Cabaletta Bio Inc. has announced a repricing of stock options for current employees, directors, and key consultants, effective May 19, 2025. The repricing affects options granted under the company's 2018 and 2019 Stock Option Plans, specifically targeting those with exercise prices exceeding 1.5 times the company's common stock closing price on the Nasdaq Global Select Market as of the effective date. The new exercise price for eligible options is set at $1.92. To benefit from the reduced exercise price, participants must remain with the company through a defined retention period, which concludes either on May 19, 2026, upon a sale event, or due to the participant's death or disability. The board approved this measure after careful deliberation, aiming to address the fact that approximately 75% of stock options were previously "underwater."
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