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

Rhea-AI Summary

Arena Pharmaceuticals (NASDAQ: ARNA) has granted 18,527 inducement restricted stock units (RSUs) to 18 new employees as per Nasdaq Listing Rule 5635(c)(4). This grant, effective February 15, 2022, is intended as an inducement for new hires. The RSUs will vest over four years, with 25% vesting after the first anniversary and the remainder vesting in 12 equal quarterly installments. This move aims to enhance talent acquisition and retention in a competitive market.

Positive

• Granting of 18,527 inducement RSUs to attract new talent.
• Vesting schedule incentivizes long-term employee retention.

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 18 new employees 18,527 inducement restricted stock units ("RSUs"). The inducement RSUs have a grant date and vesting commencement date of February 15, 2022 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 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, except in the case of a qualifying termination following a change in control. The 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/20220217005109/en/

Patrick Malloy

Arena Pharmaceuticals, Inc.

Vice President, Investor Relations & Corporate Communications

pmalloy@arenapharm.com

847.987.4878

Source: Arena Pharmaceuticals, Inc.

FAQ

What is the recent press release about Arena Pharmaceuticals (ARNA)?

Arena Pharmaceuticals announced the granting of 18,527 inducement RSUs to 18 new employees to help attract talent.

How do the inducement RSUs for Arena Pharmaceuticals employees vest?

The inducement RSUs vest over four years, with 25% vesting after the first year and 75% vesting in equal quarterly installments.

When were the inducement RSUs granted by Arena Pharmaceuticals?

The inducement RSUs were granted on February 15, 2022.

Why did Arena Pharmaceuticals grant inducement RSUs?

The RSUs were granted as inducements material to the hiring of new employees, following Nasdaq Listing Rule 5635(c)(4).

What is the purpose of the RSUs granted by Arena Pharmaceuticals?

The purpose of the RSUs is to enhance talent acquisition and retention in a competitive job market.