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

Rhea-AI Summary

Arena Pharmaceuticals (NASDAQ: ARNA) has granted inducement stock options to 23 new employees, totaling 39,400 shares, along with 18,760 restricted stock units (RSUs). The options have a seven-year term, an exercise price of $58.85, and vest over four years. 25% will vest after one year, with the remainder vesting monthly. The RSUs also vest over four years in a similar manner. This move is in accordance with Nasdaq Listing Rule 5635(c)(4) and aims to attract talent to the company.

Positive

• Inducement stock options granted to 23 new employees could enhance workforce retention and productivity.
• Total of 39,400 shares and 18,760 RSUs granted signifies a commitment to incentivize new talent.

Negative

• None.

PARK CITY, Utah--(BUSINESS WIRE)-- Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today announced that the Compensation Committee of its Board of Directors granted to 23 new employees inducement stock options to purchase an aggregate of 39,400 shares of its common stock and 18,760 inducement restricted stock units ("RSUs"). The inducement stock options and RSUs have a grant date and vesting commencement date of November 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 $58.85 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 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/20211116006324/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 by Arena Pharmaceuticals?

Arena Pharmaceuticals granted inducement stock options for 39,400 shares and 18,760 restricted stock units (RSUs) to 23 new employees.

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

The stock options granted by Arena Pharmaceuticals have an exercise price of $58.85 per share.

When do the stock options and RSUs vest?

The stock options and RSUs vest over four years, with 25% vesting after one year and the remainder vesting monthly or quarterly thereafter.

How long is the term for the stock options granted by Arena Pharmaceuticals?

The inducement stock options have a term of seven years.

Under which Nasdaq rule were the stock options granted?

The inducement stock options were granted in accordance with Nasdaq Listing Rule 5635(c)(4).