniversary of employment commencement

Remaining vesting tranche

75% of shares

Vests in subsequent monthly installments

Monthly vesting schedule

36 monthly installments

Remainder vests over three years after first anniversary

New employees

3 employees

Recipients of inducement stock option grants

Grant effective date

July 1, 2026

Effective date of inducement stock option grants

Historical Context

5 past events · Latest: Jun 29

5 events

1. Jun 29

   Leadership appointment

   24h Move

   +2.4%

   Appointment of a new chief legal officer with biopharma experience.

2. May 12

   Earnings and pipeline update

   24h Move

   +0.0%

   First quarter 2026 financial results and masked IO pipeline progress.

3. May 7

   Inducement option grant

   24h Move

   -0.9%

   Prior non-qualified stock option grant under inducement equity plan.

4. Apr 17

   Preclinical data update

   24h Move

   -1.4%

   New preclinical data for XTX601 presented at AACR annual meeting.

5. Apr 16

   Board appointment

   24h Move

   -0.6%

   Addition of a new director and related board composition changes.

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, inducement stock incentive plan, nasdaq listing rule 5635(c)(4)

3 terms

non-qualified stock options financial

"the company granted non-qualified stock options to purchase 107,060 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.

inducement stock incentive plan financial

"under Xilio Therapeutics’ 2022 Inducement Stock Incentive Plan"

An inducement stock incentive plan is a program that gives newly hired employees or executives shares or stock-based awards as a reward for joining a company and to encourage them to stay and perform. For investors, it matters because these grants can dilute existing shareholders, increase reported compensation costs, and signal how a company is investing in talent—similar to a signing bonus mixed with a stake in the business.

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., July 06, 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 July 1, 2026, the company granted non-qualified stock options to purchase 107,060 shares of its common stock to three new employees under Xilio Therapeutics’ 2022 Inducement Stock Incentive Plan.

The stock options have an exercise price of $9.22 per share, which is equal to the closing price of the company’s common stock on July 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

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

What stock options did Xilio Therapeutics (XLO) grant on July 1, 2026?

Xilio Therapeutics granted non-qualified stock options for 107,060 shares of common stock to three new employees. According to Xilio Therapeutics, these options were issued under the 2022 Inducement Stock Incentive Plan as employment inducements.

What is the exercise price of the new Xilio Therapeutics (XLO) inducement stock options?

The exercise price is $9.22 per share, equal to the closing price on July 1, 2026. According to Xilio Therapeutics, this pricing aligns the options’ value with the market price at the grant date.

How do the Xilio Therapeutics (XLO) inducement options vest for new employees?

The options vest 25% on the first anniversary of employment, then 75% in 36 equal monthly installments. According to Xilio Therapeutics, vesting requires continued service with the company or its subsidiaries through each vesting date.

What is the term of the Xilio Therapeutics (XLO) inducement stock options?

Each non-qualified stock option has a ten-year term from the grant date. According to Xilio Therapeutics, the options remain exercisable during this period, subject to vesting and standard plan and agreement conditions.

Why were these Xilio Therapeutics (XLO) stock options granted under Nasdaq Rule 5635(c)(4)?

The options were granted as an inducement material to new employees entering employment. According to Xilio Therapeutics, this structure complies with Nasdaq Listing Rule 5635(c)(4), which allows equity awards outside shareholder-approved plans for new hires.

Under which plan were the July 2026 Xilio Therapeutics (XLO) inducement options issued?

The options were issued under the 2022 Inducement Stock Incentive Plan. According to Xilio Therapeutics, the grants are also governed by individual stock option agreements detailing specific terms and conditions.