What is the Listing of Additional shares notification requirement for equity awards issued as an inducement material to a person accepting employment with the company?
NASDAQ recognizes that when an issuer makes an equity grant to induce an individual to accept employment, as permitted by the exception contained in Listing Rule 5635(c)(4), it may not be practical to provide the advance notice otherwise required. Therefore, when an issuer relies on that exception to make such an inducement grant without shareholder approval, it is sufficient to notify NASDAQ about the grant and the use of the exception no later than the earlier of: (1) five calendar days after entering into the agreement to issue the securities; or (2) the date of the public announcement of the award required by Rule 5635(c)(4).
Related Questions
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