Arena Pharmaceuticals Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)
March 19 2021 - 8:30AM
Business Wire
Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today announced that
the Compensation Committee of its Board of Directors granted
inducement stock options, inducement performance restricted stock
units ("PRSUs"), and inducement restricted stock units ("RSUs") to
new employees. The inducement stock options, PRSUs, and RSUs each
have a grant date and vesting commencement date (if applicable) of
March 15, 2021, and were granted as inducements material to the new
employees entering employment with Arena in accordance with Nasdaq
Listing Rule 5635(c)(4). These grants included:
- options to purchase an aggregate of 40,000 shares of Arena's
common stock to Mike Paolucci, Executive Vice President of Human
Capital, approved by the Compensation Committee on February 15,
2021;
- PRSUs to Mr. Paolucci at an amount of 7,000 shares, approved by
the Compensation Committee on February 15, 2021;
- options to purchase an aggregate of 12,900 shares of Arena's
common stock to four new employees, approved by the Compensation
Committee on March 12, 2021; and
- 5,595 RSUs to four new employees, approved by the Compensation
Committee on March 12, 2021.
The inducement stock options are non-qualified stock options,
have a seven-year term, have an exercise price of $77.58 per share,
the closing price of Arena's common stock on the grant date, and
vest over four years, with 25% of the shares vesting on the
one-year anniversary of the vesting commencement date and the
remaining 75% of the shares vesting in substantially equal monthly
installments over the following 36 months, subject to the new
employee's continued service with Arena through the applicable
vesting dates. The PRSUs represent a contingent right to receive a
number of shares of Arena's common stock equal to up to 100% of the
number of target PRSUs granted, which shares shall vest, if at all,
upon the closing price of Arena's common stock reaching certain
thresholds during the performance period beginning on the grant
date and ending on February 29, 2024, and satisfaction of a
continuing service requirement. The RSUs vest over four years, with
25% of the shares vesting on the first designated quarterly vesting
date on or following the one-year anniversary of the vesting
commencement date and the remaining 75% of the shares vesting in 12
substantially equal quarterly installments occurring on the
following 12 quarterly vesting dates, subject to the new employee's
continued service with Arena through the applicable vesting dates.
The inducement stock options, PRSUs, and RSUs are subject to the
terms and conditions of Arena's Amended and Restated 2020 Long-Term
Incentive Plan.
About Arena Pharmaceuticals
ARENA Pharmaceuticals is a team with a singular purpose –
deliver our important medicines to patients.
In a rapidly changing global market, we work with a sense of
urgency every day to understand the needs of all our stakeholders;
identify bold, sometimes disruptive, ideas to get our medicines to
patients; and relentlessly execute until it’s done.
ARENA - Care More. Act Differently.
Forward-Looking Statements
Certain statements in this press release are forward-looking
statements that involve a number of risks and uncertainties. Such
forward-looking statements include statements about Arena's
purpose, work, understanding, ideas, and execution. For such
statements, Arena claims the protection of the Private Securities
Litigation Reform Act of 1995. Actual events or results may differ
materially from Arena's expectations. Factors that could cause
actual results to differ materially from the forward-looking
statements include those disclosed in Arena's filings with the
Securities and Exchange Commission. These forward-looking
statements represent Arena's judgment as of the time of this
release. Arena disclaims any intent or obligation to update these
forward-looking statements, other than as may be required under
applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20210319005082/en/
Patrick Malloy Arena Pharmaceuticals, Inc. Vice President,
Investor Relations & Corporate Communications
pmalloy@arenapharm.com 847.987.4878
Arena Pharmaceuticals (NASDAQ:ARNA)
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