Zentalis Pharmaceuticals Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

The employee options vest over four years, with continued service required on each vesting date.

Rhea-AI Summary

Zentalis Pharmaceuticals (ZNTL) granted stock options covering 136,000 shares to four newly hired employees as employment inducements under its 2022 Inducement Plan.

The options have an exercise price of $1.85 per share, equal to the stock’s closing price on The Nasdaq Global Market on the grant date, November 2, 2026. They have a 10-year term and vest over four years: 25% on the first anniversary of the vesting commencement date, followed by the remaining 75% in equal monthly installments over three years. Vesting requires continued service on each vesting date. The grants were made under Nasdaq Listing Rule 5635(c)(4).

Positive

• None.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.136,000 stock options granted to four new employees at $1.85 per share create potential dilution upon exercise.

Key Figures

Options granted: 136,000 shares Exercise price: $1.85 per share Option term: 10 years +1 more

Options granted

136,000 shares

Aggregate grant to four newly hired employees

Exercise price

$1.85 per share

Equal to the closing price on the grant date

Option term

10 years

Stock options

Vesting schedule

Four years; 25% at the first anniversary, remaining 75% in equal monthly installments

Subject to continued employee service

Historical Context

2 past events · Latest: Oct 01

2 events

1. Oct 01

   Inducement grants

   24h Move

   -3.3%

   Granted options to three new hires under the 2022 plan, with a 10-year term and four-year vesting.

2. Sep 01

   Inducement grants

   24h Move

   +1.6%

   Granted options to four new hires under the 2022 plan, with a 10-year term and four-year vesting.

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, wee1 inhibitor, nasdaq listing rule 5635(c)(4)

3 terms

non-qualified stock options financial

"granted non-qualified stock options to purchase an aggregate of 136,000 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.

wee1 inhibitor medical

"investigational first-in-class WEE1 inhibitor azenosertib"

A Wee1 inhibitor is a drug that blocks the Wee1 protein, which normally acts like a safety brake that pauses damaged cells before they divide. By removing that brake, cancer cells with DNA damage are forced into division and often die, making the approach useful for targeting tumors. Investors track Wee1 inhibitors because their clinical trial success, safety profile and use with other therapies can greatly affect a biotechnology company's value.

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.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

SAN DIEGO, Nov. 02, 2026 (GLOBE NEWSWIRE) -- Zentalis^® Pharmaceuticals, Inc. (Nasdaq: ZNTL), a clinical oncology innovator advancing late-stage development of investigational first-in-class WEE1 inhibitor azenosertib as a biomarker-driven treatment approach for ovarian cancer, today announced that on November 2, 2026, the Compensation Committee of Zentalis’ Board of Directors granted non-qualified stock options to purchase an aggregate of 136,000 shares of the Company’s common stock to four (4) newly hired employees. The stock options were granted under the Zentalis Pharmaceuticals, Inc. 2022 Employment Inducement Incentive Award Plan (2022 Inducement Plan) as an inducement material to each such individual’s entering into employment with Zentalis in accordance with Nasdaq Listing Rule 5635(c)(4).

The 2022 Inducement Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of Zentalis, or following a bona fide period of non-employment, as an inducement material to each such individual’s entering into employment with Zentalis, pursuant to Nasdaq Listing Rule 5635(c)(4).

The stock options have an exercise price of $1.85 per share, which is equal to the closing price of Zentalis’ common stock on The Nasdaq Global Market on the date of grant. The stock options have a 10-year term and will vest over four years, with 25% of the options vesting on the first anniversary of the vesting commencement date and the remaining 75% of the options vesting in equal monthly installments over the three years thereafter.

Vesting of the stock options is subject to the employee’s continued service to Zentalis on each vesting date.

About Zentalis Pharmaceuticals
Zentalis is a clinical oncology innovator developing a treatment approach for ovarian cancer and multiple tumor types. Leveraging therapeutics development and biomarker expertise, Zentalis is advancing monotherapy and combination studies of its investigational first-in-class WEE1 inhibitor, azenosertib. Focused on translating WEE1 science into clinical practice, we aim to equip physicians with a targeted, non-chemo, orally available medicine that enhances treatment experience, choice, and outcomes. Our mission: to unburden cancer patients with more convenience and care.​

For more information, please visit www.zentalis.com. Follow Zentalis on LinkedIn at www.linkedin.com/company/zentalis-pharmaceuticals.

ZENTALIS^® and its associated logo are trademarks of Zentalis and/or its affiliates. All website addresses and other links in this press release are for information only and are not intended to be an active link or to incorporate any website or other information into this press release.

Contact: 
Aron Feingold
VP, Investor Relations & Corporate Communications
ir@zentalis.com

FAQ

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

What are the terms of Zentalis Pharmaceuticals’ new employee stock options?

The options cover 136,000 shares at an exercise price of $1.85 per share and have a 10-year term. They vest over four years, with 25% vesting on the first anniversary of the vesting commencement date and the remaining 75% monthly over the following three years, subject to continued service.