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

Rhea-AI Summary

Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) announced on June 15, 2020, the grant of inducement stock options for 80,250 shares and 12,360 restricted stock units (RSUs) to new employees. The stock options have a seven-year term with a $63.11 exercise price and vest over four years. RSUs also vest over four years. These grants are part of Arena's compliance with Nasdaq Listing Rule 5635(c)(4), aimed at attracting talent to support the company’s growth and operational goals.

Positive

• Granting of stock options may attract and retain key talent.
• Compliance with Nasdaq rules enhances credibility.

Negative

• None.

SAN DIEGO, June 18, 2020 /PRNewswire/ -- Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today announced that on June 15, 2020, the Compensation Committee of its Board of Directors granted inducement stock options to purchase an aggregate of 80,250 shares of its common stock to 12 new employees and 12,360 inducement restricted stock units ("RSUs") to 11 new employees. The inducement stock options and RSUs have a grant date and vesting commencement date of June 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 $63.11 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 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 position, drive, portfolio, prioritization, financial position, team, and building of the company. 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 were the inducement grants provided by Arena Pharmaceuticals on June 15, 2020?

Arena Pharmaceuticals granted stock options for 80,250 shares and 12,360 restricted stock units to new employees.

What is the exercise price of the stock options granted on June 15, 2020?

The exercise price of the stock options is $63.11 per share.

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

The stock options have a seven-year term.

How do the vesting schedules for the stock options and RSUs work?

The stock options vest over four years, with 25% vesting after one year, and the remaining 75% vesting monthly. RSUs vest similarly over four years.

What is Nasdaq Listing Rule 5635(c)(4) related to Arena's inducement grants?

This rule allows companies to grant inducement equity awards to new employees, which Arena adhered to in its recent grants.