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

Rhea-AI Summary

Arena Pharmaceuticals (NASDAQ: ARNA) announced the granting of inducement restricted stock units (RSUs) to new employees, effective January 15, 2022. The Compensation Committee approved the issuance of 15,111 RSUs to Malcolm Crooks, Senior VP, and 20,218 RSUs to 21 new employees, as incentives for employment. The RSUs will vest over four years, with 25% vesting on the one-year anniversary, followed by quarterly vesting. This grant aligns with Nasdaq Listing Rule 5635(c)(4) and is governed by Arena's Long-Term Incentive Plan.

Positive

• Inducement RSUs granted to 22 new employees, which could enhance talent attraction.
• RSUs vesting structure over four years encourages employee retention.

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 restricted stock units ("RSUs") to new employees. The inducement RSUs have a grant date and vesting commencement date of January 15, 2022 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:

• RSUs to Malcolm Crooks, Senior Vice President, Head of International, at an amount of 15,111 shares, approved by the Compensation Committee on January 11, 2022; and
• 20,218 RSUs to 21 new employees, approved by the Compensation Committee on January 11, 2022.

The 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, except in the case of a qualifying termination following a change in control. The 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/20220118006011/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 are the details of Arena Pharmaceuticals' recent RSU grants on January 15, 2022?

Arena Pharmaceuticals granted inducement RSUs to new employees on January 15, 2022, including 15,111 RSUs to Malcolm Crooks and 20,218 RSUs to 21 new employees.

How do the RSUs granted by Arena Pharmaceuticals vest?

The RSUs vest over four years, with 25% vesting on the first anniversary and the remaining 75% vesting in equal quarterly installments.

What is the significance of the RSUs granted to new employees at Arena Pharmaceuticals?

The RSUs are intended as incentives to attract and retain talent, aligning with Nasdaq Listing Rule 5635(c)(4).

Who approved the RSU grants at Arena Pharmaceuticals?

The RSU grants were approved by the Compensation Committee on January 11, 2022.

What is the ticker symbol for Arena Pharmaceuticals?

The ticker symbol for Arena Pharmaceuticals is ARNA.