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

Rhea-AI Summary

Arena Pharmaceuticals (Nasdaq: ARNA) announced on December 15, 2020, that its Compensation Committee granted inducement stock options and restricted stock units (RSUs) to five new employees. The total grant includes 141,975 stock options and 2,460 RSUs, both having a grant date of December 15, 2020. The stock options have a seven-year term with an exercise price of $71.26, while both options and RSUs vest over four years. This grant aligns with Nasdaq Listing Rule 5635(c)(4) to attract new talent.

Positive

• Inducement stock options and RSUs granted to attract new talent.
• Stock options have a favorable exercise price of $71.26.

Negative

• None.

SAN DIEGO, Dec. 18, 2020 /PRNewswire/ -- Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today announced that on December 15, 2020, the Compensation Committee of its Board of Directors granted to five new employees inducement stock options to purchase an aggregate of 141,975 shares of its common stock and 2,460 inducement restricted stock units ("RSUs"). The inducement stock options and RSUs have a grant date and vesting commencement date of December 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 $71.26 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 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 stock options were granted by Arena Pharmaceuticals on December 15, 2020?

Arena Pharmaceuticals granted 141,975 inducement stock options and 2,460 restricted stock units (RSUs) to five new employees.

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

The exercise price for the stock options is $71.26 per share.

Over what period do the stock options and RSUs granted by Arena Pharmaceuticals vest?

Both the stock options and RSUs vest over four years, with specific vesting schedules.

Why did Arena Pharmaceuticals grant inducement stock options?

The inducement stock options were granted to attract new employees in accordance with Nasdaq Listing Rule 5635(c)(4).