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 six new employees on July 15, 2020. The total granted options amount to 35,850 shares, and 6,310 RSUs are offered, with a grant date and vesting commencement on the same day. The stock options have a seven-year term, an exercise price of $67.50, and vest over four years. The RSUs also vest over four years, aligning with the company's long-term incentive plan, aimed at attracting talent to execute its mission.

Positive

• Inducement stock options and RSUs issued to six new employees, totaling 35,850 shares and 6,310 RSUs, indicating talent acquisition.
• Options have an exercise price of $67.50, aligning with recent stock performance.

Negative

• None.

SAN DIEGO, July 17, 2020 /PRNewswire/ -- Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today announced that on July 15, 2020, the Compensation Committee of its Board of Directors granted to six new employees inducement stock options to purchase an aggregate of 35,850 shares of its common stock and 6,310 inducement restricted stock units ("RSUs"). The inducement stock options and RSUs have a grant date and vesting commencement date of July 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 $67.50 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 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 following the one-year anniversary of the vesting commencement date and the remaining 75% of the shares vesting in equal quarterly installments over the following 12 quarters, 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 

 

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SOURCE Arena Pharmaceuticals, Inc.

FAQ

What are the inducement stock options granted by Arena Pharmaceuticals?

Arena Pharmaceuticals granted inducement stock options totaling 35,850 shares to six new employees on July 15, 2020.

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

The exercise price for the stock options granted by Arena Pharmaceuticals is $67.50.

How long do the stock options from the inducement grant last?

The inducement stock options have a seven-year term.

What is the vesting schedule for the RSUs granted by Arena?

The RSUs vest over four years, with 25% vesting on the first quarterly date after the one-year anniversary.