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

Rhea-AI Summary

Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) announced on November 15, 2020, that its Compensation Committee has granted stock options and restricted stock units (RSUs) to 13 new employees. A total of 96,025 stock options and 17,590 RSUs were awarded as incentives for joining the company. The stock options have an exercise price of $66.68 and a seven-year term, vesting over four years. RSUs will also vest over four years. These grants comply with Nasdaq Listing Rule 5635(c)(4), which allows inducement grants to new employees.

Positive

• Inducement grants of 96,025 stock options and 17,590 RSUs to 13 new employees may enhance talent acquisition.
• Stock options have a seven-year term, potentially aligning employee interests with long-term company performance.

Negative

• None.

SAN DIEGO, Nov. 19, 2020 /PRNewswire/ -- Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today announced that on November 15, 2020, the Compensation Committee of its Board of Directors granted to 13 new employees inducement stock options to purchase an aggregate of 96,025 shares of its common stock and 17,590 inducement restricted stock units ("RSUs"). The inducement stock options and RSUs have a grant date and vesting commencement date of November 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 $66.68 per share, the closing price of Arena's common stock on the last trading date 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 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 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 Contacts:
Patrick Malloy
Arena Pharmaceuticals, Inc.
Vice President, Investor Relations & Corporate Communications
pmalloy@arenapharm.com 
847.987.4878

Megan E. Knight
Arena Pharmaceuticals, Inc.
Director, Investor Relations 
mknight@arenapharm.com 
858.210.3635

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SOURCE Arena Pharmaceuticals, Inc.

FAQ

What is the significance of Arena Pharmaceuticals' recent stock option grants?

Arena Pharmaceuticals recently granted inducement stock options and RSUs to attract new talent, potentially impacting future performance.

How many shares were granted to new employees at Arena Pharmaceuticals?

Arena Pharmaceuticals granted a total of 96,025 stock options and 17,590 RSUs to 13 new employees.

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

The exercise price for the stock options granted is $66.68 per share.

When did the stock options and RSUs become effective at Arena Pharmaceuticals?

The stock options and RSUs became effective on November 15, 2020.