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Zhongchao Inc . (NASDAQ:ZCMD) announced that its board of directors approved the company’s 2025 Equity Incentive Plan on August 4. The plan became effective the same day, according to a press release statement based on a recent SEC filing.
The 2025 Equity Incentive Plan allows the company to grant options, share appreciation rights, restricted shares, restricted share units, performance units, and performance shares to employees, directors, and consultants. The plan authorizes up to 10,000,000 ordinary shares to be issued initially. Beginning with the first trading day in January 2026, the number of shares available under the plan will automatically increase each year by an amount equal to 2.0% of the company’s total issued and outstanding ordinary shares as of the last trading day of the previous year. The total maximum number of shares that may be issued under the plan is capped at 50,000,000.
Zhongchao Inc., as a foreign private issuer, follows corporate governance practices of its home country, the Cayman Islands, instead of certain NASDAQ Stock Market rules. The company elected to be exempt from NASDAQ Rules 5635, which generally require shareholder approval for certain types of securities issuances, including equity-based compensation. According to the filing, the company’s Cayman Islands legal counsel certified that under Cayman Islands law and the company’s governing documents, it is not prohibited from issuing securities without prior shareholder approval in these cases.
This information is based on a press release statement included in a recent SEC filing.
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