Arena Pharmaceuticals Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Arena Pharmaceuticals (NASDAQ: ARNA) announced the grant of inducement stock options and restricted stock units (RSUs) to new employees. The Compensation Committee approved these grants on October 5, 2021, with a grant date of October 15, 2021. Key grants include options for 36,000 shares and 7,000 RSUs to Chief Scientific Officer Lamine Mbow, and options for 14,500 shares and 24,500 RSUs to HR Senior VP Lucas Vitale. The inducement stock options have a seven-year term, with an exercise price of $62.89 per share, vesting over four years.

Positive

• Inducement stock options and RSUs granted to attract new talent.
• Stock options and RSUs include notable grants to senior executives.

Negative

• None.

PARK CITY, Utah--(BUSINESS WIRE)-- Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today announced that the Compensation Committee of its Board of Directors granted inducement stock options and inducement restricted stock units ("RSUs") to new employees. The inducement stock options and RSUs were approved by the Compensation Committee on October 5, 2021 and each have a grant date and vesting commencement date (if applicable) of October 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 36,000 shares of Arena's common stock to Lamine Mbow, Senior Vice President and Chief Scientific Officer;
• RSUs to Mr. Mbow at an amount of 7,000 shares;
• options to purchase an aggregate of 14,500 shares of Arena's common stock to Lucas Vitale, Senior Vice President, Human Resources;
• RSUs to Mr. Vitale at an amount of 24,500 shares;
• options to purchase an aggregate of 52,053 shares of Arena's common stock to 19 new employees; and
• 22,600 RSUs to 19 new employees.

The inducement stock options are non-qualified stock options, have a seven-year term, have an exercise price of $62.89 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. Ten thousand inducement RSUs granted to Mr. Vitale vest in full on the earlier of the one-year anniversary of the grant date or date of involuntary separation not for cause. All other inducement 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 and inducement RSUs are subject to the terms and conditions of Arena's Amended and Restated 2021 Long-Term Incentive Plan.

About Arena Pharmaceuticals

ARENA Pharmaceuticals is a team with a singular purpose – deliver 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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211021005983/en/

Corporate Contacts:

Patrick Malloy

Arena Pharmaceuticals, Inc.

Vice President, Investor Relations & Corporate Communications

pmalloy@arenapharm.com

847.987.4878

Source: Arena Pharmaceuticals, Inc.

FAQ

What stock options were granted to new employees at Arena Pharmaceuticals?

Arena Pharmaceuticals granted options to purchase 36,000 shares to Lamine Mbow and options for 14,500 shares to Lucas Vitale, along with additional grants to 19 new employees.

What is the vesting schedule for the stock options granted by Arena Pharmaceuticals?

Inducement stock options vest over four years, with 25% vesting on the one-year anniversary and the remaining 75% vesting monthly over the following 36 months.

What is the exercise price for the stock options granted at Arena Pharmaceuticals?

The exercise price for the inducement stock options is $62.89 per share, which is the closing price of Arena's common stock on the grant date.

When were the stock options and RSUs granted by Arena Pharmaceuticals?

The stock options and RSUs were granted on October 15, 2021, following approval by the Compensation Committee on October 5, 2021.