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

Rhea-AI Summary

Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) announced the granting of inducement stock options and restricted stock units (RSUs) to five new employees on January 15, 2021. The total includes 16,950 stock options and 3,470 RSUs, with an exercise price of $80.50 per share. The options have a seven-year term and vest over four years, while the RSUs vest over the same period with quarterly installments. This grant aligns with Nasdaq Listing Rule 5635(c)(4), aimed at enticing new talent to the company.

Positive

• Inducement stock options aim to attract new talent to Arena.
• The stock options and RSUs align with Nasdaq regulations, enhancing corporate governance.

Negative

• None.

Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today announced that on January 15, 2021, the Compensation Committee of its Board of Directors granted to five new employees inducement stock options to purchase an aggregate of 16,950 shares of its common stock and 3,470 inducement restricted stock units ("RSUs"). The inducement stock options and RSUs have a grant date and vesting commencement date of January 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).

The inducement stock options are non-qualified stock options, have a seven-year term, have an exercise price of $80.50 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 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 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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FAQ

What was announced by Arena Pharmaceuticals on January 15, 2021?

Arena Pharmaceuticals announced the granting of inducement stock options and restricted stock units to five new employees.

How many stock options were granted by Arena Pharmaceuticals?

Arena Pharmaceuticals granted a total of 16,950 inducement stock options.

What is the exercise price of the stock options granted by Arena?

The exercise price of the stock options is $80.50 per share.

What is the vesting period for the stock options at Arena Pharmaceuticals?

The stock options vest over four years, with 25% vesting after one year and the remaining 75% vesting monthly.

What is the purpose of granting inducement stock options at Arena Pharmaceuticals?

The purpose is to attract new employees to the company as part of its talent acquisition strategy.