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

Rhea-AI Summary

Arena Pharmaceuticals (Nasdaq: ARNA) announced on October 15, 2020, that its Compensation Committee granted inducement stock options and restricted stock units (RSUs) to seven new employees. In total, 66,475 stock options and 11,760 RSUs were granted, with a non-qualified option exercise price set at $81.57 per share. The options will vest over four years, while RSUs will also follow a four-year vesting schedule. This move aims to attract talent and aligns with Nasdaq Listing Rule 5635(c)(4).

Positive

• Inducement stock options and RSUs granted to attract new talent.
• Stock options exercise price aligned with market value ($81.57).
• Structured vesting over four years incentivizes employee retention.

Negative

• None.

SAN DIEGO, Oct. 20, 2020 /PRNewswire/ -- Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today announced that on October 15, 2020, the Compensation Committee of its Board of Directors granted to seven new employees inducement stock options to purchase an aggregate of 66,475 shares of its common stock and 11,760 inducement restricted stock units ("RSUs"). The inducement stock options and RSUs have a grant date and vesting commencement date of October 15, 2020, and were granted as inducements material to the new employees entering into 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 $81.57 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 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.

Corporate Contact:
Megan E. Knight
Arena Pharmaceuticals, Inc.
Director, Investor Relations 
mknight@arenapharm.com
858.210.3635

Arena Media Contact: 
IR@arenapharm.com 
858.453.7200 

View original content to download multimedia:http://www.prnewswire.com/news-releases/arena-pharmaceuticals-reports-inducement-grants-under-nasdaq-listing-rule-5635c4-301156210.html

SOURCE Arena Pharmaceuticals, Inc.

FAQ

What stock options and RSUs did Arena Pharmaceuticals announce?

On October 15, 2020, Arena Pharmaceuticals granted 66,475 inducement stock options and 11,760 restricted stock units (RSUs) to new employees.

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

The exercise price for the stock options is set at $81.57 per share.

How long is the vesting period for the stock options and RSUs granted by Arena Pharmaceuticals?

Both the stock options and RSUs will vest over a four-year period.

What is the purpose of the stock option grant by Arena Pharmaceuticals?

The stock option grant is intended to serve as an inducement for new employees joining Arena Pharmaceuticals.

Under which Nasdaq rule were the inducement grants made?

The inducement grants were made under Nasdaq Listing Rule 5635(c)(4).