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

Rhea-AI Summary

Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) announced the granting of 28,659 inducement restricted stock units (RSUs) to 16 new employees as part of their employment arrangement. The RSUs have a grant and vesting commencement date of December 15, 2021, with a four-year vesting schedule, where 25% will vest on the first quarterly vesting date after one year, followed by 12 quarterly installments. This action aligns with Nasdaq Listing Rule 5635(c)(4) and is part of Arena's 2021 Long-Term Incentive Plan, intending to attract and retain talent.

Positive

• Grant of 28,659 inducement RSUs to attract new talent.
• RSUs vesting schedule promotes 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 16 new employees 28,659 inducement restricted stock units ("RSUs"). The inducement RSUs have a grant date and vesting commencement date of December 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 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/20211221005224/en/

Patrick Malloy

Arena Pharmaceuticals, Inc.

Vice President, Investor Relations & Corporate Communications

pmalloy@arenapharm.com

847.987.4878

Source: Arena Pharmaceuticals, Inc.

FAQ

What was announced by Arena Pharmaceuticals on December 15, 2021?

Arena Pharmaceuticals announced the granting of 28,659 inducement restricted stock units (RSUs) to 16 new employees.

What is the vesting schedule for the RSUs granted by Arena Pharmaceuticals?

The RSUs vest over four years, with 25% vesting after one year and the remaining 75% vesting in 12 equal quarterly installments.

Which rule allows Arena Pharmaceuticals to grant inducement RSUs?

The inducement RSUs were granted in accordance with Nasdaq Listing Rule 5635(c)(4).