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

Rhea-AI Summary

Arena Pharmaceuticals (Nasdaq: ARNA) announced the granting of inducement stock options and restricted stock units (RSUs) to 17 new employees on June 15, 2021. The options allow for the purchase of 64,401 shares at an exercise price of $65.60, vesting over four years. Additionally, 27,857 RSUs were granted, also vesting over four years. This move is in compliance with Nasdaq Listing Rule 5635(c)(4) to attract new talent. The options and RSUs are part of Arena's 2021 Long-Term Incentive Plan.

Positive

• Inducement stock options granted to 17 new employees may enhance talent retention and recruitment.
• Stock options have an exercise price of $65.60, aligning employee incentives with shareholder value.

Negative

• None.

Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today announced that on June 15, 2021, the Compensation Committee of its Board of Directors granted to 17 new employees inducement stock options to purchase an aggregate of 64,401 shares of its common stock and 27,857 inducement restricted stock units ("RSUs"). The inducement stock options and RSUs have a grant date and vesting commencement date of June 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 $65.60 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 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 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.

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FAQ

What new employee incentives were announced by Arena Pharmaceuticals on June 15, 2021?

Arena Pharmaceuticals announced the granting of inducement stock options and restricted stock units to 17 new employees on June 15, 2021.

How many shares were granted as inducement stock options by Arena Pharmaceuticals?

A total of 64,401 shares were granted as inducement stock options to new employees.

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

The exercise price for the stock options is $65.60 per share, based on the closing price on the grant date.

What is the vesting schedule for the inducement stock options at Arena Pharmaceuticals?

The inducement stock options vest over four years, with 25% vesting on the one-year anniversary and the remainder vesting in equal monthly installments.

What is the total number of RSUs granted to new employees by Arena Pharmaceuticals?

Arena Pharmaceuticals granted 27,857 inducement restricted stock units (RSUs) to new employees.