Adicet Bio Grants Inducement Stock Options to New Hires Under Nasdaq Listing Rule 5635(c)(4)

Adicet Bio granted inducement stock options to two new hires covering 84,000 shares at $0.72 per share, vesting over four years contingent on continued employment. The awards were made outside the company's approved equity incentive plans under the 2022 Inducement Plan, as authorized by the board of directors' compensation committee.

Adicet Bio, Inc. (ACET) has granted inducement stock options to two new hires, covering a total of 84,000 shares at an exercise price of $0.72 per share. The options vest over a four-year period, contingent on continued employment with the company. This move is part of Adicet Bio's strategy to attract specialized expertise and accelerate its autoimmune disease programs, ADI-001 and ADI-002 [1].

The inducement grants were made outside of Adicet Bio's approved equity incentive plans, as authorized by the board of directors' compensation committee. The 2022 Inducement Plan, which was adopted by the board and subsequently amended in January 2023, outlines the structure and terms of these grants [2].

The vesting schedule for the options is as follows: 25% of the shares will vest on the one-year anniversary of each recipient's start date, with the remaining 75% vesting in 36 equal monthly installments, ensuring full vesting by the fourth anniversary of employment [3].

The grants are a significant addition to Adicet Bio's financial landscape. As of 2022, the company has seen a 121% increase in diluted shares outstanding, raising concerns about the cumulative impact on ownership structure and stock price [1]. However, Adicet Bio believes that the investment in talent will drive clinical progress and ultimately justify the dilution.

The success of these inducement grants hinges on the new hires' contributions to meaningful clinical advancements. Adicet Bio has recently dosed the first systemic sclerosis (SSc) patient in its Phase 1 trial for ADI-001, with preliminary data expected in late 2025 [3]. The company's financial health, including a net loss of $31.2 million in Q2 2025, also underscores the high stakes involved in this strategy [4].

Investors should closely monitor Adicet Bio's clinical and financial outcomes to assess the long-term strategic value of these inducement grants. The company's stock price has shown volatility, with a 2.78% increase in after-hours trading following the announcement of the grants [2].

References:
[1] https://www.ainvest.com/news/strategic-talent-acquisition-equity-incentives-biotech-deep-dive-adicet-bio-inducement-grants-2508/
[2] https://www.ainvest.com/news/adicet-bio-shares-rise-2-78-hours-reporting-inducement-grants-nasdaq-listing-rule-2508/
[3] https://www.nasdaq.com/press-release/adicet-bio-reports-inducement-grants-under-nasdaq-listing-rule-5635c4-2025-08-29
[4] https://investor.adicetbio.com/news-releases/news-release-details/adicet-bio-reports-second-quarter-2025-financial-results-and