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

Rhea-AI Summary

Arena Pharmaceuticals (Nasdaq: ARNA) granted inducement stock options to 22 new employees on May 15, 2021. A total of 74,905 shares were authorized for stock options, alongside 32,050 restricted stock units (RSUs). The stock options, with an exercise price of $61.46 per share, vest over four years. The RSUs similarly vest over four years with a structured timeline. Both incentives are governed by Arena's Amended and Restated 2020 Long-Term Incentive Plan, highlighting Arena's commitment to attract talent and support employee retention.

Positive

• Inducement of stock options and RSUs demonstrates Arena's strategy to attract and retain talent.
• The grant of options aligns with competitive compensation practices in the biotech sector.

Negative

• None.

Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today announced that on May 15, 2021, the Compensation Committee of its Board of Directors granted to 22 new employees inducement stock options to purchase an aggregate of 74,905 shares of its common stock and 32,050 inducement restricted stock units ("RSUs"). The inducement stock options and RSUs have a grant date and vesting commencement date of May 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 $61.46 per share, the closing price of Arena's common stock on the last trading day preceding 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 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/20210519005942/en/

FAQ

What are the key details of Arena Pharmaceuticals' stock option grants on May 15, 2021?

Arena Pharmaceuticals granted 74,905 stock options and 32,050 inducement RSUs to 22 employees, with a $61.46 exercise price and four-year vesting.

How do the inducement stock options at Arena Pharmaceuticals vest?

The stock options vest over four years, with 25% vesting on the one-year anniversary and the rest monthly over three years.

What is the purpose of the stock options and RSUs granted by Arena Pharmaceuticals?

The stock options and RSUs are intended to incentivize and retain new employees, aligning with Nasdaq Listing Rule 5635.